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How to calculate the price of a website

How to calculate the price of a website

January 28, 2016

Websites are now considered as assets or businesses. You can sell these assets or businesses to anyone who pays better for it. Some people are much involved in this business. They do it like a real estate business person or a constructor who builds houses and buildings and then sells them to the best buyer who pays good. And no doubt selling websites is a profitable business. If you know how to get your websites ranked and how to derive traffic to your websites then it’s the best business for you. You can earn thousands of dollars every month.

What Are You Thinking?

Your eyes might be shining if you also have a website and now you might be thinking about selling your website. But to sell your website you must be aware of the value for which it can be sold. Just imagine you come to me and say “Hey listen! I want to sell my website.”. Can you guess what will I utter? I will simply ask you, “What the price?” or “How much you want?”. Every buyer - rational or not - will ask the same question. If you really don’t know the worth of your website, you will get confused and will ask the buyer how much he will pay willingly for it. That’s a wrong style to deal and definitely a wrong way to sell. The best way is to put up a price of your website and the put it for sale.

Online Website Worth Calculators

What’s the price of a website? That’s a little tricky question abut not that much tricky one. If you will search in Google that how to calculate price of a website, you will definitely get links of websites has some website worth calculators. These are the scripts which calculate the worth of your website. Just enter the URL and you will get the worth of your website. Few calculators will disappoint you by showing much lower price than the one you imagined but few will reach somewhat near to the price you wanted to ask. You are recommended not to use these tools at all. These are actually useless. All such website worth calculators use almost similar algorithm. Few goes in details while other uses simple matrices to calculate the worth of your website. Almost all calculators gets traffic data from Alexa. Few estimate the Google Adsense Revenue and calculate total revenue of 2 years and tells you the worth of the website. Few websites have some advanced scripts which judge keywords of your website and then gets CPM and CPC cost of those keyword from Adwords and then calculate an estimated revenue and then tells you the price of your website. These kind of calculators are rare but these tries to calculate more accurate worth of your website. But don’t ever rely on these ideas.

Actual Way to Calculate Price of Website

The best way is to figure out how much you earned during last 12 months from this website. Multiply this figure with 2 or 2.5 and then you will get the worth of the website that you can demand from your buyers confidently. If you are not using any kind of income stream then it will be little tricky to know how much your website worth. In that case you will have to follow the same procedure as used by advanced calculators i.e.get the traffic data, get the CPM and CPC rates and keep the conversion rate to minimum for CPC. Now you have figures to calculate the daily earning of your website. Once you get some figure, multiply it with 900 and you will get the worth of your website.

Keep it in mind that if your domain is an old one then you can demand higher price as older the domain, more the authority and hence it costs higher. There was a time when Page Rank was also a factor while calculating the worth of a website. But now on one bother to care about Page Rank so you can ignore it too.

So, here you learned about the procedure that how to calculate the price of a website. You also cleared the concept about online website worth calculators. I can hope now you can calculate the price of your website and will sell it at good price.