How to Estimate The Value of Your Blog (Website Valuation)

You've invested a lot of energy into making your blog a hotspot for websurfers and a nice source of passive income for yourself. Your blog is a business, and like any business, you can flip it for a profit. But before you offer your blog to buyers, you need an estimate of how much your blog is worth.

There exist many models for website valuation, but the most important variables are always net income, traffic, and content. If you need a good estimate of your blog's value, follow the steps below.

Difficulty: Moderately Easy

Instructions

1. Determine the net income from the past 12 months. This is the total revenue from ads, affiliate commissions, paid posts, and other sales minus money you spend on maintaining the blog. These costs could be hosting fees, advertising campaigns, or freelancers who write your web content. Call the net income N.
   
   You should consider the income of the past 12 months to account for seasonal fluctuations in spending habits.

2. Next, determine the number of unique page views you received for each of the past 6 months, find the average, and then multiply by 12. If your blog traffic has been increasing steadily, then the most recent 6 months will give you a better idea of current traffic patterns. Call this number V.

3. Appraise the value of your blog's content. This is the value of your articles, posts, images, videos, and any thing you sell from your blog (such as consulting services, programs, or content). Call this number C.

4. Use the formula N + (0.07)V + C to compute a rough estimate of your blog's value. For example, if your total income from the last 12 months was $4000, then N = 4000. If the number of unique visitors from the past 6 months were 10000, 8000, 11000, 9000, 10000, and 12000, then V = 120000. And if the value of your content is $1500, then C = 1500.
   
   Then, N + (0.07)V + C = 4000 + 8400 + 1500 = 13900. So your website is worth about $13900 for the next 12 months.

5. Keep in mind that this figure may be low if your website has been growing. For example, if you have seen a steady income growth from month to month, you may estimate the next 12 months to be higher than the previous 12 months.

6. If you own a particularly well-named domain, you can factor that into the value of your website as well. A short web address with a good key word and a .com ending is worth more than a long domain name with poor key words and a .net or .info ending.
   
   Ultimately, your website is worth whatever someone is will to pay, so make sure that you can convince a buyer of it's high value.