When we originally launched WebsiteBroker.com back in late 1997 the Internet was a different place. It was before the now infamous dot com crash. No one had even heard about blogs back then. Google was not even on the radar. Even back then, the valuation and price tags of websites with very little revenue or even prospects for revenue was astronomical. Eventually these high valuations were part of the reason that led to the crash.
As the commercial Internet evolved and matured things eventually turned around and valuations started being based on more concrete metrics and revenue started playing a bigger role in the actual calculations.
I started writing an article about web site valuation in 1998-99 and listed several factors used in the valuation of web sites. I never got around to finishing that articles as other web related projects took more of my attention. I plan to revisit the article and add more updated information based on what we’ve learned in the last 10 years of running this site. I would also love to get some feedback from our users as to elements that need to be considered when valuing a website.
I also plan on posting any news , tips, information relating to buying, selling and valuing websites, including any information about sales of different websites. I would love to hear about any sale you might know about.
