How to Value a Website or Blog

[tom99]

Hi. I am new here.

I got here via a link from hooperman on the sitepoint.com forum. I had posted a question there which this post goes a long way to clarify. Thanks! The descriptions above regarding multiples and the importance of historic site income really resonate.

I have one question, though, with regards to websiteoutlook.com and sites like that, your description above kind of goes into it, but still: Leaving aside the $ evaluation part of these sites, how reliable are the traffic numbers they output? You say that the page rank numbers etc. are worthwhile, and I agree, but what about the visits numbers? I ask because there are so many of these sites now, and they have fairly different numbers.

I came across a site called t*****.com that has a "smart average" which seems to be that they take data from a few of those sites and then calculate an average. I ask because the numbers they have are very close to some of the google analytics numbers I know to be accurate for some sites I own. Would you say that an average taken from those sites is a good range to work with when trying to find out the visitor numbers for a site?

Thanks,

Tom

[hooperman]

Hi Tom and welcome to the forums

I believe that all those sites use Alexa to source their data, so why they show different results, I don't know!

[Clinton]

Hi Tom99, welcome to experienced-people.net

I agree with hooperman that these extrapolated traffic figures are not to be relied upon. Extrapolating traffic from Alexa started, I believe, with a site called sillyjokes. Many of these traffic estimator sites work off the Alexa ranking and given that many webmasters artificially manipulate their Alexa ranks - and that Alexa has its own flaws - I wouldn't consider the estimates very reliable.

However, there are methods more sophisticated than Alexa. Some of the data suppliers to large corporates have tentacles everywhere and access to traffic passing major ISPs and junctions. They use sophisticated ways to collect and analyse volumes and destinations and can sometimes be scarily accurate, much more accurate than Alexa.

In addition to Alexa, there's Metricsmarket, Compete, Quantcast etc. Info aggregators like the ones you refer too likely use Alexa because they provide an easy API.

[Clinton]

Very clever spam tom99, but you've been rumbled. And banned.

[ClaytonL]

What a dolt.

[Clinton]

For those wanting to delve more into valuations, these are worth a read: Trading Multiples | Transaction Multiples | LBOs | Economic Value Add | Discounted Cash Flow

[Kay]

Good news and bad news:

Good:

Thank goodness for grave digging sometimes. I just found this amazing thread! Thank you.

Bad:

I couldn't see the balloon diagram properly. I'm just a little old lady with very bad eyesight. Is there anywhere to see a larger version of it, please?

Don't tell me there's something already there and I missed that too.

[Clinton]

Thanks for letting me know about that, Kay. I've fixed the "click for larger image" to point to a larger version of the balloon.

[gribster]

Love the balloon and thanks for those links, Clinton - a far more in depth and businesslike approach to valuation than some of the wild estimates floating around Flippa.

I've stuck the balloon by my desk to remind me of what to focus on when building up new sites or improving existing ones and I'm particularly interested to see how little design impacts. This seems to fly in the face of the received wisdom that a few pretty graphics will get buyers flocking but I can see how serious purchasers will see beyond the surface.

[Kay]

Yeah, I like it too! Now that I can read it.

Thanks!