Value Websites are sometimes approached to value a website. Websites are often a valuable part of the assets of a business. Sometimes a website may be offered for sale as part of a business sale, or independently of the wider business.
How to value a website?
The theoreticians suggest various approaches. One uses the typical business valuation method of isolating and assessing the net annual revenue generated by the website and multiplying this by a factor - usually between 0.8 and 1.6 or more, in the case of websites. The multiplier chosen will reflect the quality of the website against factors like age, usability, search engine optimisation, copy writing and other design factors.
Another methodology considers the value over time of the key words and phrases that generate 90% of website hits. It may be that there are only 3-5 of these that produce most hits. These key words and phrases are then assessed for value using Google Adwords keyword tool. The valuation continues from there and makes adjustments if traffic is being generated via Adwords rather than organic SE listings. Other expenses need to be assessed before a multiplier as in the first method above is used to determine final valuation.
Value Websites' Approach
As website designers with SEO skills, Value Websites will generally use a third methodology when valuing a website....
Terry Alve - Value Websites Limited