Valuing a website

[dashu1]

I know this has been done to death, so forgive me for asking

Suppose you hypothetically had a website that was No1 in google uk.

It hypothetically earns you say £4500 per year from google adsense & a bit of other stuff.

Suppose also that a company in the same industry is currently spending £1500 - £2000 on google adwords per month (£18K to £24K per annum :shock.


How much would that website be worth to them?

If they buy it they are no1 & can drop a lot of their online advertising costs - would this have some bearing in what you'd ask for this hypothetical website?


Thanks!

 

[bb99]

It would be relevant to the negotiations yes, but the problem is that being #1 in Google is not necessarily sustainable. They could change their algorithm next week and your site could never be top again. That's the worst case of couse.

 

[accelerator]

1) How much would that website be worth to them?

2) If they buy it they are no1 & can drop a lot of their online advertising costs - would this have some bearing in what you'd ask for this hypothetical website?

1) In this scenario, it sounds like a lot more to them than it is to you, because they are able to monetise the website better.

2) Yes of course. If I had a good idea of what the number 1 slot on Google would be worth to them, I would set my sale price accordingly.

Does that help? I think it's important to be reasonable when setting sales prices but you have to do your research carefully to know what reasonable is, but make sure you don't underestimate your sale price!!

Rgds

 

[dashu1]

1) In this scenario, it sounds like a lot more to them than it is to you, because they are able to monetise the website better.

2) Yes of course. If I had a good idea of what the number 1 slot on Google would be worth to them, I would set my sale price accordingly.

Does that help? I think it's important to be reasonable when setting sales prices but you have to do your research carefully to know what reasonable is, but make sure you don't underestimate your sale price!!

Rgds

Thanks Guys.

The point about making sure you don't underestimate the price is something I find difficulty in - it's kind of a subjective issue it would be so much easier if there were a formula you could apply to it

With the numbers above have you got a gut feeling or rule of thumb about where the price should be? £6K, £7K, £2.50?

Thanks!