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If you’ve built a niche website – or you’re thinking about launching one soon – then you should be aware of how to calculate its value. Like with most businesses, selling your website is one valid exit strategy. And so, you should be asking yourself: “How much is my website worth?”
The valuation process can be pretty technical, but we’re here to break it down for you! In this guide, we’ll talk about why you might consider selling your website and how to ensure that you’re selling it for the best possible price!
Why Sell Your Website?
Monetisation isn’t always the goal for every site owner. Some people create and maintain websites purely as a hobby or to share knowledge. However, building a niche website is hard work. And for many, seeing that hard work pay off with some income is a pretty common goal or marker of achievement.
Monetising your site through things like affiliate marketing or sponsored advertisements can bring in plenty of money, but on a fluctuating basis. Selling your website is a very different route to take, as it gives you a handful of cash all at once!
If you’re in need of a significant income boost, whether you want to pay off your debts right away, buy a house, or reinvest the proceeds in another business idea, selling your website is a great way to do it.
Others sell their website simply because they’ve run out of motivation or interest. The beginning stages of website creation is thrilling. After a few years of running it in a similar way, things can get a bit less captivating.
Not having enough time to maintain your site is another reason to sell. You may have found another job or want to start a different niche website, or perhaps you’ve grown your family and want to spend time away from work for a while.
And finally, some people want to sell their website because they have put all that they can into the site. If you own a niche website, you may eventually begin to feel as if you’ve run out of knowledge to share. Or perhaps you’ve improved it in every way that you thought imaginable, and are ready to let go.
Selling your website can also be tough. You have devoted months (if not years) of your time and your hard-earned money into it, not to mention your passion and creativity. It’s important to really consider whether you are ready. But remember, you shouldn’t hold on to your site just because of your past investments! Moving on can be beneficial for everybody.
There are a lot of reasons why somebody might decide to sell their website. One or more of these reasons may line up with your thoughts. Still, you don’t want to rush the decision. Before deciding to sell your website, you should ask yourself a few questions:
- Why am I selling this website?
- Am I going to regret selling this website?
- Is the money that I will make from selling this website enough of a gain to justify losing the income from ongoing monetisation?
- Am I willing to invest the time needed to go through site valuation and the time needed to ensure that I am selling it to the right person?
Take our Website Valuation guide as an example. This niche website that went through a valuation was worth a lot. But the owner decided not to sell. While some of it boiled down to financial reasons, many of them were due to the potential for greater opportunity.
Selling your website means that you might never know its true potential – something you can discover if you keep working towards it. Before you sell, you really need to think about whether you’re getting out of the game too early, or right on time.
If you feel confident that it’s time to move on and sell your site, then it’s time to figure out how much it’s worth!
Calculating Your Website Valuation
Calculating your website valuation is much easier than most people think when they ask the question of “how much is my website worth?” You don’t need to spend time going through your taxes with experts, spend money on consultations with lawyers, or shop around for months just to find out what you deserve.
The equation for learning what your website is worth is really quite simple: earnings x earnings multiplier = the asset value of your website.
But what numbers should you plug into this equation?
In this equation, we use monthly revenue as an indicator of value. So, calculate all of your sales on an average month. This will include all forms of monetisation, including affiliate marketing, advertisement revenue, product sales, and so on.
The multiplier in this scenario will be between 24 and 36. However, there are a few factors in determining your website’s valuation that we’ll take a look at below. For a low-end estimate, calculating using 24 is a good place to start.
Let’s say that your website brings in $500 in monthly revenue. Multiply 500 by 24, and you get 12000. This puts your website’s valuation at around $12,000.
As mentioned, not everything is as black and white as this easy equation. You may be wondering if your site is worth more or less than your equation based on various factors. We’ll explore them next!
Important Factors for a Website Valuation
Some of the most important factors that will help determine your site valuation include:
- Your website’s niche or topic
- Steady and organic traffic that comes from SEO
- Link building
- Unique products available for sale
- Revenue and expenses
- Market conditions
- The right buyer
Your Website Niche
Some niches are more profitable than others. These are types of sites that make it easier to sell products, pull in advertisement revenue, and grow traffic.
“What makes a niche so profitable?” you might be asking. Well, consider the niche of fitness and exercise. This is one of the most profitable niches ever.
