Setting the price for a web project is often the supreme discipline when it comes to selling your own company. After all, as a seller you want to receive a justified sum for your own project on the one hand and gather enough interested parties for a sale on the other. The problem here is often that the ideas of the seller and the prospect are often far apart. The fact that there is also no fixed method for determining the price of a web project in practice makes the situation even more difficult. In order to still close a deal and to come to some extent on the same denominator, the procedure for determining the sales price plays a crucial role.

We at Projektify in particular repeatedly receive inquiries in which sellers ask us for help in setting a price for a web project. It is precisely for this reason that we have carried out a study on this topic.

Tip: Our price calculator will help you when creating your web project. So you don’t have to understand these complex formulas as our system will calculate it for you automatically.

Note: If you have debts or goods then of course you have to deduct or add the value from the price.

Study to determine the price of a web project

In our study, we used the data from the sales on our platform, as well as an online survey. To do this, we carried out an evaluation of the last 203 web project sales and the results of the survey. The aim of the study was the formation of connections and multiples for the pricing of web projects. For our evaluation and the subsequent creation of a calculation basis, we therefore used the variables price, traffic and profit of the web project. This ultimately resulted in 3 different calculation options based on different initial situations:

  • Web project without profit, but with traffic
  • Web project with profit, but independent of traffic or
  • Profitable web project but dependent on traffic
  • Web project with no profit and no traffic

Case 1: Web project without profit but with traffic

Among the 203 web project sales evaluated, there were many cases in which there was no profit, but there was traffic. Contrary to the general assumption that only profit determines the selling price, traffic also plays a decisive role. Ultimately, this brings potential customers to the website and therefore serves as the foundation for future profits. Web projects without profit but with traffic therefore also offer a potential that should be exploited. The price for the traffic applies.

The following graphic shows the distribution, which shows how the sales price for web projects without profit but with traffic (per month) has been distributed in the case of already successful sales:

Price per visitor (in euros)

Our evaluation showed the following for the scatter:

  • Min: 0.1 euros per visitor
  • Max: 2.5 euros per visitor
  • Median: 1 euro per visitor

It therefore shows that most web projects that are not yet profitable use monthly traffic as a basis and charge between 0.10 and 2.50 euros per visitor. We recommend taking 1 euro per visitor. Therefore Projektify recommends using the following formula:

Traffic * 1 euro = price

Case 2: profitable web project

The typical case when selling web projects is of course selling web projects for a profit. We have categorized this type of web project in our evaluation according to two classes: independent and dependent on traffic.

Case 2.1: profitable web project regardless of traffic

In the case of a web project with a profit but without specifying traffic, multiples are used to determine a sales price.

With the multiple procedure, important key figures are set in relation to the company value. The advantage is that you get a quick estimate of a possible selling price. Basically, the multiplier method works in such a way that the company value of the web project is based on the market price of comparable companies (peer group). The peer groups represent different industries with their own multiples. You can get more information about the multiple procedure here .

The result of our evaluation of web projects with profit but without specifying traffic showed the following spread. In doing so, the relationship between the profit for one year and the sales price is determined.

Multiples per web project

preis-pro-besucher

Our evaluation showed the following for the scatter:

  • Min: 0.3 multiples per web project
  • Max: 4 multiples per web project
  • Median: 0.98 multiples per web project

It turns out that the profit of a year is often just under the selling price. Based on these results, Projektify recommends using the following formula:

0.98 * profit = price

Case 2.2 web project with profit depending on the traffic

With additional information on traffic, however, a web project can be evaluated even more precisely, because the potential can be calculated. This corresponds to the profit per visitor. Before calculating the multiple, the potential is calculated (profit per visitor). According to the spread, this should be as follows:

Profit per visitor

multiples-pro-webprojekt

Our evaluation showed the following for the scatter:

  • Min: 0.1 euros per visitor
  • Max: 2.4 euros per visitor
  • Median: 0.34 euros per visitor

This then results in the following calculation:

Profit / traffic = profit per visitor (GpB)

This corresponds to the profit per visitor (in short: GpB) and is based on the spread in the graphic above. Accordingly, the GpB shows the potential. This can of course increase or decrease the value. Because you can generate high profits, this serves as a sure indicator that the website is of high value. Because in real life, too, the pubs where the customers feel comfortable are usually well frequented.

To determine a basis for calculation, we examined the GpB of the web projects and were able to determine categories from this:

Multiple lucrative web projects (GpB is greater than or equal to 0.34)

Web projects with potential (GpB is below 0.34)

gewinn-pro-user

Now you take the GpB and calculate as follows:

  • GpB => 0.34: Profit * 1.4 = price
  • 0.25> GpB> 0.33: Profit * 1 = price
  • GpB< 0.25: Profit * 0.7 = price

This was the result of an evaluation of the web projects. Web projects with a profit of more than 0.34 euros per visitor also achieved higher prices than other web projects. So you can calculate your price even better.

Case 3: Web project with no profit and no traffic

For all web projects without profit or traffic, however, we recommend our price calculator. This calculates the price of your web project based on 5 criteria.

To the web project price calculator: Calculate the value of the website

Sell a web project on Projektify

Are you also considering selling your web project? You are at the right place at Projektify with this concern! As a free platform, our association offers you support in buying and selling web projects. With us you can create a sales offer for free. To do this, just click here .

But even if, on the contrary, you want to acquire a web project, we can help you. Please have a look at ours for more details Show !

We are also happy to advise you with our regular blog articles on various topics relating to online business and the management of web projects. We focus particularly on the topics Part-time self-employment , insolvency and Corporate succession . So feel free to read through our other articles.

Did you like this post? Then support Projektify eV and its members with a voluntary donation or simply by clicking on one of the banners of our advertising partners. Many Thanks!

We offer guest articles and sponsored posts

You have your own, interesting thoughts around the theme world of the blog and would like to share them in a guest article on my blog? - But gladly! You can thereby address customers and professionals.

Gendernote: I have used the masculine form for ease of reading. Therefore, unless an explicit distinction is made, it always refers to women, diverse as well as men, and people of all origins and nations. Read more

Spelling: I translated my German Blog to English - so you can also read my Recommendations. Please be sorry if this English is not so good.




Image-Source Titlepicture: Fotolia.de 2016 – buyed License
Auctionify-Team
Author

We are the international Version of Projektify.de a Marketplace for buying and selling webprojects. We give here recommendations for online-businesses and offer a tool for M&A Companies.