How To Value a Pagerank 5 Website
Here is a video using our tools.
Directory Revenue Scams: Buyer Beware
Don’t buy a directory without proof of earnings. Directory owners have the ability to play an interesting game using self-generated revenue. Here is how it works. They build a directory and add a few sites, then let it get indexed by Google. They link to it from a few of their existing sites, or buy some links on high PR sites so that the PR of the directory gets up to a 4 or so. (It’s tough to sell a directory without at least a PR4) Then they buy $300 worth of links in the directory for themselves and their existing sites. The money simply flows from one of their paypal accounts to another, so all it really costs them is a few dollars in transaction fees. They then post the directory for sale and say it had $300 in revenue last month, which isn’t exactly a lie. You bite. You buy. You pay a couple of grand. You make $40 a month. It’s a pump and dump website scheme at it’s best. Buyer beware.
The Best Way To Get a Good Site Valuation
The best way to get a good valuation for your website is predictable and stable monthly revenue. Website valuations are discounted because future gains are not very predictable. Google algorithm changes can halve your monthly traffic and corresponding revenue. Of course, they could also boost your ranking and double your revenue. By showing 6 or more months of consistently high revenue, buyers are willing to pay a premium for that earnings power.
Welcome to Value on the Web
About a year ago I began buying and selling websites. I noticed that people tended to use common multiples like 10-12x monthly earnings to value websites, but ultimately the value in something is the discounted value of all future cash flows, and website monthly cash flows are easy to manipulate. I got burned a few times, and I got some great deals that made me decent profits. But overall, I realized that the 10-12x number was wrong.
I began keeping a spreadsheet of websites that sold at Sitepoint. I tracked pagerank, monthly visitors, monthly revenue, and final sales price. Eventually, I got curious and started running regression analysis on the data. I found some interesting patterns, and found it useful to analyze outliers to see why they broke the pattern. I discovered ways to add value to my own sites. It was very very useful. So useful that I built a website to analyze it all. I don’t know if anyone else is as into this as I am, but I figured I might as well share what I’ve created with the world and maybe make a little money from all the work I’ve done tracking this stuff. The final result is Value On The Web. I hope you like it.