How to sell your website at a good price

I already showed how much you can earn on an average website or Youtube channel.

But if you want to sell your domain or channel, how much should you ask? What’s the fair price for a website? Well, here 3 main value calculations may apply. First one is cybersquatting. That means you got hold of a cool domain name, like the name of a brand that is still not present in your country. And then suddenly this brand starts expansion, and offers you some money for the domain. This price will be subject of negotiations, no rules exist here. Second option is when you offer some really great and unique service, and someone big wants to buy it out. For instance, when Facebook purchased Instagram, they paid an astonishing amount of money per registered user. Normally, users are purchased way cheaper. And the third way to calculate fair value of your channel or website applies when someone wants to purchase your business. This business of yours has some income flowing in, like from partner advertising or merchandise sales if it’s an online shop, whatever. You have to calculate that income minus all expenditures like domain name costs, hosting costs, courier services and other maintenance. Don’t forget the taxes. You get the pure income the site generates. Let’s say it’s 100 USD a month, as this is the minimum Google payout. That makes 1200 USD a year. Now we need some kind of risk-less rate. Normally, this is the coupon yield of 12 month US treasury bonds, or some kind of bank interest rate indicator like LIBOR. These are considered risk-less, as any investment at these rates is almost guaranteed to return. If USA stops paying out coupons on their debt, that means the country is bankrupt, which leads to default and all that kind of mess, so the business will be fucked up anyway. You may also take a bank deposit rates. Let’s say the banks offer 10 percent annual interest rate on the money. So that 1200 USD your site generates is 10 percent, or 1/10. So 100 percent will be 12000 USD. You have to deposit 12000 USD at 10 percent rate to get those 100 USD your site generates a month. That’s why it is safe to assume that this website is worth 12000 USD if you decide to sell it.

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