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How To Sell A Website - Part 2
Published: Sunday, October 03, 2004


Establish a Reasonable Price for Your Site

  • A Site's Value to Buyers:

    These days most websites are valued by the number of visitors they attract. One common yard stick is your domain name is valued at $10 to $30 per hit per day. If 1,000 people land on your front page each day, your domain could be worth $10,000 to $30,000. Another optimistic way of looking at domain values is each unique visitor you get over the course of a month is worth $250. If the visitor clicks to a second page on your site, her presence is worth $500. By this measure, a site getting only 10 hits per day could go for $15,000. This strategy is a lot like the way traditional businesses have always been sold. The more customers a store has, the more it is worth to a buyer. That is a pretty solid way to value domains. It is a model that is likely to be around for a long time to come.

    Here are some of the main questions a typical buyer will ask him or herself when considering whether or not a website is worth purchasing – and at what price:
    1. Is the site making any money? Is there proof?

    2. What is the potential for future profits?

    3. Does the site have traffic? Is there proof?

    4. Is the site attractive/well designed? Is it functional and user friendly?

    5. When was the domain name registered?

    6. How is the site ranked with the major search engines?

    7. What does is take to maintain the site? i.e. hosting fees, content addition, promotion, etc.

    8. Why does the owner want to sell the website?

    If you’ve purchased a unique domain name with a great deal of potential value, it may not be necessary for you to have an existing website in order for you to sell your domain name for a profit. Typically, domain names will sell based on its performance in four key categories:
    1. Commercial Development Potential – The ability of your domain name to be used as a brand, redirect, campaign address, etc.

    2. Recognition – The relevance of your name to the market and how easy it is to remember.

    3. Length – In most cases, shorter is better. However, a longer more obvious name can sometimes be more valuable than a short classified-ad contraction style domain.

    4. Extension Value – This refers to the .COM part of your domain name. Currently .COM names still command the highest values followed by .NET, some national domains (such as .UK) and .ORG names.

  • Pricing The Site Correctly:
    Unless you are a true domain name expert, we strongly recommend having your site professionally appraised. In fact, this is probably one of the most important steps you can take towards ensuring a successful sale of your site. Appraisers are professionals and experts in their field, and they have the means and methods to conclude what your domain name is worth. As we mentioned earlier, if you place an exaggerated price on your name, potential buyers will be scared away from making a reasonable offer. If you undervalue your name, you may end up kicking yourself when your newly sold name rakes in millions – for someone else. Furthermore, an appraisal is a very handy thing to have when buyers want “proof” that your name is as special as you claim. In the end, it is an exceptionally valuable asset, available for a very small price.

    For information on UK Website for Sale’s professional appraisal services, visit: http://www.ukwebsiteforsale.co.uk/appraisal. We offer a 20+ page Website Appraisal that can dramatically increase the value of your website. No one on the Internet offers a more complete or cost effective Website Appraisal, and certainly no one offers all the extras we do that are included for FREE!
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