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Questions created by XSMedia
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How do you value a site that generates no income before it's sold?
Hi, I'm currently creating a number of sites which target the wedding market. Each site is localized and specific to a niche within the wedding market. The intention is to create the site, rank it in the top position of Google and then sell it to a local business within that niche and area. The problem that i am having is that I don't know how to place a value on each site. I have factors taken from Google (using Market Samurai) so I know the broad and phrase match traffic details as well as the Google PPC average prices. My initial thought was to use the Google PPC price and multiply that by the number of organic visitors the site would receive if it was ranked #1 on Google. I appreciate that the PPC figures may be higher than what an advertiser would actually pay per click so I conservatively halved the Google PPC figure given in Market Samurai. Is this a good way of valuing the site or do I need to look at the value per customer to the business that I am trying to sell the site to and work from a conversion factor based on the number of visitors that the site would receive. If the site received 500 visitors per month and 5% of those became customers multiplied by the average profit per customer - that would give a monthly value of the website. I am very unsure as to what the best approach is here and look forward to hearing any advice and ideas from fellow members. Thanks, Michael
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