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- 2: Valuation Methods
- Current page is 3: Evaluation Criteria
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Buyers Tip
When buying a website, don't get emotionally attached to the sale.
Always look at a sale objectively and ask yourself "Where is the revenue coming from?" and "If it is so great, why is he/she selling?"
Sellers Tip
When selling a website, build up a relationship with your buyers.
Always talk via PM's. It builds up the number of interactions you have with your buyer which, research has shown, improves trust.
It also leaves the buyers to imagine what stage you are up to in negotiations with other buyers!
Evaluation Criteria
It's damn hard knowing what your site is worth right?
Even the experts disagree on values, and there's nobody in the world that will get it right all the time.
After all, the real value of a site is the price someone pays for it.
However there are guidelines that help make it easier. Here are the guidelines I use to value websites.
Revenue, Profit and Growth
This is the reason you're buying the website right? Read More.
Traffic
Traffic is the lifeblood of the website. How stable is it? Read More.
User Base
Evaluate the existing user base. Read More.
Software
How to evaluate the software, scripts, and custom programming that come with the site. Read More.
Design
A look at how design ads value to a website. Read More.
Automation
Including the cost of your time in the value of a website. Read More.
Potential for improvement
How do you put a number on the changes you are going to make. Read More.
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