Tips For Buying A Website

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Revenue

When valuing a web site, revenue is king.

The standard method for valuing web sites is to take the monthly revenue and multiply it by another number to determine a fair value for the web site.

The number is called the multiplier. Sellers like multipliers of 36. Buyers like multipliers of 3. Most deals end up somewhere between those two extremes.

Tip: Be sure to look at revenue numbers over a year's time. Some sellers will have one good month or one good quarter and try to overprice their web sites based upon that. Don't buy a store thinking that every month is December.

PageRank

A web site with a PR6 main page is worth more than a web site with a PR5 home page.

Tip: PageRank is easy to spoof by using a 301 Redirect, waiting for a Google PR update, taking down the 301 Redirect, and then selling the web site before the next Google PR update. Be sure to examine the backlinks to a web site to ensure that it deserves its PageRank.

Tip: Some sellers will sell PR0 domains and say "The site doesn't have PR yet." The truth is that these sites have often been banned by Google. You are better off to wait for the next Google PR update.

Tip: A seller may have a lot of their own links pointed to a domain, artificially inflating the PR. After the domain sale is completed, the seller will take down their links to the domain. Be sure to examine the backlinks to a web site to ensure that they are not all coming from the sellers other web sites.

These are some of the good tips for buying a website,  I agree with all of them.