Although there are various tools for determining a website’s worth online, they may not always provide reliable results. It is for this reason that you have to understand how to value your site. For instance, some of these websites use only revenue earned from Google AdSense. This may not be the best approach since numerous sites have various other sources of income streams apart from Google AdSense. The second reason is that the income from Google AdSense is actually very low, so it can’t be regarded as the standard of measuring ad revenue.
The other factor is the Alexa ranking. Even though it is widely used, it is mainly based on the amount of traffic to a given website. First and foremost, to be considered a user, one must have an Alexa toolbar installed. This reduces the count of countless visitors to a given site. Then there is also the high number of visitors to any given website does not necessarily relate to a high income. Income is largely based on the business model that any site operation. Here are the accurate ways to value your sites.
Website Earnings
The first consideration a buyer will probably look at is the earnings of a website. Logically the more a site has in earnings, the more potential buyers you will have. If your site has consistent earnings of say $100 per month the typical formula is to multiply the earnings times 5-12 times those earnings. So you could ask for probably about $500 – $800 and get it. Again assuming sales are consistent. Higher-end sites earning thousands per month can see a multiple of 12-48 times monthly earnings. For example, a website that is consistently earning $5,000 per month or $60,000 per year could be sold for $60,000 – $500,000.
Traffic On Your Site
A website that draws a high amount of traffic has a higher potential of business than one that doesn’t. The higher the traffic, the higher the market value. Having lots of traffic to your website is something that will definitely attract customers. Better than having high traffic to your site is having lots of “targeted traffic” to your site. Targeted traffic converts browsers to buyers. Lots of targeted traffic converted to buyers means that your website is getting AdSense clicks, affiliate sales, or making CPA commissions.
Back Links to Your Website
Backlinks are links that can be followed from another website to your website. It is used by the search engines to determine the importance of your site compared to other sites similar to yours. Backlinks are used as a kind of voting system. Links to your site cast a vote of authority for your website. The more links you have, the more power the SERPs will grant to you. You can build links by writing and submitting articles to article directories with your author resource box attached. Submitting your sites URL to open directories is another way to build up your links.
It is possible, however, to affect variables such as traffic stats, conversion rates, and income. Such factors may be deliberately manipulated or misrepresented by unscrupulous people to inflate the perceived value of their listings. If not actually manipulated, figures can still be massaged via statistical methods. Provided no attempt is made to manipulate such statistics, the above process provides an objective way of arriving at the value of a website.