Determine the Value of a Website

Strategy Lab Comments Off

Determining the value of a website is not always an easy task. There are so many variables that go into the equation that it can get a little confusing at time. A general rule of thumb is that a website is worth anywhere between 18 – 24 times a company’s monthly revenue minus your expense and plus your development costs. But, here are some other factors to consider.

The age of your domain is definitely something to consider. The longer the site has been around, the more trust search engines put into it. Therefore if you have a site that is 10 years old, it’s worth more than one that is 10 months old.

Another factor is how many back links a site has and the quality of these links. Links are also seen as a source of trust by search engines. Sites with high quality links tend to place better in SERPs so a site with more quality links is worth more than a site with lots of low quality links or one with few or no links at all.

You should also look at how many active emails a site has on a mailing list as well as what kind of community if users it has. If a website has a large mailing list or a big community of users then it’s worth more to a buyer because it has a built-in database.

To show an example of this formula we’ll use a site that has monthly revenue of $300 and is 5 years old, but doesn’t have any top 10 rankings. Let’s say the monthly expenses are $50 and the so the net income is $250. So 24 months multiplied by $250 equals $6,000. If you add in $5,000 for development cost with some age premium you’ll get a  $12,500 valuation. However, at the end of the day your website is only worth what someone else is willing to pay or it.

Some tools that can help you appraise the value of a website are Alexa, Overture bid tool, a keyword tool, the site’s log files and financials. You should also consider the cost of replicating the website when appraising it as well as how much qualified, relevant, targeted traffic the website gets.

Twing.com Launches New Features

Web 2.0 Tools Comments Off

A new search engine dedicated solely to finding information within forums and communities, Twing.com recently launched new features that are said to help brand managers gain insight into company and product discussions.

General Manager Kevin Shea had this to say, “Our Saved Search and Buzz Graph products were created for our users. And they also have a lot of value for anyone tracking brand conversations.” These Buzz Graphs allow a visitor determine the popularity of a range of terms within a community space online. You can also filter terms by category and then share those results. This is fun and interesting for an average web browser, but for a brand manager it offers insight into what’s being said about different products and companies.

Twenty-eight percent of U.S. consumers read online forums compared to 25% that read blogs according to Forrester’s North American Social Technographics Online Survey, Q2, 2007. Additionally, 18% of those contribute to forums, while 14% do the same for blogs. A lot of online conversations are happening in forums.

Twing offers multiple search options plus advanced filtering and sorting tools so people can effectively search forums in ways not available until the advent of Twing.com. The company also seeks to build even more awareness of the online forum space. Twing.com is easily used by entering search terms to quickly locate specific discussions and/or topics. Visitors can register – for free – to become a Twing.com member, participate in Twing.com’s forums and take advantage of current and upcoming personalization options.


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