Putting A Price On Your Website

Time to sell your website?  Or just curious to find out what it is worth?

Here are some tips on how to price your website:

Step One.  Document your traffic.  How much traffic do you get on a daily basis? How many page views?  How long do they stay on your site?  What is your search engine ranking?  All of this information is vital to a potential buyer. The more traffic you have and the higher your search engine ranking the higher you can price your website.

Step Two.  What is your revenue?  From advertising?  From sales?  How much money does your website make?  It’s important to look not only at your most recent sales and advertising profits but to also look at past numbers.  What percentage of growth has your website seen in the past six months?  Year?  Lifetime?  This is important because it not only demonstrates trends; it also demonstrates growth potential and profit potential – both very important to a potential buyer.

Step Three.   What are your revenue options?  How is the website currently making money and what profit options have not been explored or implemented?  For example, if you’re currently participating in AdSense and making money there, perhaps another revenue option is to sell advertising space.  List possible revenue options.  The more opportunity to make money, the higher the value of your website.

Step Four.  How much competition does the site have?  Who is the competition and what are their sites worth?  Ideally the perfect website would have zero competition and tons of demand however that is never the case.  Who is your competition?  How long have they been in business?  What are their revenue streams?  Where do they rank on the search engines in comparison to you?  This information not only helps to value your website, it helps potential buyers see the possibilities.

Step Five.  Consider using a website valuation tools found online.  They typically ask for monthly traffic, ad revenue, sales revenue and expenses.  They’re a great tool to use as a starting point to price your website.  Valuation tools do not know your audience, revenue options, nor do they know your competition.

Finally, if after all of your steps you find that your site is worth a bit less than you want to sell it for, there are a few steps you can take to increase its value.  These include SEO strategies to improve ranking.  Add advertising revenue to your site.  Tweak the navigation and/or layout so it’s easier to use and more appealing to visitors.

Often simple adjustments can have dramatic effects on the value of your website.  If you’re ready to sell your site, it pays to take the time to follow these steps and take the time to optimize your site for maximum profits.

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