What Price To Pay For A Site?

Recently, I was contacted by a business associate asking for my help to price his website. There are so many factors that must be factored in when establishing a price with the buyer carefully examining potential income, administrative costs, and return on investment when tendering her offer.

Monthly Income Is A Significant Pricing Factor

I have found sites listed for as much as 12-20 times the monthly net income average, with 6-12 months also common. This means that if a site is making $400 per month after expenses it could sell for anywhere between $2400 and $8000 based on this formula.

There are some other considerations to keep in mind, intangibles that can determine the price:

• Age of Site — Search engines tend to respect older, more established web addresses.

• Page Rank — Although Google has wreaked havoc with this tool of late, it is still a fairly good measuring tool for any site.

• SERPs — If you dominate the search engine results pages (SERPs) for certain key words or key word phrases, this will add value to your site. Some buyers will only consider Google SERPs, while I like to look at Yahoo! and maybe MSN.

• Is it an Authority Site? — If your website is recognized as an authority for your particular topic, you should be able to command the upper end of the price range.

• Net Income after expenses — Domain and hosting costs should be subtracted plus any advertising or writing expenses required to maintain the site.

• Time I must spend on site — This can be the most difficult thing to gauge: will you be required to spend “X” amount of time on the site every week or can it pretty much run on automatic pilot? High maintenance sites should be discounted heavily.

Use Sitepoint To Market Your Site

Making a decision to purchase a site should not be taken lightly especially when you are talking about paying thousands of dollars for the blog, website or forum. Personally, if I were to sell a site, I would turn to Sitepoint, a webmaster site which I successfully used in 2006 when I sold the Aviation Employment Board and this year when I sold several other websites and blogs.

Happy marketing!

How I Found You Online

From time to time I am asked by visitors to this blog how I found them. Usually, their visit here is preceded by my visit over there. When asked I reply personally with the details, if known. Whatever other comments about their article or site they want from me I’ll share that information with them too.

Well, just how did I find you? Let me count some of the possible ways:

• Since making this blog more comment friendly and signing up with two “do follow” or “I follow” communities, I will often visit those bloggers who are part of these communities to see what they are all about. If there is something of interest to me, I will stop by, perhaps leave a comment which will link to this blog, or you may simply see my mugshot appear on your social network widget.
• When someone joins one of my MyBlogLog communities, I try to stop by their website or blog as soon as possible.
• I frequent Digital Point mostly to jabber (screen name: MattKNC) and I occasionally visit Sitepoint (screen name: thearticlewriter), especially when I have something to sell.
• I will read what many of my freelance writing contemporaries have to say on their blogs. When I discover someone new, I like to visit that blog too.
• When I use StumbleUpon (screen name: MattKeegan) I will stumble through a particular subject (such as internet tools) or I will stumble a friend’s pages. When I find something I like, I’ll stop in for a longer visit and leave a comment (or a thumb’s up) from time to time.
• I am fairly new to BUMPzee (screen name: MattK), my name is still with MySpace and Spicy pages, and I just this past week had my account approved for BlogCatalog (screen name: MattK).
• I plan on joining LinkedIn eventually, but I think I’ll sit Twitter out.

Oh, there are times when I randomly find someone’s site through Google search. Yes, despite my reliance on social networks these days, I still will use Google to help me find something online which may take me directly to your site.