How do you calculate the value of a website?

The value of a website can be calculated objectively, just like the value of a house. In this case it is not about the square footage, number of rooms or location, but about the number of visitors, how much these visitors are worth and how easy it is for potential customers to find your website, without the use of paid advertisements.

Website value

Number of visitors

Exact number

You can determine the number of visitors by using your web analytics tool, such as for instance Google Analytics. If you look at the searches people make to find your website (Search Console), you will get the number of visitors per search query per month.

Estimated number

Unfortunately, this data is only available to the website owners themselves and you cannot take a peek at how well or badly they are doing. However, you can make an estimation based on how many visitors per month type that query into Google (search volume) and the position for which the website is ranking for that query.

The number of visitors that a certain ranking result brings, decreases as you move further down the top 10. Below you can see the percentage of people who, after typing a search query in Google, click on that specific ranking. This is also known as the Click Through Rate (CTR).

Example calculation of number of visitors

When users type a query into Google 100,000 times per month, e.g. ‘rent a holiday home’, the first ranking will receive 28,500 visitors for that keyword alone. The second ranking gets 15,700 visitors and the 10th position still gets 2,500 visitors. Results on the 2nd page in Google – ranking 11 to 20 – will get less than 1% of visitors.

Value of the visitor

The best known method for buying visitors is through Google Ads. You enter a keyword and the budget you want to spend, and Google will display your ad when someone enters the keyword. Depending on your competitors and the budget they spend, you will bid against each other. The ad of the one with the biggest wallet, will be shown highest.

Cost per click (CPC)

The amount you pay per visitor to Google Ads is known as the cost per click or CPC (Cost Per Click). Google Ads uses 2 rates:

Displaying on the first page

This is the minimum amount a visitor will cost you if you want the ad to be shown at the bottom of the first page.

Display first in place

This is the amount per visitor you will have to pay when you want your ad to be displayed at the very top of the first page.

Formula

If you know all the search queries on which a website is ranked in Google, calculate what the worth per search query is and add them all up, you get the value of the website. This is expressed in € per month, because that is what it would cost per month if you would have to ‘buy’ all those visitors through Google Ads.

Disclaimer

The data we use is obtained as a result of the more than 800 million searches we monitor worldwide. Statistically, this provides an accurate picture of how a website ranks in Google and, as a result, how much it is worth. This data is purely informative and may not be used for any other purposes, e.g. selling websites, determining the market value of an e-commerce site, etc.

Find out how much your website is worth here.

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