Hi, a question that a client asked me: ?is there a way to calculate the net value of a web site??.


I said ?good question? I only know how much to charge!


So maybe some one out there can help?

I need a tested way/math equation to get the net worth (accounting value) of a web site, based on:

Content and
Number of visitors and
Possibly new customers customers/sales

Dunno of any formula.

A web site is worth whatever someone is prepared to pay for it.

http://www.sitepointforums.com/forum...?s=&forumid=56

Sales is the most/only relevant factor.

Basically, the only thing you can really do:

Take your sales and subtract the cost, to get your profit. Multiply your profit by a W, W being a multiple you think of. Your only negotiable part of this is W which will be negotiated between you and the buyer.

I disagree.

Currently my site makes NO money, in fact it loses money. Now, there is a reason why this is happening, because I am holding out for something else big.

However I think mancroft is right. Your formula's would put my site at a value of 0 for sure. However I have some large traffic, of which is very niche and marketable in the hands of the right person (someone with an established relevant business, or someone looking to start a new business).

Instead of trying to sell it, I am starting a business I am just giving you an example of how non money making sites can be of worth.

A business ownere with little or no sales and negative profits should find it very, very difficult to sell his/her business.

It's very important to a buyer that there be demonstrable monetization.

ask yourself this...why would someone want to buy a site that doesn't produce positive revenue?

Because they like creating sites for the good of humanity.

Well indeed there are many reasons, humane, cultural, social, political, historical, or commercial etc.

Some times its just being there that counts, like in my situation, where the web site is a wholesalers (they sell B2B instead of B2C).

So they cant sell directly on their web site like Amazon books, but they do supply information and links to shops that do sell.

So in retro speaking they support the whole industry and generate revenue, indirectly.

These people have 2000 hits a week 70% returning visitors.

The web site is important critical for just showing they are there happy to help and supply information.

But if they spend money on an IP address or a web service or pay someone to develop their website they have to account for it.

If this money becomes 0 value instainausly when its spent politically within the company people could argue that the web site isn’t worth it from a financial value when you look at it on a piece of paper.

But when a customer tells the boss hat they have had 50 new customers directly from the web site that worth hard cash!

In that case, the resell value of the site should be of no consequence. Your website would be just another form of advertising, in which case you have to weigh costs and returns or projected returns.