How to Appraise a Website

The internet is always evolving and changing.dollars, which is not too bad. If you had to spend ten
Therefore, it can become difficult to appraise amore of that and are only increasing your profit by a
website properly as trends change. However, therefew more dollars, then you have what I consider to be
are constant factors that you need to take intoa low-value website. Basically, if you are spending
account before deciding to sell.almost as much as you are making, it may be difficult
First off, revenue is probably the biggest factor thatto have the buyer follow your same routine. Many
comes into play. If your website is not making anybuyers will stray away if they do not have the funds
money, then it probably is not worth very much.to continue the same marketing plan on top of the
However, if it has been making some then it should bepurchase price.
worth a fair amount above what it is making.Last, your traffic should be of value too. This is
Second, you will need to take into account how longparticularly the case if you have high quality traffic
the website has been online. More importantly, if youwhere a good portion of the visitors are making
are making money, how long has it been churning apurchases. No one will ever have 100% of their visitors
profit? If it only made money last month but it hasmaking purchases, but I would consider 10% to be very
been online seven months, then you should be realisticgood. The benefit to potential buyers is that they
that the site probably needs to grow more to berealize that you have a valuable product and not too
worth much.much competition. Therefore, the need is simply adding
Third, you will need to evaluate your monthly expense.to the existing targeted traffic.
Assuming you made a profit last month of twenty