How to Appraise the Value of a Web Site for Sale

Whether you're buying or selling a website, the bottom line question is always the same: How much is this web site worth?

And while the answer is often subjective, there are some metrics you can use to arrive at a price that is fair to both the buyer and seller. Here are the most popular ones:

1. Value of the Domain Name

Absent any other monetizing features of the site, the potential value of the domain name can be the biggest contributing factor to the value of a web site.

A generic domain name that provides a perfect description for the product or service the web site buyer plans on selling can be worth thousands of dollars even if the site currently has no traffic and no placement in the SERPs.

Just look at the prices these domain name owners received in 2009:

Domain	Selling Price (USD)
Toys.com	$5,100,000
Candy.com	$3,000,000
Fly.com	$1,760,000
Auction.com	$1,700,000
Ticket.com	$1,525,000
Russia.com	$1,500,000
Call.com	$1,100,000
Webcam.com	$1,020,000
Server.com	$ 770,000
Luck.com	$ 675,000

2. Fully Monetized Sites

If the web site is already operating and generating revenue, a common rule of thumb is to set the value of the site at 3x the trailing 12 month earnings for e-commerce sites, and 6x the trailing 12 month earnings for content sites and blogs.

3. Sites with Development Potential

In between sites with hot domain names and sites that are currently operating and fully monetized is where you'll find the vast majority of web sites that have potential for buyers willing to dive in and make the site work.

Like "fixer upper" houses, these web sites often require a dash of imagination and a lot of hard work to get the cash flowing.

For sites like these, you need to place a fair value on each of these factors:

• Cost involved in replicating the current site vs. buying it
• Relevancy of domain name to the proposed product or service
• Current Alexa ranking
• Number and quality of backlinks
• Google and Yahoo rankings
• Spending patterns of the site's targeted audience
• Potential to add value through affiliate marketing
• Site overhead costs
• Chances of retaining current visitors after change of ownership

Can You Survive an Arm's Length Transaction?

The term Arm's Length Transaction is a common business phrase meaning "a straight-up deal where there is a willing buyer and a willing seller: No backroom politics, no trickery, and both parties to the transaction approach the deal honestly."

That's an important phrase to be aware of. Why? Because unless you have a domain name that's worth big money like the ones listed above, you're going to find that the real value of your web site is the maximum amount an honest buyer is willing to pay in an arm's length transaction.

How a Beginner SEO Course Can Benefit Your Business

When it comes to Search Engine Optimization, most business owners would rather hire a professional than attempt to do it themselves. And in most cases, that"s probably wise. But what"s not wise is not taking time to learn at least the basics of SEO before handing the reins over to someone else.

It doesn"t matter what kind of professional you intend to hire. Without a basic understanding of the work involved, you might not get what you expect.

Maybe you think you"re making things easier by telling the SEO provider to use their professional judgment to do what they think needs to be done to boost your search engine listings. After all, you probably don"t like people telling you how to do your job. So why would you try to tell others how to do their job, right?
Wrong! And here"s why.

For starters, you"ll eventually have to pay for the SEO provider"s services. More importantly, you"ll be turning your web site over to this provider and in the end you want things to be better than they were before.

I"m not saying you have to become an SEO expert. All I"m suggesting is that you get an understanding of the basics like the purpose, the terminology, the impact, and most importantly, what not to do.

With beginner level knowledge of SEO, you"ll be able to:
Have intelligent-sounding conversations when you meet with companies that specialize in SEO. You"ll be better able to communicate goals and know if your expectations are realistic.

Know when you"re being given bad advice; the kind that could cause Google as well as other search engines to ban your web pages.

Understand what"s being said in the proposals you"re given. Every specialty has its own "lingo" and once you know it, you have a better chance of choosing the right SEO provider.

Measure the progress that results from the SEO provider"s efforts. After all, when it comes to SEO, it"s all about the results.

And the best reason to take a beginner level SEO course?

The education will help you down the road when it"s time to do things like write or choose content for your site, pick a domain name, choose templates, and more.

In other words, the investment you make in education will pay off with a web site that actually generates revenue!