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.