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Valuing a Website to Sell on Flippa

SoPlayNice

Valuing a Website to Sell on Flippa

June 24th, 2015 by in Tutorials

I sold a website on Flippa a few months ago and decided to do a little guide of the process I went through to put the website for auction and then the process of handing over that website once it was sold. Firstly though, how much should you sell your website for?

When I went into selling My Organisational Behaviour and My HRM Book, I didn’t have a clue about selling websites, I understood the concept of selling a website through auction and understood that afterwards I would have to carefully manage the transfer of domains, files and databases, but I didn’t have a clue about what kind of information I should present to the potential buyers or what kind of price to attach to my websites.

As there is no face to face interaction, selling a website seems a bit sketchy. From my experience with this sale, and my general user experience when commenting and scouting potential websites on Flippa, it is like any transfer of money, goods and services – Always be aware.

Valuing a Website to Sell on Flippa

One of the first tasks to selling a website, is having a rouge idea of what price to sell it for. In this case it would be what price to set a reserve at and a Buy It Now Price. I knew that I could look into the revenue it was making, multiple that by a certain amount of time and come out with a valuation from that, but I felt there might be a lot more to it.

There are hundreds of websites online which give you a relatively instant valuation of your website, so I tried a few of those.

None of them look too professional, so it was hard to know what to trust, but at the end of the day, by using a number of them it seemed like an average may be around the price I would want to sell it for.

Worth of Web – $238

Worth of the Web proved the most accurate with the earning projects per day, month and year. It also proved to be the closest to the actual selling price, so I’ll leave you to decide whether this is the place to value your website or not!

My Organisational Behaviour

Site Price – $1,283

The largest valuation and the only one I originally did when adding the website to Flippa. I knew it was too high and wouldn’t get the price, but it did lead me to starting at a Buy It Now price (BIN) of $750, mainly because I felt the websites had potential and I’d owned them for four years at this point, they were like my babies. In hindsight it was far too much for the amount the website was making each month, no harm in trying though!

Net Valuator – $738.94

A little too high and I knew this because the visitor counts and page views were slightly higher than Google Analytics and the income per day was too. That was the great thing about looking around though, it allowed you to see estimates on traffic and earning, whilst you knew the real figures and could come up with a way of matching up the results.

Site Worth Traffic – $147

A much more conservative valuation. The price is nearer than the ones which overestimated, but the earnings per day was well off. By now I knew that the value was above this and below the $738.94 which Net Valuator gave, as the income and views they both presented were near, but not quite there.

Average – $601.735

The average came out below the price I set for the BIN and a lot higher than what I actually received for the website. At this point it felt like doing the website valuations may have been a bit pointless. However, it allowed me to get an idea of how people value traffic numbers and what earning potential it creates. If I were to sell another website I would follow the same process, but accept that money of the numbers these websites produce are overestimates.

The website sold for $250 in the end, so take these valuations as you wish. If anything hopefully this post has highlighted some drawbacks to using services which can only look up numbers and not analyse the quality of the content, the code, the design or anything else which sets a website apart from others in the same niche.

In the next post within the series we will be looking into promoting the sale of a website.

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