How to value sites?

[ramchip]

I have asked this question before although I know there is no 100% correct answer. When looking at sites to buy I do think most of the time that sites are over priced so perhaps my way of thinking in not correct.

So lets say the following site exists.

Site Name: www.i_made_this_site_name_up.com

Daily Uniques: 100

Source of traffic: 80% USA 20% Europe

Site Age: 16 months

Monthly Income: Average $1000 per month (CPAs)

Costs Per Month: Average $125

Using the above data could you value the site? If you needed more data what data would you need?

What value would you put on the site?

[Holis]

Referrers, Keyword rankings, existing affiliate accounts or not

Value is lowered due to 80% usa traffic (at least right now)

I would also look at Page rank and outgoing links

[PFO]

You would definitely look at the keyword rankings and traffic from search engines. This would help you see how the searches will result in real money conversions.

Let say certain keywords on page 2 of google is bringing in most of the traffic and converting well. By investing in some more SEO, you might be able to reach the first page on google a see your conversions increase.

Definelty look for potential in the sites before buying. Is it in the right niche? Will you need do do some redesigning? What are the other competitors? How much more work and costs will need to invested to reach future goals.

Based on the current revenue and the above info you can better value the site for yourself. Some people might value it more becuase they have a better idea on how to increase the conversions fast and cheap.

[bg]

The CTR for the past year to gambling banners and other ads on their site will tell you everything about the traffic. If you are talking low volume traffic then you just need the source of the traffic. I always try to get a test when buying advertising space. If a guy is huge, it is a can't lose situation for me. It will expose what someone really has to offer REAL FAST.


BG

[ramchip]

OK some good comments there guys. So using my mock example at the top of this thread what value would you put on the site and why?

[PPP]

You really can't do it in the abstract. For example is 100% of the traffic from Adwords? Is 97% from one search term? Is 90% from 1000 search terms with now accounting for more than 1%? Is it getting traffic despite being idiotically structured? Is it getting traffic because it is terrifically structured and performing at it peak?

There are so many variables

[ramchip]

I really do want to see how experienced members of this forum do value sites so that I can understand the process they go through. I'm not selling any of my sites but would those with experience value one of my sites please if I supply all the figures you need?