Hundreds of bloggers and developers are doing just that every day on the Flippa marketplace. There is no shortage of WordPress-based websites that are on sale in this leading marketplace, highlighting yet another option of how you can make money with your WordPress skills.
Valuing your website is one of the most problematic tasks.
Most website valuations end up taking on one or more of the following approaches:
- Income Approach: a valuation based on the site’s expected revenue after taking into account items such as risk. If you hear people talking about CAPMs, IRRs, NPVs, WACCs, NCFs, GAAPs, or Monte Carlo simulations, chances are they’re using an income approach for valuation.
- Asset Approach: sums the value of the assets – such as held inventory for an ecommerce site – to define value of the whole. Will more often end up at less than fair market value given the interconnectedness of assets for a given website.
- Market Approach: this uses the transaction values of similar sites that have sold to provide an indication of the site’s value. Anyone saying “sites are generally worth X times monthly revenue” is effectively using this approach.
The Market Approach tends to be the most popular tool for websites. The trouble is that it has traditionally been difficult to get sufficient data about actual similar website transactions for this work effectively.
So Flippa has just introduced a valuation tool, which although not always accurate, can help you understand a bit better how much your website is likely to be worth.
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