How To Assess the Financial Value of Your Website

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It’s important to know the value of all of your business assets. But these days not all assets are physical, there are digital assets as well, and we’re not talking crypto-currency here. Websites, social media accounts, YouTube channels, and blogs can all hold a value in the current market. But how to accurately value these things can be difficult, so let’s look at some of the key considerations when we do this.

Does it Directly Bring in Revenue?

If the website is a direct revenue generator then this can make it much easier to value the site. If you can track purchases or subscribers this gives you a model of revenue and can see how much it is, and even when the busy and quiet periods are? You may also be bringing in advertising revenue.

Can Someone Else Operate it?

Is the site-specific to you? Some websites are easily transferable and require no more knowledge to make money than having basic business knowledge. Others are a bit more general but require some expert knowledge, such as a technical support service, for example. Then there are ones that are specific to just one person, if you have built up a blog giving your opinions and thoughts then the website visitors may be interested in only you running it, and it won’t be worth anything unless you stay on to work on it, this does happen though, take Martin Lewis, the ‘money saving expert’ as an example,

What is the Level of Organic Traffic?

Traffic is key and you can get an online valuation from an automated service based on this, and your search engine rankings. But there are two different types of web traffic, paid for and organic, and it’s the latter that is the more important when valuing a website. When choosing an SEO expert it can be wise to keep it local so they understand your market, for example, Solve are a web design company based in Cornwall, and really understand the need of a Cornish firm. It’s also good to ensure that the website is technically sound as slow or broken sites fall down the Google rankings very quickly, you can easily check your site speed to ensure it’s sound.

Who Would Buy it?

Are there a lot of people who may be interested in buying the site? Have you maybe had inquiries or offers already? You may have rivals that you could approach about buying the site. There are countless websites that you can offer your site up for sale through. You can also employ the services of a more professional broker to seek out buyers on your behalf.

How to Sell it?

How to sell the actual website is key to the whole process. Like anything else you need to agree on a fee and have the agreement drawn up in writing, you can do this simply by email correspondence or even get a lawyer to draft a contract if it’s a more complicated agreement. Once this has all been properly arranged then it’s just left to transfer the domain to the new owner, and the content, if that’s part of the agreement.

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