Welcome to part five of our buying websites guide.
Previous chapters included:
Site ownership changes
Site buying multiples
Importance of the industry
Traffic relevance
Today we are going to look at how important the quantities of traffic are for a sites value.
This is going to be a tricky one to explain without contradicting myself, but I will try my best.
Traffic Quantity – Buying Websites Guide
The traffic levels are the main factors used to gauge a sites value. But I feel that this is a factor that is often over valued. For example, I have seen sites that have 10,000+ visitors per day that make a loss, and I have seen sites that have 20 visitors per day that make a lot of money.
So focus more on revenue than the traffic levels. Also pay more attention to the traffic relevance than the actual traffic levels.
This is probably the main error site buyers make when valuing a website (the other error is paying too much attention to pagerank).
Summary: Don’t be blinded by the numbers! focus more on the quality of traffic.