I'm using this site to check the value of my site: Website value calculator and web information
When I type in my sites' name in to the google search bar, the values of my sites are shown, and they are evaluated by this site.

Now, my PR4 business related site (BGN Entrepreneur - Business Growth Network Entrepreneurial – Daily Fresh Business News) worth$6117.4 USD and my entertainment site (You Know Where You Are) worth $2029.4 USD

I just got a problem with the backlinks to my sites. According to the result shown on this site, the backlinks to my sites are all 0. I'm not sure if it is accurate, as I've seen different evaluation of backlinks to my sites by other evaluation sites.

Website value calculator sites are useless IMO

DON.

In my opinion, a blog is worth nothing without his owner. Because the subscribers of that blog are reading it because they like the way the author is writing. And is the blog would be sold and someone else would start writing, even if the niche remains the same, the articles won't have the same way unique thing from the author, that gives them value, and that makes visitors read the blog.

You are right @Ovidiu, regarding collective blogs. But let's take a blog from the IT field. You spend some time reading reviews on it, and you like the way they're written. And after some time, the blog is sold to someone else, that writes the reviews in his own, personal way. Totally different from the old owner, and from what you were used to. What would you do? continue reading reviews on that blog, or find a new one? (of course, this assumption is not verified in the case when the new owner does a better job than the old one).
What I was trying to say was that when selling or buying a blog, the value of it can be very sudden increased or decreased.

Would anybody guide me to how to calculate the worth of ones blog?

Originally Posted by musheer

Would anybody guide me to how to calculate the worth of ones blog?

Here's my ideas on valuation. I would value a blog or any website the same way I would value any business.

Originally Posted by surreypcsupport

I wouldn't use turnover to value the site. I would multiply annual profit by between 3 and 5 times depending on other factors.

I would look at salary/wage costs. If the site requires a person to run it I would want to see that person's salary in the accounts. If the salary is too small to live on then I would deduct a typical full time salary from the profit before multiplying it up for the valuation.

It's all very well saying "I made £20,000 profit from my website" but if you didn't take any salary and the site requires say 20 hours a week to run then really the profit of the site is zero if you took payment for the work by drawing the profit for yourself.

In addition, if there was only say 1 years accounts then I would be more likely to value the site at 3 times profit. If on the other hand the site has made consistent profit for say 5 years then I would be more likely to value the site at 5 times profit.

Another important factor is the level of liabilities although there are unlikely to be too many liabilities for most websites. Think about Lloyds's purchase of HBOS and you will understand why this is important.

I would also look at ROI to understand the level of investment.

just pluck a figure out of the air, based on age of blog, contents, traffic etc

Originally Posted by ellen8547

just pluck a figure out of the air, based on age of blog, contents, traffic etc

Interesting approach. I guess Lloyds TSB took the same approach when they bought HBOS.