How do you know how much to sell a website for?

[rmueller]

Hi Folks,
I'm new here, and would like to say Hi! And, I am wondering if anyone can tell me anything about selling a website/domain? I curious how you would determine value of the site, the domain and all the stuff that goes with it. Thanks to anyone who has suggestions!
rmueller
:hi:

[ihelpyou]

Welcome to the forums mueller! :hi:

One place I know of is www.greatdomains.com where you can get an appraisel and list the site.

Other members here will be much more helpful as I am zero experience with this.

BTW, real good looking site!

[MazY]

Hi, Mueller and welcome to the forums!

Now there is a question. I remember reading a forum last week that specialised in nothing but the buying and selling of domain names. I have just tried finding it for you but to no avail. Yet. But I will.

I understand that the selling price can depend on many factors such as current hit rate, inbound links, affililiates, content and the actual popularity of your domain name.

I shalll try to find that link for you and post it. It will be far more help in this rather specialised area than I will be.

[Web Witch]

....:hi:

Boy there are so many factors to determine, I haven't pounder that thought yet. First you'ver got the name, then is the sited fully developed, relativity....:read:

WW

[ihelpyou]

Does anyone know of services out there that do domain name appraisels?

[rmueller]

Even more, This is what has me confused and having a hard time determining where to start as a selling point.

Not only is there the domain name, and the site, but I have some inventory, the merchant account, paypal account, etc.

Plus, I have approx. 350 hours of webdesign time in on the site, and our clicks are growing daily.

I average pretty good sales on the site, but since it is a side-line, I don't get as much time to promote it as I'd like, and it still keeps me busy! LOL!!:)

I do have a couple of individuals interested, and that's why I decided to look into evaluating the worth of it!

[ihelpyou]

I do know this. Be very careful to not cut yourself short. You have a great site. You have invested lots into it and it is fully functional and making some money.

You will be surprised as to what you can sell it for. Geez, your domain name alone is worth some money.

Do you have repeat clients? BIG bucks, if so. Lots of things go into it. You may want to consult a lawyer about it. Just be careful.

[rmueller]

Well, I'm not Walmart yet, but who knows?!?

Maybe with some more SEO!!

:cool: :cool: :cool:

So, I'm still debating even - don't know if I really want to sell yet!

[Web Witch]

....nice lookin' site, I don't know trends in clothing....hum-m-m-m-m-m. Good luck!

[ihelpyou]

Well, you certainly found the right place if you want to learn about the search engines. Don't know how well your site does now with them, but with a little study here and questions you could do even better than you are doing now.

[Mel]

HI Rebecca:

If you want a real time check on what domains are selling for currently, try http://www.afternic.com/index.cfm?a=sell where you can view a list of currently selling domain names and prices.

There are, as Doug mentioned, several sites which will do appraisals of domain names, but my experience has been that actual auction prices are far below the appraisals. But,a written valuation from a professional company is also a good tool when negotiating with buyers. I have used Domain Systems (http://www.solutionhome.com/appraisal.htm) before and they take into account such factors as traffic, profitability,etc. Their appraisals are also legitimate tax deductions

[ihelpyou]

Good link Mel, but are they just appraising the domain name? Do you know of services that actually appraise a fully functioning site?

I have found many that appraise names, but would like to know of ones who do the site.

[Mel]

Hi Doug:

Domain Systems appraisal does take into account the age of the site, traffic, profitability and other factors, but I would not consider it truly definitive as to the value of the company which owns the site. This would be a much more complex operation, and would best be done by CPA who could have access to the books and make a judgement on the value of inventory, frachises, goodwill, etc.

If I were selling a webstore as a going operation I would have an appraisal done by someone like Domain Systems, and crank their valuation into the CPAs valuation report, as many CPAs do not have the ability to make a judgement on the value of the website proper.

[ihelpyou]

Very good. Fully functioning sites should get an appraisel on the name and also consult a CPA.

tankx!

[Web Witch]

....do you really think you can find a GOOD CPA who knows the Internet?

WW:(

[Mel]

Hi WW

No I think not, that's why I suggest that the web side of things is done by a website appraisal company, and the business side of things by a CPA.

[Web Witch]

....but I wonder how long these website appraisal company's have been around and if they can truly judge one's worth in the Internet market as it is these days.

My .02 worth.

