Calculate Website Price - The Most Important Factors

Calculate Website Price - The Most Important Factors - If you want to start your website on the Internet, the question often arises whether you should build the website yourself or buy it.

That depends on many factors, although I prefer to build my websites. But even then, at some point, you may come to the point where you want to sell a website.

This article is about what are the most important factors in calculating the website price.

Why Calculate the Price of a Website?

Calculate Website Price - The Most Important Factors

As already indicated above, there are 2 use cases in practice. On the one hand, many do not have the know-how, the time, or the motivation to build a website from scratch. These people prefer to buy established websites and keep them running.

But to buy one you have to know what a website is worth and how much it is worth to spend on it.

The other case is that you own an established website and want to sell it. Again, it's about knowing what price to ask.

Of course, this is a buyer's or seller's market. This means that the price to be achieved or to be paid always depends on what the other market participants offer or demand.

Nevertheless, it makes a lot of sense to calculate what a website is worth to enter a negotiation with realistic expectations.

The Most Important Factors

To be able to calculate the website price, one should know the most important factors for it. The price ultimately results from various aspects.

That's exactly what I asked my readers about. I wanted to know from them which factor they consider to be the most important in determining the value of a website. More than 500 readers took part in this survey and gave their opinion.

Here you can see the result:

What is the most important criterion for calculating the price of a website?

A mixture of everything (33%, 170 votes)
The previous income (29%, 145 votes)
The number of visitors (19%, 97 votes)
The possible income (18%, 89 votes)
The backlinks (1%, 7 votes)

Number of participants: 508 (1 vote)

Let's start with the individual factors.

28% of the survey participants indicated that previous income is the most important factor in determining the price. This is admittedly an important factor, after all, the website buyer gets their expenses back through this website income.

However, it's not that easy either. What if the previous operator starts selling links and earns good money with them? It would be too risky for me to continue using this source of income.

What if the seller has little idea about monetizing a website? In this case, you could increase your income significantly after buying it yourself.

So it is important to take a close look at how the website is monetized and assess the revenue accordingly. Above all, it is important to assess the future possible income. This is exactly what 17% of survey participants cited as the most important factor. That's how I see it, too, but these are only estimates.

19% of readers consider visitor numbers to be the most important factor in defining the price of a website. In my opinion, however, this is only partially the case. After all, not all visitors are the same. So I earn more with my niche websites than some video game blogs that have many times the number of my visitors.

The reason for this is simply the different monetization of topics and the different intentions of the visitors. I earn more on a small, very specialized website, where I offer attractive products and visitors are already interested in buying than I do on a blog about a topic that is difficult to monetize and visitors who just want free information. Therefore, one should analyze and classify the visitor numbers more precisely.

Only 1% of readers consider the existing backlinks to be the most important factor. I see it similarly, even if a good backlink profile is of course very valuable.

Most readers (33%), on the other hand, said that a mixture of everything is most important to them. I would go along with this because it doesn't make a lot of sense to consider just one single factor in isolation from the others. Only when you get an overall picture of the website, starting with the revenue and the traffic, over backlinks to the future potentials, possibilities, and other factors, can you make a well-founded assessment of a website?

You can get a more detailed overview of the individual factors in my article Calculating the value of a blog or website.

There Is Not One Price

And yet, in the end, I have to point out again that there is no ONE price.

On the one hand, this is because the various factors can be assessed differently. If you ask 10 experienced website owners how much they can earn from a particular website, you will get 10 different answers.

On the other hand, as already mentioned above, it is a matter between buyer and seller. Just because I have determined an amount X does not mean that my counterpart sees it the same way. For example, they can ask for more, but it can also happen that they want less money.

The determined website price is therefore only an approximation, which should help you to be able to argue better in a negotiation with a buyer or seller and not to be pulled over the table.

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