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Selling a website is a profitable venture. But before you sell a website you must have an idea how to calculate the price that you are going to ask for your website.
There is not a single method that can calculate price of your website. However there are pointers and we would be discussing them.
Revenue Based Price
This is the simplest method. Using this method you would calculate the average monthly revenue of the site using the last three or four months of data, and multiply the monthly revenue by 12.
Average value of 4 months is taken to avoid false results due to change in web statistics.
I have always questioned this method. A website might have a very good revenue potential but actually zero on the profits. Does that mean that the site is not worth anything.
Therefore, if your site does not make much and you want to sell it you can formulate a price based on following.
Domain
If you have good domain you can ask a higher price. to have an idea you should get your domain appraised You might consider getting your domain name appraised by a third party such as NamePros.
Brand value
If your website is an established brand in its content niche that might add value. For example, Warrior Forum is a well known brand among users. Definitely it would have higher price.
Web Design
A quality, custom website design adds value.
Traffic
More traffic means more money. It is so obvious.
Search Engine
High search engine results rankings can contribute to the value of your website.
Inventory
If you are selling downloads, and are including inventory, make sure to include its value in your asking price.
Custom Programming : A content management system or script modification might add value to your site. Be sure to take them into consideration.
Script Licenses : If you are selling your website with licenses to various scripts that will undoubtedly add value to your site.
Your Community : If your site has an established community, your users are worth money. The more active users you have, the more money you can ask for.
One final thing. In spite of everything your website is worth as much as someone is willing to pay you for it.
This might be more or less than the price you calculate.
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Source by Arun Pal Singh
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