If you want to master how to price website before you buy or sell, this article will definitely help you. Site flip business owners should have an idea of how much their website is worth before placing it in an auction. This will assist you to reasonably gauge how much to expect from the sale before flipping.

There is various website valuation methods used on the internet based on certain factors. But the most common of these metrics is the net revenue the website is averagely generating per month, the targeted traffic it receives, the age of the domain name/website, the technologies and scripts used in designing the site, the market niche the website is built, and so on.

The only difficulty I know which exist in how to price website is consistency amongst website valuation experts. For instance, as a webmaster, if you take a website to 3-4 valuation experts, you are sure to have 3-4 divergent values with wide margin apart.

To this end, the common saying that the value of a website is only what a prospective buyer is willing and able to pay becomes true.

Knowing how to price website is less cumbersome if your website has started generating monthly revenue. The simple formula is to take the last three months’ average income and multiply it by 3, 5, 6, 8, 9, 10, 12, 18, 24, 30 or 36 months’ income. The number of months is usually agreed between buyer and seller. For example, if I am selling website that earns me:

$200 –March,

$452 –April, and

$320 -May

I can safely price my website thus:

$200 + $452 + $320 = $972

$972/3months average = $324

Then multiply $324 by 5 months’ income to arrive at $1,620. This is the amount I should expect from a prospective buyer.

Where there is problem is when you are valuing a website based on traffic ONLY and NO revenue. The value placed on such websites is always subjective and mainly hinged on qualitative factors rather than quantitative. But you can do this using pay per click (PPC) cost info on your main keywords in the domain name/website.

Click Here to look at a guide that succinctly explains how to value a domain name/website.

That is essentially all there is on how to price website.

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