Valuing a Website Before You Sell :: Sell Websites Buy Websites

Valuing a Website Before You Sell Reprinted with permission of VotanWeb.com There is probably no part of the buying process that worries a potential buyer more than overpaying for a website. While this is understandable (who wants to pay more than something is worth), it has more to do with misinformation and one's total approach to buying a website than it does to being an expert at appraisals. The truth is, value is completely subjective. After all, what one website may be worth to you is entirely different from what it is worth to the next person. While there are cases where people may not negotiate the best price possible for a good website you must know that no price is cheap enough if you buy the wrong website. In time, a good website will always justify the purchase price whereas a bad one may not ever allow you to recover financially. What is Value? In a nutshell, value must be measured by what you are getting in return for your money. You have to equate the purchase price against the benefits you will derive over the term in which you can realistically expect to own the website. As an example, you cannot simply measure the purchase price against the income that you will derive from a specific website. What about the daily enjoyments you will get from being your own boss? Or, the sense of accomplishment you will feel from building something? Maybe, it's the gratification that you will get from contributing to the lives of others (i.e. employees). Perhaps it will come from knowing that from the toils of your labor you have been able to provide certain things for your family that you could never even consider if you were working for somebody else. A good website will provide abundant rewards for you so in order for you to truly measure a website’s value you have to consider all of the benefits that you stand to gain. Also, you must factor in what you could never have achieved if you don't go into business for yourself. Think of it this way: the average person takes 30 years to payoff a mortgage and 4 years to pay off a car. Neither one of these will pay you a salary. While they both have their benefits, neither one comes close to what you can derive from a good website as far as overall benefits are concerned.