Why? People trying to lose weight are often willing to try out new products to help them get there. This might include:
- Weight loss supplements
- Fitness machines
- Athletic apparel
- Food and cooking accessories
You can also sell fitness plans and diet guides. It is also an easy niche to market using film and video, which are all important forms of media in an online world where apps like YouTube and Tik Tok are booming in popularity.
There are also a lot of directions that could be taken with this niche. It could become a fitness website, a dieting website, a diet-specific website, and so on.
A few other incredibly popular niches when it comes to maximising earning potential include:
- Parenting sites
- Finance sites
- Pet blogs
- Cooking blogs
- Dating and relationship blogs and sites
Meanwhile, some niches are less profitable, which may mean a lower valuation for your site. These are the websites that have created a niche so specific that it’s hard to break out of, or those that are oversaturated with other similar sites that it makes it harder to stand out.
For example, consider the pet blog we mentioned above. A website that focuses on caring for animals, with various different tabs for each pet, could become very popular. You can target different types of animal lovers, from the common cat and dog owner to people with whole farms in their backyard.
However, if you create a website that is solely targeted towards people who own rabbits, you’ll find less success and may leave with a minimally profitable and sellable website. (NOTE: This is just an example. You may find greater success with a narrower niche like this too!)
Steady and Organic Traffic
You can have thousands of hits coming to your site every day from word-of-mouth or social media shares, but steady and organic traffic that comes from SEO (Search Engine Optimisation) can’t be beat when it come to the valuation of your site.
This type of traffic, “organic traffic,” is when your visitors are coming to your website from search engine results. For example, somebody searching “best diets to lose weight” on Google and finding your site result on the first page (and clicking on it) is organic traffic.
Other forms of traffic, like email, direct, referral, and social traffic, aren’t quite as valuable when it comes to site valuation. They’re still useful, of course – but SEO traffic takes longer to build and is worth much more in the long run as a result.
So, how can you boost your organic traffic? By continuing to push towards having great SEO! You can do this by:
- Utilising editing tools like Grammarly
- Taking courses on SEO through online learning platforms such as Skillshare
- Using built-in SEO tools like Yoast
Your success in building links is another important factor when it comes to your site’s worth!
Inbound links are when other websites add a hyperlink that points in the direction of your site. This could be them using you as a source, sharing your content, or promoting your site throughout their articles.
Successful link building is pretty tough. It requires success in the organic search department, credibility as a writer and a site owner, and depends on your site being a reliable place to go for content. You have likely put links throughout your own blog posts or site pages. Take some time to think about how you usually gather these links, and think about how you could end up on the list of somebody else’s answer to that question!
Your valuation will go way up if your site has plenty of credible places linking back to your website! This is partly because of how important domain authority (DA) is in your ability to rank competitive keywords and attract more organic traffic in the future.
There are plenty of places to go to find out if you have various backlinks. Ahrefs has an easy-to-use, free backlink checker here.
It’s a complicated process, but you can take a look at the short video below to get a snapshot into powerful link building.
Unique Products for Sale
Not all websites have products directly available for sale on their website, but many do. If you as a site owner and content creator have been able to sell unique products on your site, that can increase your odds of receiving a high valuation.
Having a strong e-commerce presence is a must in today’s highly competitive online world. The products that you sell (or provide affiliate links to) must have some worth to your reader. This might mean having products by highly favoured brands.
Having proof of product sales and high commissions will make you look favourable in the eyes of a buyer, and it will increase your overall revenue. So, your valuation will shoot way up.
Many websites sell their own products, from information products like ebooks and courses to physical products. It’s important to ensure that these products will carry over through the sale of the website. If not, you might have to take a hit in the valuation of your site.
Revenue and Expenses
The fact that your site’s revenue and expenses will become an important indicator towards your maximum valuation won’t be a surprise to most. After all, it’s the money that you’ve been dealing with throughout your blogging journey!
Your revenue is the income that you’re bringing in from the site. This includes all of the money you make, from advertising revenue to affiliate marketing income.
Your expenses are all of the costs associated with running your site. This might include:
- Your hosting plan
- Your domain name
- Your theme upkeep
- Paid SEO and other marketing tools
- Paid freelancers who update or run parts of the website
Let’s say that you’re pulling in $1000 per month of pure revenue from your website. That’s great! However, if you’re also paying $500 per month on expenses, you’ll be valued at less than someone who makes the same income and only pays $100 per month in expenses.
