Estimating a value

**aaronc** · 12-31-2011 07:59 PM

Hello guys,
been a long while since I've been in here and I have a few new questions.

How is a site valued ? Obviously traffic and income,.....but how much does growth rate factor in ?

In my area if a rental house is renting for $500 a month that house could expect to be in the $70,000 - $75,000 range........give or take. If a website brings in $500 a month would that be a good comparison for value ? I would think the site would acually be worth more given lower overhead and general maintenance issues. No where near the point of wanting to sell but would like to have a little knowledge of the "norms" for putting a value on a website.

At the end of the day I understand that the decision to sell anything is up to the individual but just looking for some thoughts on the issue from some web oriented people.

Thanks,
Aaron

**Kaidea** · 12-31-2011 09:55 PM

I'd say the income the business gets in 24 months is what it should be sold for. For example, a website makes $100 a month on average, the price i would estimate it worth would be $2400.

**jrockfl** · 12-31-2011 10:15 PM

I don't think a house and web a site is a good comparison. It comes down to how much someone is willing to pay for it.
$500 a month is not that much money in my opinion. Other things to factor in are hosting costs, maintenance cost.
How old is the web site? What is the income history? Traffic.

There is another forum category buying and selling a business, you might get better replies there.