The starting point for most website valuations is a multiple of current revenue, generally set based on recent transactions of similar properties (aka. comps). The most common way to value a website is to price it as a multiple of monthly recent earnings. Most blogs would be priced at 30 – 40 times monthly advertising earnings, unless there are other issues present. But how do you value a website with no revenue?
It’s been about 4 years since we last wrote about website valuations, continuing the work of a project we started 8 years ago. One of our readers recently commented that valuations have risen. He’s absolutely correct – and here’s why….
The Market for Websites – 2019 vs. 2012
Digital investing has come a long way as an asset class over the past decade. When I first started looking at this business, it was effectively an “operators only” market, especially for small websites. You had to be close to the asset.