“Net margins” is the term that will help you figure this out. The equation to learn this number is simple:
Net margins = Net profit / revenue
Knowing your net margins and net profit are far more important than knowing how much monthly income is being generated overall. Since the buyer is looking for an investment, this will prove that there is money to be made regardless of how much money is being put into the site!
The range of net margins for site owners can be very drastic, but as a rule of thumb, you can expect an average of 20% to 35% for e-commerce site owners, compared to up to 80% for folks owning an affiliate marketing website.
The higher the income and lower the expenses, the better!
How is the general market faring for your niche, or for blogging as a whole? You can do everything in your power to make the best website. But, simply but, there is only so much that you can do if the market is bad.
Imagine running a blog that is centered around travelling. This is a pretty popular type of website. However, the desire for individuals to travel can be impacted easily, especially by world events. If somebody were to start a travel blog at the beginning of the COVID-19 pandemic, they might find that their readers aren’t that eager to learn about something that they can’t do.
On the flip side, people will be pretty eager to travel once it’s considered safe to do so in the future. So, a travel blog in a post-COVID-19 world will look much more attractive than before!
Markets are often unpredictable, but you can still get a pretty good estimate based on past competition. SEMrush offers some fantastic tools for learning about market competition – you can try it out here!
The Right Buyer
Finally, the person that is buying your site (or looking to buy it) will play a big part in how much your website is worth.
Is this somebody looking to buy your site, obtain data from your email list and subscriber base, and bring it to another website? Or are they planning on building the platform that you have already created and have plans to maximise profits?
Researching who is looking to buy can help you out. Look at how your site will directly impact their future success and use it as leverage to boost the worth of your site!
What is a Fair Valuation?
Now that you know some of the factors of what will boost or lower the worth of your site, it’s essential to figure out what is fair. After all, you don’t want somebody to lowball you and leave with less money than you’re worth!
You’ll need to spend some time looking through all of your income and earnings data. This is crucial to determining your worth. So, how can you do this?
The WeAreTheCurious Affiliate Report is designed to meet all of your data needs when it comes to marketing. Some of the key pieces of information you’ll be able to gather includes:
- In-depth reports on where revenue is coming from
- An overall site engagement snapshot
- Detailed data on when revenue has come in and how it has grown
- Lists of products sold and revenue generated per item
- Detailed ad publisher revenue metrics
- A monthly website value estimate
- A built-in profit and loss report
- Revenue in different currencies
There is a lot of data and reporting required when finding the valuation of your site. This unique report makes it easy to keep everything in one place. Take a look at the video below to see what the dashboard looks like and how you can best utilise it for your site.
The estimated website sell on value tab is a great way to determine what your performances have brought in terms of valuation. This particular report will base this data off of your average profit over the past six months.
Sounds pretty handy, right? Well, you can start using it today! Click here to learn more.
The way that you decide to sell your website will depend on plenty of factors, from how much you’re trying to sell for to what niche your site is in. There are online marketplaces that help you find buyers, like Flippa and Empire Flippers.
You should ensure that you’ve found a fair valuation before you start looking too hard for buyers. You’ll enter this stage of the site-selling process with more confidence and some reasonable expectations about what to expect!
“How Much Is My Website Worth?” Wrap-up
Think back to the first time that you asked yourself, “How much is my website worth?” Maybe you wanted to see some hard proof coming out of years of work, or maybe you’re desperate to bring in a few thousand dollars to your bank account.
Finding out how much your website is worth is invaluable for any site owner, even if you have zero intention of selling. You might be persuaded to based on the price, or you may dedicate yourself to working harder, creating a future goal of your site’s worth!
Take the time to decide why you want to sell your website (if you want to at all) and consider all of the important factors for a website valuation. Having a fair number in mind will make all the difference as you go forward with your journey!
Are you eager to learn more about boosting the value of your website after answering the question of how much is my website worth? If you’re disappointed in your initial valuation or know that you can bring that number up, take a look at our guide How I Built a Niche Website Valued at $217,522 in 2 YEARS! for some income-boosting inspiration!