Do you know the value of your web site? You should. You might be a millionaire or a billionaire and nor even realize it. The following are the formulas to calculate the value of you web site as Facebook and LinkedIn do.
The formula is actually pretty easy. It is a multiplication of three factors:
Web Site Value ($) = V x M x F
V = Monthly Unique Visitors, which is not the same as number of visits. If your are using Google Analytics you can easely find this number for you web site.
M = Average Minutes spent in each visit. It is also found in Google Analytics.
F = This is the factor used for Wall Street Analyst to appraise the value of the web site.
Now, we know the theory, lets apply this to formula to LinkedIn, with a current value of 6.5 Billion dollars in the stock market, According to comScore, 92 million unique visitors hit LinkedIn’s site world-wide in October and spent an average of 15 minutes on the site. We do the math and we get a LinkedIn Factor of 4.7101449.
$6,500,000.00 = 92,000,000 x 15 x 4.7101449
Now, let’s do the same for Facebook, valuated as the Wall Street Journal states in 100 Billion dollars. Facebook had 790 million unique visitors who spent more than six hours on the social network. The Facebook valuation factor is 0.35161744.
$100,000,000,000.00 = 790,000,000 x 360 x 0.35161744
Those are big numbers. Now let’s try it in one of our web sites with only 10,000 monthly unique visits and a average visit time of 5 minutes.
LinkedIn Formula = V x M x 4.7101449 = 20,000.00 x 7 x 4.7101449 = $659,542.00
Facebook Formula = V x M x 0.35161744 =20,000.00 x 7 x 0.35161744 = $49,226.00
If I use the LinkedIn formula to sell my web site, I will get more than a half million dollars, instead using Facebook formula the value will be only 50K.
Really? How about adding other web sit s I own and I am would be a millionaire.
You might want to do this calculations for your web site. We created a gadget that you can add to your web site to calculate these formulas for you web site.
The links of the gadget is:
If you have a WordPress web site you can also add this gadget. See: http://www.optimumclick.com/how-to-add-a-google-gadget-to-a-widget-in-wordpress/