WW

[Mel]

Hi WW

Well I believe this particular appraisal firm has been around for several years, but as I noted in an earlier post you can get an idea of current selling prices of domains at the auction sites and they tend to be worth much less these days than the appraisers valuation.

For example I have a couple of domain names I bought a few years back that were appraised last year in the $10,000 range, but when I put one of them up for auction at that time there were no takers at starting bids of $4,000.

[MazY]

Maybe there is a market here just waiting to be tapped?

I would imagine that the complexities of trying to value a web site are huge? Just think about it for a moment...

How long has the site been alive?
Where does the main client base come from?
How much a client spend on average?
Is it in a very competitive market?
What affiliations does it have?
When is the domain up for renewal?
How many bedrooms does it have? (Whoops. Scrub that one.)
The list is endless really.

This is one of those things that I look at and think "nobody would ever be mad enough to have every aspect of their web site valued like that." The next time I think about it and decide to act on my belief that "there is always someone looking for a service, no matter how bizarre it may seem", some bugger has beaten me to it!

[Blue]

I have a few suggestions regarding this topic but first I'd like to state my opinion, which it is and nothing more, that a website (domain name, physical inventory, # of design hours invested, and all) to my way of thinking, is exactly the same as any other business venture that has the scope to reach the whole globe (whether it actually does or not).

As such, it would most likely be treated as such by anyone doing a business appraisal.

I highly recommend that you do as much research as you can (start by typing "small business appraisers" into your favorite search engine and perusing the relevant results).

You may wish to try researching through some of the methods below:

[list=1]
Contact your local branch of the SBA.
Contact your local Chamber of Commerce.
Contact the Business Administration Department at your local University or College.
[/list=1]

I also see the value in Mel's advice.

And here are some links:

The American Society of Appraisers (http://www.appraisers.org/)
The US Small Business Administration (SBA) (http://www.sba.gov/)
How to value a business ~ by businesstown.com (http://www.businesstown.com/valuing/index.asp)

I'm sure with enough time and effort, you'll be able to not only make a nice profit on your site, but also be able to come back here and educate all of us.

Best of Luck,

:cheers:

[rmueller]

Such great input from everyone! I can see I have my homework cut out for me if I decide to do this!
Thanks everyone for all your help!

You're the BEST!!:cool:

[Blue]

After furthur thought on this topic I've decided that there is probably one other aspect that may take top priority over all your other decisions in whether or not to sell your site.

It seems to me that the overall "metrics" of the net's health should play a major role in one's decision to sell or buy an internet property. In other words, how healthy is business on the net doing overall right now (or at the time one is considering to buy/sell)?

Your website is an investment and therefore depending on the health of the Internet economy one may wish to wait until such time as that economy is on the upswing. It should stand to reason that if the internet economy is doing well, then a potential buyer may put more value on your site as a business venture.

All this would depend upon of course your reasons for wanting to sell, but still, even if it's not your prime interest to make money on this venture, watching the general overall financial side of the internet would seem wise.

Any comments, folks?

[ihelpyou]

Great points Blue!!

To go even further, you may want to look at the particular market your site is in before selling it to see how the market is doing. Do this after the economy on the net is going up again. Your market may still be at a standstill while other markets are moving.

Very good!

[Mel]

Hi Rebecca and All:

While I agree with the point that a web based business is a business investment and should be treated as such, there are differences regarding web businesses that do not apply to brick and mortar businesses.

They may be roughly equated to similiar things in the B&M world such as Website traffic is somewhat analagous to the foot traffic in a Physical stores area, the name may be equate somewhat to the location, etc, but for the webside view of things I feel you still need to include in your valuation the opinion of professionals in the web area.

The entire picture what your site is worth to YOU, should IMO include input from web professionals, Business consultants or CPAs, and also your own knowledge of and gut feeling for your particular business.

Having said all this, I must admit that I do not practice what I preach. I could probably make a better income with a B&M store than with my web based business, using the same resources of time and money, but I like the web and its citizens, like to work when I want to, and Like the ability to modify my business model on the fly.

[ihelpyou]

It is getting to seem to me that thinking about selling your web site would be extremely stressful and lots of work!

Many things to think about and watch out for. Don't believe I will be selling anything anytime soon.

Not until I am offered about 3 million anyway. :D

[MazY]

I finally found the mysterious link that I was looking for.

Free Domain Name Appraisals.

The Link (http://www.domainnameforum.co.uk/)

It is UK based but there is plenty of good information there.