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Jeff's handy guide to appraising your own site

Thread title: Jeff's handy guide to appraising your own site
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08-14-2006, 06:48 PM
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Jeff Andersen is offline Jeff Andersen
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  Old  Jeff's handy guide to appraising your own site

Jeff Andersen's easy guide to appraising your own site

Step 1)
Assess your personal hourly wage, something that you see reasonable for your time. Try not to undercut yourself even if you're younger, your time is still valuable. More information on hourly rates can be found here.

Step 2)
Calculate how many hours were put into whatever you did on the project, everything and anything from planning to designing, to coding or just overview while others created it for you. For future websites it's best to keep a strict record of your time as to reach an appropriate conclusion when appraising.

Step 3)
Create a list of all overhead costs such as having a design made, having a script made, domain cost, fonts, hosting fees paid. This is anything and everything you might have had to spend money on to finish the website.
(Example purposes: 1 design $100, 1 page coded $50, 1 font $30 is $180)

Step 4)
Take your hourly wage and times it by your hours, simply enough to calculate your total wages for the time spent on the project. (Example purposes: 8 hours, and $35/hour is $280).

Step 5)
Now total your overhead costs and add this to your hourly wage creating an initial appraisal for your time and money put into the project. However you're not done yet. (Example purposes: $280 + $180 = $460)

Step 6)
Assess the success of the site (aka revenue and members), if there is any as well as traffic. This is coming into play to set the profit margin. Generally for revenue it is good to set a 8-10 month buffer onto the site's worth, this is to cover the monthly revenue you will be losing by getting rid of the website. ($30 revenue per month, * 9 months = $270) However, be careful here if it's not fully developed you may want to charge more based on potential earnings, but try not to guestimate over the top on this part as if you come to an unrealistic conclusion on potential it will hurt your sale of the website.

Step 7)
Now you're ready to total everything up, generally you should be happy with this figure but if you're not remember this is just judging on things that you really should take into account when selling the site, you can still raise or lower it to where you see fit. Add a further profit margin if you think that you'd like to get more out of what you put in. (Example purposes: site appraised at $1190)

Step 8)
There you go, now you can sit back and marvel at what you've appraised and get to work on advertising the sale of your site and hopefully find a new buyer.

I've said this a few times in many different ways, please remember do not follow this as an exact guideline for deciding what your site is worth, generally if you feel it is worth more than you've appraised it then obviously you'll need to raise the price to be satisfied with the work you've put in and the compensation you get out of it.

I just hope this helped out a few people decide on what their site is worth and what they should be factoring in to all sales of websites no matter what stature.

Regards,

08-14-2006, 08:18 PM
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JamesH is offline JamesH
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Its about time you put your article here. As i've always said, excellent article!

08-15-2006, 08:11 AM
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Julian is offline Julian
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Good article Jeff, thanks!

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