Every website owner who wants to see his website succeed will invest time, money and effort into making it so, and in turn creating a value. For different reasons, it may come that you are not that passionate about it anymore, and you would like to explore new projects.
Yes, sometimes considering selling your website can make more sense than holding on to it, which makes it important to have an assessment of your website value by taking into account the competing businesses, growth, and opportunities for creative ways to make it more profitable.
Why do website owners want to sell a website?
One of the major reasons why a website owner wants to sell a website is because they really need a change in their business profile, or they have found a more lucrative project, hence they want to get rid of other lower-profit avenues.
Investing a lot of time and effort into a website that does not give you the expected return, while better options have presented themselves is a true waste. It is a natural thing to have a business owner or entrepreneur to outgrow a project.
Selling the website is a very natural decision that will provide additional funds that you can invest in new and more appealing projects.
What are the means to sell a website?
Talking about selling a website, we cannot skip one of the biggest domain and website online marketplace: Flippa.
The main advantage of using Flippa is that you will be selling your website yourself, and you do not have to pay a commission to a 3rd party, but only a listing fee depending on your posting duration.
An alternative option, which can potentially provide higher profit is to employ a broker company, such as DigitalExits. This kind of company can provide an assessment of your website, though keep in mind that part of the money from the sale will go into commission.
What are the website value assessment features?
For some website owners, it will sound weird that the amount of money they invested in building their website has no impact on the website value, but it is the truth.
Once you have an accurate overview of different factors that influence the worth of a website, you will be able to make a realistic sale expectation.
The most common factors for website value are not that different from any other business:
- Quarterly and yearly profits
- Sales volume
- Growth opportunities
- Revenue streams
- Website traffic sources
- Running cost
One factor which cannot be measured accurately but is important is the “social value”, meaning even if your website is not profitable but can influence a potential audience of buyers, then that is a value.
Community engagement and website authority are also important because a well-established and renowned website has credibility inside its business niche, and again, provides value.
How can you assess your website value?
One of the most common ways is to use an online website value calculator, for example, “Worth of Web”, which can give you an estimate of how much you can make by selling your site.
Also, this easy tool can provide insight into public traffic ranking data for visits and page views, and calculate the potential advertising revenue for your site.
All you have to do is simply input the domain of your site and click Analyze, and wait for the analysis to be completed. A results page with details will also add a “Worth of Web rank” in percentage with potential earnings.
Keep in mind that this is only an estimate, and expert opinion is needed for a definitive conclusion.
Get a broker to appraise your website or domain?
The somewhat more costly option is to employ the service of a professional website broker to appraise your website or a domain name.
Especially for the domain name itself, this is a viable option if you plan on keeping your online business but are rebranding. The domain is a digital asset and as such can be appealing to different interested parties.
For example, the largest global social network Facebook paid over $8 million to acquire the “FB.COM” domain name.
Professionals use certain metrics used to calculate the value of a web address, such as its age, primary keywords, and historic sales.
Factors that increase the value of a domain name are brand or product name, high-ranking search terms, or a witty saying, though keep in mind that trademark infringement is not a good option.
Actually, you might be surprised at what your domain could be worth. Perhaps there’s a business willing to pay for your URL because it is a perfect match for their marketing campaign for a brand or product.
Visitor worth and customer value are defining factors
Considering we are still talking about selling the website, I have to stress that visitor worth and customer value are very important. Conversion rate statistics show that you can track how much traffic your site gets per month and translate that into a monetary amount.
Essentially, divide the website profit with the number of unique visitors over a quarter or year time and you will have the customer value numbers.
However, the best way to do this is by using Google Analytics or a similar online tool that will help you track different stats about your site and break them down for you with graphs and dashboard presentations.
Finally, if you’re able to identify that a large portion of your site traffic comes from email and/or social media, then your subscriber list and followers become assets of value as well. This means they can influence the final worth of your website as a result.
Even if you are not thinking about selling your website, an estimated value of your site can provide you with crucial information that can influence you to keep investing more or look for a more profitable venue for a long-term engagement.