Website Valuations

By: David Gass

• Examples of Website Sales• Determining Value• Companies Buying Sites TODAY

What Is a Site’s Value?

Whatever Someone Will Pay For It!

Two Types of Buyers:StrategicInvestment

Strategic Buyers Typical Place Higher Values on Sites

VerticalScope

Escalate Media

Internet Brands

Investment Buyers Typical Buy Based on Specific Multiples

1-3 Years x Gross Revenue

2009 - $1,300,000

2007 - $1,300,000

2007 - $8,000,000

Examples Of Site Sales

2010 - $30,000,000

2008 - $30,000,000

2008 - $30,000,000

Examples Of Site Sales

2007 - $100,000,000

2007 - $90,000,000

2007 - $33,000,000

Examples Of Site Sales

Determining Value

• Age • Traffic• Profit• Niche• Analytics• Domain Name

Irrelevant In Determining Value

• Sunk Costs• Perceived Potential By Seller

Assigning Value

• It’s not the Price it’s the Terms• Multiples Range from

6 months to 6 years profit

Values on Flippa.com• Analyzed 50 Blogs• Avg. Unique Visits Per Month 67,946• Avg. Revenue Per Month $1,521• Avg. Price Sold $22,592• Price Per Unique Visitor - $1.66• Multiple 29 (2 years and 5 months)

How to Increase Value

• Valuable Content• Increase Traffic• Properly Monetize the Site• Perceived Value vs. Actual Value

Key Metrics for Buyers• Revenue Per Unique Visitor• $15,000 Revenue Per Month• 30,000 Unique Visitors Per Month• $15,000 / 30,000 = $.50 RPUV

Key Metrics for Buyers

• Page Rank• Domain Authority • Page Authority• Social Followers

Three Attributes to Determine Value

• Domain Authority• Total Page Views• Revenue Per Unique Visitor

My Contact Information

David Gassdavid@davidgass.comwww.DavidGass.com

www.linkedin.com/in/davidgasslasvegas www.facebook.com/businesscredit