If you ever considered owning a piece of the ultimate real estate (internet), then this article is for you!

Whether you want a website for fun (e.g. hobby) or to making a living, there are a few basic factors to consider before jumping in. If you decide to buy a website, then consider looking at various online auctions (i.e. Flippa). The process works like eBay and the auctions are for intangible property (e.g. domain and website content).

In order to properly value a website, make sure to perform some basic research and consider the following questions:

Does the domain name contain keyword phrases of the niche topic which gears toward the website? For example, if you have a tattoos website, then does the domain contain the word tattoos or related keyword phrases (e.g. tattoo ideas, designs, images, pictures)? This will add more value to the domain, but good unique content carries more weight.

What type of domain is it? For example, does the domain extension have.com,.net, or.org, etc.? This is not really important, but.com is preferred.

What’s the age of domain/website? The more value is placed on established domains and websites.

How uniqueness is the content and has it been copied from another source? Often times, the contents are replicated and modified to look unique.

How easily can the website be replicated? Once you buy it, can someone easily steal the code and contents?

How many quality back links (sites linking to the site)? Are those links paid or organic? Back links represent votes to your site.

What is the page rank according to Google? This represents the trustworthiness and authoritativeness of the site and is related to the quality back links.

What are the keywords that generate traffic and how are those keywords ranked in various search engines? Ideally, you want a diversification of traffic source from various keywords.

What are the traffic sources to site? Is it from search engines or referral sites? Again, diversification is the key.

Is the niche of the website seasonal? Looking at a years’ worth of data for the niche market will usually determine if certain times of the year generate more traffic.

How competitive is the niche? Areas such as health related products are highly competitive and thus require more promotional effort to get noticed.

What are the monthly profit amounts and sources? Some of the popular revenue sources include pay-per-click (PPC), fixed revenue ads, or commission based.

Lastly, how much is the monthly maintenance cost and the required effort (hours and skills)? For example, does the site require a dedicated server which can cost hundreds of dollars per month? Ask about special software licenses and technical skills. You may need to hire a programmer to maintain it, so there is additional cost to think about.

The final value of a website can vary depending on the above factors. Typically if the site is established for 1 year or more and generating consistent revenue from month to month, you can expect to pay about 15 times the monthly profit to get an estimate of websites’ worth. Half of the challenge is to find timely information and there are great tools on the internet that can assist you in making the right decision.

Website buying experience: BuyingWebSites Blog

FREE tattoo ideas and tattoo designs: Tattoos Designs

Regards Always

Mark McCulloch

http://www.OneMillionIncome.com – mark@markmcculloch.com

Internet Marketer and Entrepreneur, Committed to creating success

(UK) 07875 647 867 (Call Me Anytime), Skype – mark.mcculloch1

If you enjoyed this post, make sure you subscribe to my RSS feed!
Share

Tagged with: • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Filed under: Home Based Business • Internet Marketing • Online Business

Like this post? Subscribe to my RSS feed and get loads more!