Have you ever asked yourself, how much is my blog worth? A WordPress blog’s value can be roughly estimated using various domain appraisal services and website value calculators. Unfortunately, these blog value estimators merely consider your site’s domain name, visitor traffic, PageRank, and other exterior measurements. They can’t accurately measure how much your website is worth without knowing how much revenue and profit your site makes in a typical month. If you really want to get an accurate indication of just how much your blog is worth, you need to look at some raw website sales data. After all, the true value of something is ultimately dictated by what the market is willing to pay for it.
WordPress website value data collection
Recently we completed a search on Flippa, a popular marketplace for buying and selling websites, to collect real WordPress blog sales data. The search was confined to sites sold under the WordPress tag or those that were built on WordPress. Additionally, I only included sites that reported their revenue and profits and we excluded those that appeared to be falsified. That is, if the website’s profit wasn’t less than that of the generated revenue or the seller’s evidence for such earnings was questioned by many potential bidders, the site was excluded from the data set.
As you can see from the WP blog data below, we used Microsoft Excel to create the figures, calculate the r-squared values, and the linear regression equation (Y intercept set at zero). We understand that there are perhaps better statistical tests and software that can be used to do this but for our purposes this will suffice.
|Website value data derived from Flippa
From the data listed above we can clearly see that a website’s reported revenue and generated profits are the best indicator of its value compared to PageRank and the amount of visitor traffic it receives. We know this because the r-squared values were the greatest for those two parameters. Remember, an r-squared value of 1.0 indicates a perfect fit of the regression line to the data points. Thus, with r-squared values of 0.83 (final price vs. profits) and 0.80 (final price vs. revenue) we can feel assured that these are good indices for approximating a final selling price for your WordPress blog on Flippa.
Just for fun, I’ve included the calculations for the monthly earnings factor for each website sold based on their reported revenues (Price/Revenue) and profits (Price/Profit). At the top of the spreadsheet you’ll find the averages for all of the blogs included as well. These calculated averages give you an idea of what the sale price of a site is worth in reference to its monthly earnings. That is, how many months of revenue/profit the site is worth to the buyer. This provides some very useful information to the seller too because it lets them make a well informed decision as to whether or not to keep their website, and therefore the potential monthly income, or sell it for the number of months in website income the buyer’s price may be worth. In the data displayed above, the average monthly earnings factor for the reported revenue and profit for the included sites were 13.13 and 15.52, respectively. Thus, WordPress blog sellers are earning a little over an entire year’s earnings by selling their site. Of course this is just an average and the linear regression equation should probably be used instead. Regardless, between the linear regression equations constant and the referred averages you’re looking at earning about 10 to 16 months worth of profits if you choose sell your WP blog or WordPress based website on Flippa.
Obviously there are specific sites and domains that may be considered outliers of our data if they were to be included. For example, if you owned a single letter domain it would most likely sell at much higher amount than what might be predicted using our linear regression equation. This is because our basic statistical analysis doesn’t take this variable into consideration. The majority of the WordPress blogs included in our data set were associated with top level domains (TLDs) that possessed a somewhat normal amount of letters (>3).
How much is my blog worth?
If you’d like to use the data I collected to predict what your WordPress blog may be worth, simply plug your blog’s monthly revenue or profits into the linear regression equation. The value of X represents your WP blog’s monthly income (revenue or profits), depending on which equation you use, and Y is the predicted amount for the final winning bid price. Hence, if Y=9.9962X and your blog’s monthly profit is $100, then the estimated value of your WP site is $999.62. You could also use the linear regression equations for visitors and PageRank to predict your WordPress blog’s value but as the r-squared values indicate, they aren’t good indicators of an auction’s final bidding price on Flippa. However, I have included the average monthly earnings factors for revenue and profit so you can also use those to estimate what your blog is worth.
It’s a no-brainer that revenue and profits are the best price indicators for most website sales. However, without actually collecting the data, analyzing it, and then reporting it, this can not be verified for a specific website marketplace. Moreover, the data reported here gives us a clear indication of what the market is willing to pay for websites listed on Flippa and the most appropriate annual earnings factor that can be applied to obtain fact-based website valuations.If you liked this article, please take this time to share it with your Facebook friends using the Facebook button (see Facebook post button to the left) or retweet it using Twitter (see retweet button to the left). You may also want to follow us or subscribe to the site to stay up-to-date with this article. If you'd rather follow us from your Facebook account, join our Facebook fan page or subscribe to our NetworkedBlogs profile.
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