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+--- Thread: How do you calculate the value of a web site? (/thread-44979.html)
How do you calculate the value of a web site? - bee - 11-26-2012 08:41 PM
For ex. this one: http://graphicbull.com. Is there a way to calculate his value?
- Shanda Williams - 11-26-2012 08:49 PM
Go To http://www.webworth.info/
Enter the domain url below and this website value calculator will calculate and estimate the web site's worth and present a valuation, daily page views and daily ads revenue.
- just "JR" - 11-26-2012 08:49 PM
A website has four values:
- a DOMAIN value,
- a COMMERCIAL value,
- a DESIGN value,
- a CODING value.
DOMAIN VALUE:
The domain value is determined by the market value of that domain, that is, the price people are prepared to pay to get that domain.
A sub-domain has no value whatsoever.
A long domain name has little value
A short domain can reach very high value: "FB.com" was purchased by Facebook for several MILLION us dollars!
COMMERCIAL VALUE:
This is determined by the amount of business the site generates, as well as other factors, such as the number of unique visitors per day, the number of clicks it generates, the number of links etc...
All-in-all, its value can be estimated as 3 times the yearly PROFIT of the company who owns the site.
I.E.
A company website makes $1,000,000 a year orders from the website.
Their final year profit is, say, 15%, or $150,000.
The commercial value of the site is around 3 x 150,000 = $ 450,000
The DESIGN VALUE:
This is the cost paid to the DESIGNER to make the graphics of the site.
This HUGELY depends on the "fame" of the graphist!
A logo can be worth a tenner (most graphic "designers"), or a few MILLIONS (S. Dali made a beer matt design for $400,000 in the 1980's...)
So, the graphic value of a site is... well, whatever the client is prepared to pay! :-)
The CODING VALUE:
Initially, very little!
The building of a site may cost the coder as little as a few $100's.
However, as the site grows in fame, its coding value increases, as more and more features are added.
Nevertheless, you can estimate:
- static sites: $10-15 per page
- semi-static sites: $25-50 per page.
- small e-commerce: from $1200
- fully interactive site: from $3000.
- gaming sites: from $10k.
There are many sites who THINK they can estimate the value of a site.
None is correct: there are too many factors they do not take in consideration.
But here are some:
http://www.sitevaluecalculator.com/
http://www.webworth.info/
http://www.cubestat.com/
ALL are nothing but jokes...
Your site?
Domain value: not too bad. Maybe $50-$100
Commercial value: very little: the site FAILS the ESSENTIAL of marketing. Its purpose is not evident, I haveto search for products or services, I don't even want to bother to read ALL that is there.
It obviously has been designed by someone who knows NOTHING about advertising or marketing.
Design value: no more than a few $100's: it is way too confused. Too many "things" in the home page
Coding value: probably NOTHING. Too may external scripts, too many frameworks, too many CSS (you should only have ONE!). Crappy coding.
Not you want to hear, I know...
But that's how it is...
The web is a VERY hard place to do business, and there is no room for "half-ways".
If you run away after a slap on the wrist, the web is NOT for you.
Think about it: a pretty 19 y/o model will be squashed to death if she develops a pimple and her career willbe over.
It is the same on the web.
- pkpotential - 11-26-2012 08:49 PM
There is nothing worse than a design company with bad designs...