Monday, October 5, 2009

Valuation of Web traffic

Website Valuation: Valuation of Web Traffic -

Websites are the Online Properties. And just like the Real Estates of the offline world, they have a value. Owning a Website is just like owning a Real Estate or any other Asset such as Stocks, Bonds, Gold or Mutual Funds. Means as long as you hold it, you will be profited by a steady Passive Income (Just Like Rental Income) and when you sell it, you will make a Huge Capital Gain Profit.

But the main problem is – The Valuation of the web site. The main thing behind valuating any Web property is the – Web traffic. The more the web traffic the website will have, the more the Revenue and thus more will be its valuation.

So the Valuation of the web traffic is very much important before buying and selling websites. Websites and Blogs are the online real estate. And they are the Intellectual Properties in their purest form. The Domain Name of the website has also its own value.

Now, just think about Google. We have to pay 10 cent per unique visitor to Google via AdWords if we want to buy a web traffic from Google Right? Now, suppose one website is receiving 500 unique visitors a day, than it means that it has a natural web traffic of $50 per day, $ 1500 per month and $ 18,000 a year.

And that’s why that website has some natural value inside it. Because once you acquire that website, you don’t need to spend $ 18000 a year to bring that traffic from Google. So rather than starting out of Scratch, if you acquire the site having 500 Unique visitors daily in your desired Niche, than it means that, you have saved US $ 18,000 per year…!!!!

This is the value of the web traffic. Any website having a natural traffic (Direct or Search Engine) will have some value. It may be few hundred bugs or it may be worth of Millions. But It will have Value.

So Before buying and selling a website, the valuation of the web traffic is MUST. You should also consider the future growth potential of the website. If you know how to and what to sell in your desired Niche and you get already established website having 500 Unique Visitors daily, than Believe me… You can make fortune out of that web site.

Thus, Please analyze the web traffic stats before buying and selling a website. This is very important…!!!

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