Free Blog Valuation Tool – How To Price Your Blogging Business
Once your blog starts bringing in revenue and it starts making profit, it becomes a business. And once you have a business that works, you can sell it – and build another one, and another one.
It’s the journey of every entrepreneur out there that hones a skill he or she is able to then replicate. And building blogs is definitely a unique skill!
But how do you know what price tag to attach to your blog once you’re ready to sell it to make sure you’re actually making a profit off the transaction?
And how do you put a price on months and months of work that went into creating, building and growing your website in the first place?
Keep on reading to find out my top tips for how to valuate your blogging business.
This is a sponsored post written in collaboration with Flippa.
Why You Should Valuate Your Website
The primary reason why you would want to know what your website is worth is because you are planning to sell your blog for profit.
Therefore, having a correct estimate of your listing cost will help you accept buying offers that are fair, and have a strong ground for renegotiating.
Valuing your blog can also help you determine if you should sell now, or wait and grow the blog a little more, in order to make more profit off the sale.
And in the event that you are not interested in selling your blog at all, it could still be a helpful metric to help you understand how you are doing and how to grow your business in the future.
How To Valuate Your Blog With Flippa
Use their free valuation tool
One of the easiest ways to get a correct estimate of what your blog is worth is to use Flippa’s free online valuation tool.
Flippa is an internationally renowned marketplace for online real estate, and it lists everything from blogs, websites, online businesses, social media accounts, and more!
To get a totally free valuation, simply visit this link, and answer the questions that you will be asked in the chatbox. It’s a super easy process that only takes 30 seconds to 60 seconds.
Here’s the kind of information that you will need to provide in order to get a price estimate on what your blog is worth:
- Your blog’s URL
- Your revenue for the last 12 months
- Your blogging related expenses for the last 12 months
- Blog traffic (in particular unique users from the last month)
- Your niche, type of content, and the main way you market and generate income
These are all key statistics used to determine the worth of your blog in the eyes of potential buyers and in the market. And you can communicate these easily using the valuation chat.
All your answers are then used to generate an almost immediate valuation range. So it’s important that you are both honest and as accurate as possible with the answers.
But Flippa uses their own sources to verify your blog’s worth and traffic. And their initial valuation can be further negotiated or changed based on what you will include with your blog when you sell it.
They even create a quick listing for you that can help you get set up in minutes if you decide to sell it or start the process in order to see inquiries.
And you can use the blog valuation tool as many times as you need, for as many different blogs that you have.
Use a formula to estimate your blog’s worth
An alternative to that would be to try to estimate the worth of your blog by yourself. It’s not an easy feat, but it can be done.
Generally speaking, the retail market of your blog will take into consideration how much your blog is currently making.
Both the revenue and profit are used to calculate the worth of your blog.
Based on what Flippa’s valuation was for the numbers I put in when I was testing their tool, I determined that they use a formula is:
Average monthly revenue x 12 x multiply factor from 2 to 4
Here’s the catch. My multiply factor was set at 2.8 for the test numbers I inserted and they were based primarily on my profit margins.
In other words, you can estimate your blog’s worth higher if you keep a larger chunk of the profit, but if you have more expenses to run the blog, that could lower the asking price.
So, for example, if your blog is making $2,000 in revenue per month, but only $500 of that is profit, your blog would be worth around $48,000 (or less). But if $1,500 of that was profit, you could charge up to $70,000.
These are all of course estimates that don’t take into account other factors that would normally sway the final listing price.
Such factors can be:
- The age and quality of your domain
- Your niche and the demand for blogs like yours
- The quality and quantity of your content
- Backlinks, domain authority, traffic
- Any add ons that you would sell with the blog – such as social media channels, digital products, media assets such as an email list.
As I mentioned, Flippa’s valuation tool looks into some of these external factors for you – and provides this insight for free.
Because this formula barely scratches the surface.
Final thoughts: how do you know what your website is worth?
If you’re genuinely looking to estimate the value and worth of your blogging business, the easiest and quickest way to do that is use a blog valuation tool. This way, you eliminate any guesswork and you’re able to go straight to the source.
And who better to determine the price of your online real estate than a marketplace where similar blogs and businesses are listed and sold every single day?
In the process, if you pay attention, you can also learn about what makes a blog worth more. That way you can get accurate targets for what to work on if you want to increase your blog’s value or build a new blog from scratch that you can sell in a couple of months and turn in a profit.
Additionally, you can compare your blog with existing or already sold listings and determine a fair asking price based on assets you will include or overall profit and traffic.
But don’t be afraid to ask for what you are worth if you are bringing more to the table.
Let me know in the comments section – have you ever considered selling your blog? And what would you price it at?