How to Calculate Your Website’s Worth

How to Calculate Your Website’s Worth

We all know how important it is to have a website of your own when you are into an online business. If you would like to maintain your own website or if you are selling them to earn some money, it is definitely important for you to know what is the true value of your websites. How do you do this? With the help of a website value calculator you will now have the ability to know your site’s worth.

This may be something new to you because most of us aren’t aware that such service is available online. However, if you would like to know how this works then you may continue reading this article to gain more information about the website value and its worth.

Now, let’s say that you have a website which has optimized content but you haven’t been using it that much. You would like to know what would be the estimated website value you can offer for this type of website. But first you should know what factors will determine the value of your websites.

To be more specific, the value of a website would depend on its online entity rather than the monetary value of the company which actually runs it. One of the main factors to consider a website’s worth is how much income can it produce in a certain time frame. So, if one has to evaluate on your websites worth this is one of the assets that you should consider as an online entity.

To determine this you will then be needing a website value calculator. This type of service allows you to get access to a geographic data based on rankings, popularity, backlinks and other sources which can calculate your site’s estimate valuation.

Most of this web value sites can be accessed by the public and you will be able to find several credible sites available online to provide you the website value data that you need. To get access to the right web value calculators, you need to understand and do a little homework on how these calculations may help you in selling your site. It is important that you read the FAQ’s to know more about how your website’s worth is being calculated.

If not you are missing out on a very important website metric. VPV, or Value per Visitor, is one of the most important metrics to know about an existing site. It helps us to set budgets and manage ad spends to ensure maximum return on investment.

Calculating VPV is fairly simple. First, look at your monthly website statistics and find your total number of unique visitors for the month. Then take the net profit that was generated from your website for that month and divide it by the total number of unique visitors. For example, if you had 2,000 unique visitors and you made a net profit of $10,000, then your VPV is $5.00.
With an accurate value per visitor we can now begin to setup realistic ad campaigns. If you were trying to maintain a 200% ROI, then with the previous example we know that we do not want to spend more than $2.50 per visitor to our website. However, this does not mean that we should limit our Cost Per Click (CPC) to $2.50, only that we want to keep our AVERAGE CPC below $2.50. Since some keywords will be more competitive than others, we will need to bid more on those, while others will have little competition and can be bid on for pennies. In the end, it is the AVGCPC that we are concerned with.

Unless you are doing an extensive targeted marketing campaign on your website traffic will not be instantly available to you. It will take time to build quality traffic. Once you have built up some traffic it is time to analyze this traffic to see where it’s coming from and how well it’s converting. Too many people focus on getting more traffic to their website but if it’s not converting then more traffic will only lead to more unconverted traffic.

This is where Google Analytics comes in. Within the analytics system you can setup goal conversions to see how many people are making purchases on your website and from this you can calculate visitor value. You can calculate how much each visitor is worth to your website. In simply terms lets say you get 100 visitors and one person makes a purchase of £100 from your website with information you can tell that every visitor to your website is worth £1 to your business. This information can be invaluable especially if you are using AdWords to drive traffic to your website.

One of the other things you can track is where people are leaving your website. This can give you information on how relevant your content is on your website and what pages need improving. A tip here is to setup goal conversions at every stage of your order process as sites often suffers from high cart abandonment. With this information in hand you can see where people are abandoning their cart. You can then test different versions of your order process and track the results.

If you don’t know what’s not working on your website then it’s very difficult to fix it. This is why Google Analytics is your websites friend and with this system being totally free you really have no excuse to not use it. There are of course other systems that offer similar systems some you will have to pay for and some that are free, however in my option there is no other system that has the professionalism that Google Analytics offers.

As you can see, Value per Visitor plays a crucial role in assisting with your internet marketing initiatives. If you are not currently keeping track of your VPV, then I suggest you start now. Begin by ensuring that you have website statistics enabled. This could be through your webhost or preferably, through Google Analytics, a powerful and free service offered by Google. Next up, you need to start tracking your sales and gross profits from your website. If your site is an e-store and sales products online, this is very simple. But if you sale goods offline or your provide services it can become tricky to know which sales came from where. We recommend you setup a separate phone number to use exclusive on your website. RingCentral or other call management software can be used to achieve this and it is fairly cheap, around $25-$30 a month. The new number will ring through to your main line, but you can track all calls online to that number. All you need to do is write down the caller’s name and phone number, something you probably already do, and compare the phone numbers of sales to those in your calling software.