Here is a reckoner to tell you what is my website worth!

Many, many people undervalue their website. Very many complain about it, and complain about their visitor numbers.

Many don’t even know their visitor numbers, or track what they sell or lead generate from their website.  Yet when they ask themselves what is my website worth, they usually reflect on what it cost.  This is a mistake.

In the next 5 to 10 years, you will find websites in Australia trading hands for big money.  Some do you already say, and I agree, but small and medium business and even large business, when they come to sell their concerns and move on, retire or whatever, grossly undervalue their website or don’t value it at all.  It’s seen as just a part of the business.

So, what is my website worth?  Lets look at an example and we will base in on many factual sites by lets leave it anonymous.

Anonymous inc sell home removals.  They move you and your possessions from State to State.   They have managed to build up their websites (they have more than the one which is their brand name) and they generate 1,000 visits per month.   Out of all of these visits they convert visitors to quotes on their website at 20% which is a good rate and they have spent good money and time getting to this level.

Also, they convert 1 phone call quote from the site in ratio to each completed quote form on the site, so in effect, each 10 visitors to the site result in 4 quotes.  Internally, they complete 1 job from each 4 quotes, so their close rate is 25% and their average removal is $3000.

When they work out what is my website worth, they turn to google adwords and it shows them their average paid visitor is $10 per click.

Simply, their website generates $10,000 worth of traffic a month.  It generates $300,000 worth of work a month.  At the very least they can argue that the site is valued at $120,000 per annum on a simple traffic calculation of what is my website worth.  They would then calculate a simple multiple for this asset for a sale.

Many would argue that the sites would plug into an existing business and would generate $300,000 worth of work a month, thus valuing it at far far more, perhaps $30,000 a month or $360,000 a year if based on a 10% profit margin say.

Do yourself a favour, ask yourself what is my website worth.  Then, spend some time and money getting it ready to be your most valuable business asset, and when you come to sell your business, you will be glad you did, because you will have the statistics and won’t in your right mind, just give it away with the business.

Mark Tull

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