Does anyone know of a great website price evaluation software tool? I have seen and used a few but don't feel they are very accurate.
Does anyone know of a great website price evaluation software tool? I have seen and used a few but don't feel they are very accurate.
sharkflip, may I ask why you want a tool to value websites rather than doing it manually? Would you rely on the output of a tool to decide how much you should pay for a site?
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Are you just looking fr a tool to give you an idea how it should be priced? I know it can be difficult in any business figuring out what you should pay, and what you should charge for things.
I totally identify with that. As an artist, it is hard to put a value on your work. You don't want to price yourself out of business, but you don't want to undervalue yourself either. I can see how valuing a website would be similar.
I personally don't have a lot of experience in that arena, but maybe someone else can shed some light on things they look for in a site that add perceived value to it. Is it platform, design, color scheme, graphics, code, hosting, keyword(s) or simply age (PR rank)? I'm interested to see the responses.
Jim
You won't be receiving a simple answer, as the perfect website price evaulation tool cannot possibly existOriginally Posted by sharkflip
Businesses are sold for multiples of earnings, taking into account the various business metrics. While valuation of artistic works would be difficult, a similar answer exists. The price that can be obtained will be based directly upon the amount a buyer is willing to pay. The query in the OP, however, appears to be more along the lines of business valuation and not product pricing.
JimWaller (July 3rd, 2012)
Ken,
I realize I was "comparing apples and oranges", I was just saying that "valuation" of any sort whether for a single product or a business as a whole can be tricky. As much of this forum is geared toward buying and selling sites, I was expressing my curiosity at the process and metrics involved. If you look at the first sentence of my post, I asked if the OP was looking for a tool to give him a ballpark idea of valuation.
My mention of "product pricing" was only a personal story to illustrate sympathy for the challenges of valuation as a whole.
Thank you for answering my call for someone to shed some light on the metrics involved. The two threads you shared should be helpful. Thanks.
Jim
Wow I didn't get any notifications in my email box. Had no idea I had so many answers posted here. I know there is no Great way to valaue a website, however an effective automatic tool would at least give someone an idea of value. For instance when selling a home you look at the homes in the nearest area, bedrooms, sq footage etc, and it calculates to give an idea of value, and Zillow.com uses past sales as the basis of future sales. Thre must be some way to value a site with sales of past websites, analyitics, PR rank. Traffic, and income from the site that would come up with a basic idea. Perhaps there is not enough website sales to make an accuate assesment, but there should be some basis of value that can be discoved through an automatic tool.
sharkflip, the problem is that the method that works for houses won't work for websites. With houses the influencing factors are location, sq footage etc as you say so comparisons are easy and much of the real estate market works valuations on "comps". However, with websites the PR, traffic etc., are not the main influences. The #1 influence is net profit ...and that's not a publicly available figure. Furthermore, it's not easily discerned from sellers' claims. Each buyer analyses the site, the figures, the amount of time required to run it etc., and comes to his own calculation of what the net profit is likely to be.
A better comparison that real estate is businesses for sale. When businesses are sold their value for comparison purposes is calculated as a multiple of net profits. For big, public companies the figures and multiples are known. For small private companies the figures are not available to the general public and the same problem exists in this market of lack of data for comparative pricing.
When I did that big article on website valuation for Sitepoint - which is still probably the most read piece on valuation - I provided some graphs and figures on the multiples that sites were selling for, but I couldn't go on the gross figures claimed in their auction. I had to meticulously examine each one and arrive at a net profit figure. If you're happy to go with gross profit, you're in good company as Justin from Flipfilter claims that gross profit provides a good enough figure and that's what he uses on his flipfilter site.
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KenW3 (July 18th, 2012)
The simple answer is your business ( or in this case Website) is worth what someone else is willing to pay for it.
No "Tool" buys websites or businesses, some give a insightful indication of price or perceived market value and some just make up figures and graphes and fill it with general stats.
If you would like an honest appraisal on what your website is worth, I am sure there are plenty of members on here who can give you a educated indication.
As for calculating "Corporate Numbers" it is highly unlikely your website/business will be brought by a Bluechip or Corporate client unless you have mass scale or some form of IP/Trademark which provides strategic benefits to the client. Don't forget the basics of a website can be replicated in hours regardless of if you have X hundred Million behind you or not..
All the best on your journey..
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