Posted on July 20th, 2010Although there are different ways to assess the value of your website, this doesn’t include time and money spent for creation. Unfortunately those are difficult to incorporate into each website assessment. When choosing to retail the site, sellers price it higher than assessed. On the other hand buyers want to purchase the site at less than its worth.
Buyers vs. Sellers
Finding a common price of a website is becoming an issue with both buyers and sellers. This is due to the lack of a standardized process that prices a specific domain. To rationalize this procedure, domain name valuation has become more popular on the internet. This market is growing by leaps and bounds each day.
Facts about Appraisal
A thoroughly reviewed appraisal helps the owner realize the actual worth of their website. The process is based on speculation and factors relative to the appraiser. Generally the categories for valuation include brand recognition, marketability, traffic statistics, domain name value, business segment and site extensions. The process focuses on specific selling positions that the domain name carries.
Other important characteristics include a domain name that’s easy to remember by the users and one that’s short and easy to spell. Since the whole domain is evaluated, the core characteristics are spotlighted with the ultimate object being value assessment.
Those that are in the market to buy or sell a domain name should request an appraisal from a professional. Although appraisal sites are available, they differ greatly so it’s complicated to verify which is correct. The whole process is speculative so even using professionals for appraisal could result in slightly different prices.
Website vs. Domain name
Since domain names and websites are appraised separately, it’s difficult to verify whether the actual website content or domain name is driving the traffic. This makes the appraisal market extremely hazy and speculative with the overall price being relative to the appraisers collaborative decision.
Regardless, having the site and domain appraised is an effective idea for both buying and selling. This will at least result in a starting point for negotiations. The seller should factor in amount of time spent on the site as well as the amount of money already put in. The buyer should focus on the credibility of the site and the estimated amount of money generated by the website.
Buying and selling a website can be an arduous task. You never really know if you’re selling the site for too little. On the other hand, the buyer never knows if they purchased the package for too much with little return on investment.