Our June promotion is about adding value to your website or website assets like email list, email newsletter, copywriting, form assets, SEO, Adwords, imagery, audio visual resources, etc.
When we talk about adding value, we are essentially on about increasing:
Recently we have been thinking a lot about website valuations and the factors that contribute to an increasingly valuable website asset. As the web matures and as web owners consider selling their website/s and businesses with a website, our focus is moving more to ensuring that we work with web owners to establish and achieve both short and longer term goals. It is not just about getting a website up and running and optimised for immediate traffic, service delivery and sales. It is also about building in sustainability through testing, tweaking, editing, rewriting, improving SEO and generally taking a broad approach to improving the web/site asset value.
Two resources we offer clients are:
Building a Website You Can Sell in 2013
Todd Malicoat - 8 Jan 2013
This is a summary and brief review of a relatively recent (Jan. 2013) blog post about considerations that a web developer and a business owner should have in mind when building a new website. When planning a website these factors, if heeded, may make a significant difference to the sale price achieved at some future date. Value Websites recommends that if this summary whets your appetite for more, you read Malicoat's full article. The headings below are Malicoat's.
General thoughts on website appraisal
Malicoat begins with Rule #1 – "You can’t sell potential." Take the word out of your vocabulary, he asserts. Cringe when you hear it from others. Most sites currently sell for between 12-36 months of revenue, or a 1-3x annual revenue multiple - you’ll be lucky to get a 3x multiple!
He offers a helpful Primer on valuation principles: 10 Rules for Valuation by Tim Berry
Online Business and Revenue Models
A list to consider.
A series of questions to ask of a website which are helpful when appraising a website's real value.....
Website Appraisal Tools
9 are identified and explained, including Alexa, Google Analytics and Google Adwords' Tool ....
(Potential) Website Valuation Equations
A few ways of putting a price tag on a website:
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