How to Calculate the Price to Sell your Website For
There are many factors to consider when attempting to come up with a fair market value for your website. It is important to keep in mind that sometimes all it takes to sell your website for your highest expected price is to find the right buyer. A little patience can really pay off it means the difference between selling at a low price to one of the first buyers who happens along or waiting it out for the most motivated purchaser who has the strongest desire to own your website to come along.
The first thing you will need to do as you begin the calculation process is to add up the total income generated by your website each month. This means you should take into consideration every single ad you are paid to display. Include even the smallest amount of revenue, like if you are paid for your tweets or sell links on your website. If you write reviews, add in the profit you make from that. If you sell a particular product line, make sure you average your usual income from customers visiting your website and making purchases.
Every little bit of income is important to your figures when calculating an asking price for your website.
However, it is also of vital importance that you are honest and fair in calculating how much revenue your website generates. While it may seem easy to just add in a few extra digits here and there to increase what you can expect to make off of selling your website, this is very bad practice. Never exaggerate your monthly income in your calculation.
The next step is to figure out your exact expenditures for any given month. If you pay a professional web content writer to search engine optimize your blog posts, figure this into the numbers. If you purchase ad space on other popular websites or provide a salary to an editor or web designer, you should total this in as well. Include services that you pay for, such as web hosting or storage space for your website. Every last detail of what you spend to keep your website current and popular should be reflected in the figures that you come up with. However, you may leave out things that you only buy from time to time. This figure should be an average and reflect only the usual cost for keeping your site up and running.
Next, you should get out your calculator. There are a couple different variations of the formula for determining the fair asking price for your website. One popular formula is to subtract your annual expenses from your annual revenue, then multiply by two to come up with a price. This means that your buyer will be expected to put out enough money to equal about twice your yearly profit margin. If you have correctly and honestly presented all the related data, the price that this formula generates should be the fair market value of your website.
Finally, make sure you are presenting everything in simplest form. A potential buyer may back out or be scared away if the data is unclear or overly complicated. Present your revenue and expenditure figures in a concise, simple manner to ensure you don’t turn anyone away from purchasing your website. If someone knows exactly what to expect when they take on your site, they will be more likely to pay a higher price for it.