Whither you are flipping websites or you are a website owner, it’s so important to know how much a website worth before buying it, or how much your websites might be worth, especially if you treat it as one of your business assets.
I assume that many people in our niche -the making money online niche- would love to get a satisfying answer and a fair website valuation based on a trusted source.
Would you like to know how much your website worth?
Flippa’s website valuation tool uses their own marketplace data and other information provided by third-party metrics to evaluate websites.
How much is my website worth?
[box type=”important”]Before we get started with this, I just want to make sure you understand that most of valuation tools are calculation its data based on an algorithm, which leads to inaccurate results in most cases.[/box]
Flippa valuation tool provides two types of valuation, Basic Valuation, which can be done simply by adding your website URL, and Advanced Valuation, which require you to provide more information data about your website like unique visits number and monthly revenue .
Flippa’s Basic Valuation
The Basic Valuation is done based on third-party metrics like Alexa Rank, Google PageRank, Google Links, Domain Registration Date, SEOmoz Rank and Copyscape.
By testing several website valuations using Flippa’s tool, I found out that most results are too low, inaccurate by all means, and doesn’t make sense. In my personal opinion, the valuation results has nothing to do with the real worth of a website, even though it returns a price range (which is ridiculously big)!
So, I can simply describe Flippa’s basic valuation in one word: Sucks!
Flippa’s Advanced Valuation
In the Advanced Valuation you must fill a form to send unique visits number, monthly revenue and an email which the data will be sent. Once you hit the submit button you will get the valuation results by email.
The results data looks much better than the what I’ve got from doing a Basic Valuation, however it still inaccurate. I mean, the number of unique visitors and monthly revenue is not quite enough to give a fair valuation of a website, it’s too low than it should be.
But, anyways… I am sure that Flippa’s team made that tool with their marketplace in mind, and to mostly help their members, or to attract new members to the marketplace. So, I hope the valuation will not have a bad affect on the marketplace or website prices.
Flippa’s Valuation Tool FAQ
From the blog post where Flippa introduced the valuation tool:
How Accurate is the Valuation Tool?
We’ve been running this website valuation tool across Flippa sales in the background over the last 6 months or so. We’re seeing an accuracy of almost 90%.
Why does the valuation tool return a range rather than a number?
The tool will always return a valuation range. This is because there tends to be a significant amount of variability in both websites and the transaction values they sell for. The size of the range tends to reflect this.
What does Flippa Rank mean?
We’re toying with the idea of a Flippa Rank (not at all related to PageRank) so as to provide a relative measure between website valuations. It runs between 1 and 10 with 1 being the lowest value and 10 being the highest.
Sample Site Valuation Result
How come I will sell a business site that has an average of $30,000 / yearly income for ($27,250–$43,200) ? This doesn’t make any business sense!
Note: I am not selling my site or anything from that, this is only to give you an example.
Other website valuation tools
Here is a few other website valuation tools that sucks, but well.. You may want to take a look at it:
Share your thoughts about website valuation
I’ve seen a lot of valuation tools, most of these tools have one thing in common, which is inaccurate valuation. Plus, most of these tools overestimate the value of websites.
So, I credit Flippa’s valuation tool for NOT overestimating website values, and also trying to provide a price range, however I hope they can put more development into the beta tool and make it worthy and considered as a trusted source of information.
Try Flippa’s Website Valuation first, then let me know…
What other matrices should be added to the algorithm?
Is there any accurate website valuation tools on the planet?