What Does a Website Value Calculator Take Into Account?
A website value calculator takes into account a number of factors depending on the quality of the calculator. A website value calculator may take into account a number of the factors we will discuss in this article. However, because different calculators take into account different factors it is advisable that you only use the information they provide as a rough guide to trying to determine website value. Better yet, check that the calculator you intend to use takes into account most if not all of the following factors and adjust your resulting valuations accordingly.
The most important factor these website value calculators will take into account is the amount of traffic the site receives. This ties directly into the potential amount of revenue that can be generated from a website so is hugely important to the overall value of the site. This is simply determined by the amount of traffic the site receives on a day to day basis but can be more complexly determined to include the amount of returning traffic and lingering traffic as if high numbers of people return to the site or stay logged onto it each day the potential for revenue generation is increased.
Second, website value calculators take into account the amount of revenue the site actually currently generates. Simply this will be based on the current income the site generates on a day to day basis while complexly this will also take into account the type of revenue generated, whether it is direct or through advertising and it will analyze the figures over a longer time period, taking into account future projections. These complex factors are key to determining the long term viability of a website and should be a key component of website value calculations.
Finally a good website value calculator should take into account the website's search rankings and its domain name. Having a niche specific domain name increases the value of a specific website within that field. Search rankings determines the amount of traffic the site generates to a certain extent but also provides a good indication of where the site is getting its traffic from. If a site is ranked on the second page of Google you need to establish how it generates its revenue. A good website value calculator will input the advertising spend of the website as well to check that the profit margins on the website are as good as its revenue.
With these steps taken into account you should be able to choose the right website value calculator for you but remember you need to also ascertain the amount of work the website will require you personally to put in and identify the growth areas it potentially has.