If you are running a website it has a dollar value that is retained and can be grown a certain number of ways. A website is an asset that carries a value. The overall dollar value of your site is determined based on the following factors:
Traffic – depending upon how much traffic is visiting your site plays a major role in the value the traffic is bringing to the site. Website traffic and the amount of traffic coming to a site determines how much conversion and activity the site is seeing in sales. A good rule is the more website traffic the more valuable a website is overall. This is why Google is the number one valued website on the web because they have the most traffic.
Earnings – how much the website is earning valuates the site on a business level. People are willing to pay more for a site that is earning money of course and this is why the value goes up for a website business that is earning more. A basic rule again is the more monthly net earnings, net meaning after expenses, the more valuable the site is in terms of a dollar number. When listing sites on auction the earning value also brings more activity to the auction and potential for higher auction sale because everyone is interested in purchasing an asset that is already established and making money, rather than doing the work from scratch themselves to get it to that point.
Age – website age is important. The older the site the more it is technically trusted on the search engines although this is not always the case. The age also related to how long has been setup on the same hosting servers and web design platform as well. If you change host or platform running the site on the age of the site is effected and started over. The age of the domain is also another factor. Purchasing your domain in your domain registrar for more years tells search engines the site will be online longer term and potentially helps site search rank.
Development Cost – websites are valued at different levels based on how much it has cost to create the site. Is the site unique? Was it created from scratch or launched from a template? These are questions that come into play when valuing a site. If someone spent ten thousand dollars to develop a site of course it is more valuable than a site that costed fifty bucks to get online, it just makes sense.
Uniqueness – many websites nowadays are copied and this devalues the site. The more unique and creative the website business the more it is also valued because it is bringing something new to consumers that has never been offered before.
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