So, you’ve spent the money on getting your website up and running, you’ve got the eye-catching web layout and an innovative online business but, do you know how much your site is really worth?

After all the time and money you’ve fed into your business venture, is it now living up to its potential and you are thinking about selling? Or perhaps it is taking too much of your time and you need to focus your energy elsewhere. In these cases, you are going to want to know ‘how much is my website worth?’

Our website valuation tool will give you a better grip on where you sit in the online business market, and how to make the most of your website’s earning potential.

How Does the Website Valuation Tool Work?

You’re probably wondering how the value calculator will work for different types of businesses and what it is exactly that makes your business valuable. Its web economics, and we are here to make sense of it for you.

We use your 12-month net profit average and multiply it by a multiple to produce a website valuation. The multiple ranges from 20-50x the net profit.

The multiple is affected by your net profit average and how long your business has been around for. The higher the net profit, the higher the multiple. The longer the history of your business, the more attractive it looks to potential buyers. A steady profit level over time will earn you a higher multiple which will inevitably lead to a higher website valuation.

There are many factors that affect the multiple in this equation. If you’re looking at preparing your online business for sale then this is where to focus. By optimizing the factors below you can ensure your business is ready for a significant increase in multiple and valuation price.

How to Grow Your Website Value

Minimize Your Weak Areas

As an example, instead of having just one supplier for a product, make sure to have a backup in case the supplier becomes unavailable or increases their price and puts your business in jeopardy.

Increase Your Website Traffic

This will increase your revenue, net profit and your multiple!

Use Email Subscribers

When used correctly, email subscribers are a valuable asset to your business and many buyers see great value in this!

Social Media Promotion

An effective driving force of traffic and sales to increase your multiple.

Offer More Products

This will generate more sales and make your business more attractive if you’re looking to sell.

Minimize The Hours Required

Reduce the amount of time spent on your website every week to make your business more attractive to potential buyers.

What Type of Online Business Do You Have?

This website value calculator tool can be used to evaluate the value of various types of online businesses, some examples of which we have highlighted below.

Fulfillment By Amazon (FBA)

Your website makes use of Amazon’s broad network of fulfillment centers that store your products until they’re sold. Not only do they provide a warehouse of sorts, but they also take care of the packaging, shipment, delivery and customer service for you.

You’re paying to store your products with them and for each product sent out so you have more time on your hands to focus on growing your business.

Google Adsense

You run paid adverts with Google Adsense to make the most out of your website traffic every month. You’re involved in the choosing and placement of the ads so you can ensure the most relevant and high paying ads get preference.

DropShipping

Dropshipping websites are involved in the retail of products or services but essentially do not stock or own the products themselves. The item is sold on your website, purchased from a third party and delivered directly to the customer by your website’s delivery service.

E-commerce

“E-commerce” is a blanket term referring to any online business involved in transactions with consumers. Think retail, wholesale, dropshipping, crowdfunding, subscription, physical products, digital products or services.

Amazon Associates

Your website makes use of the Amazon Associates program and earns revenue when people click on a link that leads them to Amazon.com resulting in a purchase. It’s as simple as creating the link, and earning the referral fee when a product is bought.

Affiliate

Your website drives customers to a retailer. As an affiliate marketer, you are essentially driving sales to a retailer however, you’re compensated not only when a sale is made but also potentially when a visitor is redirected to the retailer’s website.

Monthly Recurring/Subscription

Your website earns revenue primarily from subscriptions. Customers pay a fee to use the services of your website either by subscribing to a long-term contract or by paying a monthly recurring fee.

Service (Productized or Other)

You make money by selling a service online. Whether you do so as a virtual assistant or are directly involved in the service, you’re essentially selling your time and promising a particular result instead of a tangible product.

Lead Generation

If you’ve got a lead generation site then you’ve caught on to the long-term benefit of gaining prospective customers with a particular interest in your website. Capturing personal information about a potential customer allows you to nurture that customer to the point where they buy your product(s) or sell it on to other businesses interested in the leads.

SaaS

SaaS stands for “Software-as-a-Service”. It is, simply put, a website that earns an income based on the monthly subscriptions its customers buy in order to use the application it hosts on the cloud.

Businesses needing to use the application can log into their account on your SaaS website and gain access to the application.

Info Product

Your website is a business of providing info products to an information-hungry customer base. Either in the form of a lengthy, informative PDF or a detailed recorded webinar, the info product earns you money every time it is purchased from your website.

Application

Applications (or apps) on smartphones, tablets and ‘wearables’ earn money in many ways. They can either be downloaded for a fee or offer a free download with in-app purchases or in-app ads. Apps have huge money-making potential and can generate revenue for years after they are developed.