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Joined: 2015-02-05

You may be looking to purchase a website, and you want to get the best deal, while still offering the seller something they are willing to consider. Where do you begin? What are the proper ways to figure out the amount of a website’s worth?
There are several factors that play a part in the total website value:
• Money – what is the annual income
• Traffic – how many viewers does the website receive regularly, and whether or not they are active viewers
• Automated systems – systems put into place that will continue to spark interest in the viewers, and continue to bring traffic to the site.
• Existing contracts – what contracts are in place that will still be there once a site has been acquired and will those contracts continue to make money
Let us explore these factors further to better determine how much value the site worth is.
Money is always the key factor. A potential buyer is not going to care much about potential, they are going to only be interested in paying for what they can start making back. Determining if a site worth is great depends on what they are making annually. If a website has systems in place to continue to grow and generate income on its own, that is always the highest possible outcome. But it also makes it tricky to come up with the best offer.
If a website makes $100,000 annually, you could offer twice that, yet, most sellers will feel that there is potential to future income and will want you to see that and offer more money. But you can only determine a site worth what it is currently making. And sellers will always overvalue their website. You will need to find a middle ground.
Qualities that make a site worth more include more than just the income. A website is going to be worth more if there is high volume traffic constantly looking at the website. A website with email lists and well generated SEO practices will have dependable traffic that has a bigger potential to grow. Then if the website has email lists in place and other ways to constantly communicate with the audience, makes a site worth more and it will make the website more reliable to continue making revenue in the future. Email lists and other automated processes are always worth more, for they take quite a bit of time and know-how to set up.
A website that has existing contracts with suppliers and automatic sales is also going to increase the site worth. Those are also bonds that are created over time and proof that the website has integrity that other companies are willing to trust their product with. These bonds are almost as important as the traffic because they show a reference from another site to this website. Plus, they usually allow the potential for continued business together, if not growth while providing part of the existing revenue.

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