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What's the rule of thumb for estimating a site's worth?

Discussion in 'Domain Names & Parking' started by loclhero, Oct 31, 2011.

  1. loclhero

    loclhero Supreme Member

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    I know there's a general rule of thumb for calculating what to offer for a website that has adsense revenue but I can't remember.
    Anyone know?

    For instance, if a site has $10/month in revenue and it's been doing that for a year or so, what should I expect to offer for it?
     
  2. Abstroose

    Abstroose Elite Member

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    The convention is 10 months revenue, I believe.
     
  3. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

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    Depends on a load of factors, so there's no "fixed" rule.

    Can vary from a few months up to a few years as a multiple.

    Generally speaking, Adsense sites with SE traffic tend to be very popular (especially at the low end of the market) so multiples are inflated. You'd probably be looking at 12-18x monthly profits (not revenue) for a small site. Under $5k, multiples don't really apply at all - so I would offer a few hundred bucks and see what the seller says.
     
  4. Mountaineer

    Mountaineer Senior Member

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    I'd see the age of domain & website. If the revenue/traffic is constant (or on rise), then 10 months revenue would be a fair estimate. If domain is premium then it adds some more value.
     
  5. bartgatsby

    bartgatsby Registered Member

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    Page Rank, SERP ranking, monthly revenue after expenses, authority site? and time invested on site.