Calculating Website Value

[Ilya]

What formula would you use to calculate a website's value without knowing its profits or precise traffic?

Lets say all you know is, the alexa site ranking, which shows partial traffic if you are in the low 100,000's, you also know the pagerank of the website, and you know the amount of backlinks that website has.

How would you estimate the value of that website? What formula would you use?

same goes for the value of a link on that website.

 

[Joshua Farrell]

It depends on the type of site it is, and if it is a interest of mine. I would rate a site less if I didn't like it, than a site that I did like, more so depending on how active it was.

 

[Ilya]

No shit sherlock, depending on how much you willing to pay for the site, is how much you will pay for the site.

But im talking about how will a program or a bot decide how much the value of the site is worth.

 

[Joshua Farrell]

You asked what would people do to calculate the value of a forum or website, and I told you what I thought. 😛

 

[David]

A value is determined by the buyer. There is no formula or any set method. If I really loved FP and would do anything to buy it, I would offer some large figure. Then again if someone was interested in dogs for example, they wouldn't pay too much for FP.

Also, Alexa is inaccurate. I could have a PR8 forum, but with a very bad Alexa ranking. Then again, I could have a PR3 which is in the top 100 000. Alexa is affected by those who have the Alexa toolbar installed.

 

[8track]

You can go to website value calculators all day long and see error after error in their logic I don't really think this can been done much better than a real rough calculation. Most sites sell for 10 x 18 X their monthly revenue and the final sale almost always depends on negotiation between both parties so it's kinda hard to determine a value based on statistics it can only guess...

 

[Null-11]

What formula would you use to calculate a website's value without knowing its profits or precise traffic?

I wouldn't pay diddly-squat for a site unless I knew the profits AND traffic. That's like bidding on a brand new Porsche without knowing it has an engine.

 

[Grumpy]

What formula would you use to calculate a website's value without knowing its profits or precise traffic?

I wouldn't pay diddly-squat for a site unless I knew the profits AND traffic. That's like bidding on a brand new Porsche without knowing it has an engine.

Totally agreed, I wouldn't pay $1 for a site unless I knew the traffic and profits that are made from the site.