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How to Calculate Value of Website

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Like any physical asset, a website is also an fixed asset because it is just like shop for generating the income for you. The purpose of making website may be different but if you start your work on it, it becomes valuable in the market. You can calculate  value of your website for showing your financial position, for selling it at
good rate or any other purpose. Both e-commerce and content based websites can be sold at good rate in online market, if you know its correct value. So today, learn its steps :

1st Step : If you do not Know the Technical Points Behind this

If you do not know the technical points very deeply, then best is to use online tools which will be helpful to you to calculate your website's value. Just write website calculator and you will find many free tools. All these tools will see your Alexa rank, total page-views in day and total hits. More your site gets the page-views, its value will be more. Ok

2nd Step : Analyze Yourself 

You are the owner of your website. You know, your website better. You can tell its value on the basis of its current revenue. For example, you gain Rs. 4 from bank if you deposit Rs. 100 for one year in the bank. It means if you are earning Rs. 4 from anything, it means its minimum value is Rs. 100. Like this, if your advertising income or online sale income through your website  is Rs. 4,00,000, then your website's value will be

4,00,000 X 100/4 = Rs. 100,00,000 or Rs. 1 Crore. You can also go more deeply by studying the trend of income of your website. If its flow is upward, then you can demand more money for your website.

3rd Step : Page Value (New Way)

After seven years, google analytics is coming back by showing page value. It will be good tool of calculating the value of your website.

As per google analytics blog :

Here’s the exact formula of how Page Value is calculated:
Page Value = (Transaction Revenue + Total Goal Value) / Unique Pageviews for the page
Page Value can also be calculated for a group of pages, like a directory. In that case the definition changes slightly.
Page Value = (Transaction Revenue + Total Goal Value) / Total unique Pageviews for the group of pages
Remember, a unique pageview is just a count of visits that include the page. If a page is viewed five times in a single visit, Google Analytics will count five pageviews but one unique pageview.
If you will total your all pages value, it will give you good idea how much pages are valuable. One this basis, you can calculate the exact value of your website.


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Accounting Education: How to Calculate Value of Website
How to Calculate Value of Website
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Accounting Education
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