{"id":45,"date":"2007-11-28T05:58:21","date_gmt":"2007-11-28T09:58:21","guid":{"rendered":"http:\/\/blog.websitebroker.com\/website-valuation\/factors-to-take-into-account-when-valuing-a-website"},"modified":"2011-12-11T22:45:13","modified_gmt":"2011-12-12T02:45:13","slug":"factors-to-take-into-account-when-valuing-a-website","status":"publish","type":"post","link":"https:\/\/www.websitebroker.com\/articles\/website-valuation\/factors-to-take-into-account-when-valuing-a-website","title":{"rendered":"Factors to take into account when valuing a website"},"content":{"rendered":"<p>There is no established formula for the valuation of a web site. However, there are several factors to consider when valuing a website. These items are discussed more fully in our website valuation article, but we wanted to provide you with a brief summary:<\/p>\n<h4>A.    Profits and Cash Flow (This is really revenue minus costs)<\/h4>\n<ul>\n<li><strong>1. Source of Revenues<\/strong>\n<ul>\n<li>  a.\tMonthly products or services sales from site.<br \/>\nb.\tMonthly membership dues<br \/>\nc.\tSubscription<br \/>\nd.\tCommissions from other sources<br \/>\ne.\tRevenue from partnership deals<br \/>\ng.\tAdvertising<\/p>\n<ul>\n<li>  i.\tSell through rate<\/li>\n<li>ii.\tDoes the site have an ad delivery system in place<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>\n<!--more--><\/p>\n<ul>\n<li><strong>2. Operating Costs<\/strong>\n<ul>\n<li>a.    Monthly server\/server costs<br \/>\nb.    Monthly hosting<br \/>\nc.    Monthly fees<br \/>\nd.    Monthly bandwidth excess charges<br \/>\ne.    Monthly staff<br \/>\nf.    Monthly outside labor<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li><strong> 3.    Growth Multiple<\/strong><\/li>\n<\/ul>\n<h4><\/h4>\n<h4> B.    Assets<\/h4>\n<ul>\n<li><strong>1.    Technology<\/strong>\n<ul>\n<li> a.    Hardware included<br \/>\nb.    Software included<br \/>\nc.    Rights included with the site (hosting, access)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li><strong>2.    Content<\/strong>\n<ul>\n<li> a.    Total number of pages at site<br \/>\nb.    Number of original pages<br \/>\nc.    Total number of graphics at site<br \/>\nd.    Number of original graphics<br \/>\ne.    Number of links to other relevant sites<br \/>\nf.    Is content optimized?<br \/>\ng.    Value of domain name<br \/>\nh.    Trademarks<br \/>\ni.    How long around<br \/>\nj.    Domain Age<br \/>\nk.    Good will<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li><strong>3.    Databases<\/strong>\n<ul>\n<li> a.    Database of name and e-mails of previous visitors (i.e. guest book)<br \/>\nb.    Database of past customer (if site sells products \/ services)<br \/>\nc.    Does site keep record\/ track of past promotions and marketing<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h4>C.    Traffic<\/h4>\n<ul>\n<li>1.    <strong>Number of &#8220;hits&#8221; per day<\/strong>\n<ul>\n<li> i.    What is a hit?<br \/>\nii.    Rankings on third party services<br \/>\niii.    What is the traffic worth?<br \/>\niv.    Number of page views<br \/>\nv.    Traffic from search engines<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li><strong>2.Traffic sources.<\/strong>\n<ul>\n<li>vi.    Traffic from caches?<br \/>\nvii.    Invisible traffic<br \/>\nviii.    Traffic through links from other sites<br \/>\nix.    Traffic to site from other sources<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li><strong> 3.    Ratio of visitors to page views<\/strong><\/li>\n<li><strong>4.    Number of Links to the site from other sites<\/strong><\/li>\n<li><strong>5.    The value of links<\/strong><\/li>\n<li><strong>6.    Percentage of traffic from search engines versus traffic from other links to site<\/strong><\/li>\n<li><strong>7.    Placement for relevant key words on search engines and historical performance data<\/strong><\/li>\n<li><strong>8.    Traffic growth per month in last year<\/strong><\/li>\n<li><strong>9.    Access statistics available for what period of time?<\/strong><\/li>\n<li><strong>10.    Automated messages<\/strong><\/li>\n<li><strong>11.    Are there newsletters or forums associated with the site?<\/strong><\/li>\n<li><strong>12.Number of RSS feed subscribers<\/strong><\/li>\n<\/ul>\n<h4>D. Niche<\/h4>\n","protected":false},"excerpt":{"rendered":"<p>There is no established formula for the valuation of a web site. However, there are several factors to consider when valuing a website. These items are discussed more fully in our website valuation article, but we wanted to provide you with a brief summary: A. Profits and Cash Flow (This is really revenue minus costs) 1. Source of\u2026 <span class=\"read-more\"><a href=\"https:\/\/www.websitebroker.com\/articles\/website-valuation\/factors-to-take-into-account-when-valuing-a-website\">Read More &raquo;<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[38,5],"tags":[87,438],"_links":{"self":[{"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/posts\/45"}],"collection":[{"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/comments?post=45"}],"version-history":[{"count":1,"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/posts\/45\/revisions"}],"predecessor-version":[{"id":650,"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/posts\/45\/revisions\/650"}],"wp:attachment":[{"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/media?parent=45"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/categories?post=45"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/tags?post=45"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}