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How do you dertermine the price of a website

I personally believe Page Rank also matters a lot for getting search engine traffic for longer period.The site having good page rank will get sustained result .
 
Often times website does not even have to make any money to valued at high price as long the traffic is there than there is potential to monetize it. Twitter is a good example, they have not made any money but are worth a lot.
 
My view is that everything other than profit is irrelevant. And I mean real profit. I would expect to see some expense for the running of the site. i.e. the person who built and runs it should have been paid for their time.

For example say a site earns £1000 from Adsense per year and requires 1 hour of maintenance per month (£20 per hour seems reasonable) then that would be a £240 cost. Then factor in domain name renewal and any other costs.

So the profit is now £1000 less £240 less other costs. I would be a bit more generous than the 10 months rule. Maybe 18 months - 2 years.
 
Standard Practice would be 10 X Monthly Income. But there are other things also need to looked at like the Value of the domain, age of the website, Search Engine Rankings etc.
 
I heard that the general rule of the 10x monthly income is pretty accurate. Though I don't agree, largely due to the fact that 10 months is a long time in internet terms.

Income is irrelevant. It is profit that is important. How much is a website worth if it has an income of £100,000 a year but the costs are £120,000?
 
It's cliche, but a website is worth what someone is willing to pay for it.

Normally I start at monthly revenue x 12 + 50%. You then get knocked down to the price they are willing to pay.
 
Why don't you advertise your site as 'For Sale' and ask people to offer you a price? If people think it is a good site and are interested in buying, they will offer you something around what they think it is worth - if you get a few offers, you can compare and take an average.
 
Why don't you advertise your site as 'For Sale' and ask people to offer you a price? If people think it is a good site and are interested in buying, they will offer you something around what they think it is worth - if you get a few offers, you can compare and take an average.

That's a great idea and thank you for the same .
 
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