A Useful Guide To Valuing Your WordPress Website
Stage  – Where is the asset value within your WordPress website?
The value of a business asset is a highly subjective topic, but as with all things in business, there comes a day when readily crystallising financial value becomes a priority.
Assets in your businesses are like vessels. They either hold value, or are empty. They either are profitable or loss making. A WordPress website is no different.
The following is our advice of what makes a WordPress website valuable…and why:
- Domain name: branded, duration of ownership, privacy, TLD, other TLD variations owned, HTTPS
- …branded domain names have greater asset value due to instant recognition
- …remaining duration of ownership is equivalent to leasehold on property – more time, more value
- …domain ownership privacy keeps personal ownership records out of the public domain
- …both .com & .co.uk are the most reputable top level domain extensions for UK based businesses
- …other TLD variations like: .uk or .co are worth buying to prevent other businesses occupying alternative brand related domain names
- …a security certificate gives encryption protection to online customers
- Hosting package: VPS or shared, managed, cPanel or equivalent
- …dedicated VPS server space, whilst more expense offers greater security, speed and bandwidth for performance
- …a managed hosting service means you’ll have experts on hand 24/7 to keep you WordPress website LIVE online
- …cPanel is a highly user-friendly server management tool which is easily used by beginners for performing simple server bases tasks
- Backup & updates: scheduled, automated
- …backup and updates are essential for utilising the latest versions of software and having an archive of your website saved somewhere either online or on a local machine
- …automating such updates and backups on schedule means you are never caught short and with minimal effort
- Speed: fast/slow
- …fast websites keep the audience’s attention longer and convert many more enquiries and customers
- Mobile responsiveness: yes/no
- …with increasing amounts of viewers accessing websites via mobile devices/smart phones it is a good long term investment to ensure you website is mobile responsive i.e. maintains good formatting for viewing on mobile phone screens
- Cross browser compatibility: consistent/inconsistent
- …there are many browsers which your website could be potentially viewed on by a website visitor, so a website which renders well across the board will perform better
- Theme: bespoke or 3rd party (reputation of theme/framework?)
- …bespoke isn’t always best, but clearly the more customised the design, the more unique and therefore recognisable your brand becomes
- …if your website is built using a 3rd party theme or framework, then the more reputable the theme, the better
- Clean code: lightweight, lean, standard coding practices
- …coding without error and with coherent commentary helps hand over to other web developers taking on the maintenance or performing redevelopment work
- Custom frameworks: Bootstrap, W3.CSS etc
- …styling frameworks which are popularly used by many web designers makes for easier custom changes, should your web development personnel change
- Permalinks: meaningful or otherwise
- …permalinks which are meaningful and memorable are more user friendly for your customers
- Applications: bespoke apps for customers/prospects
- …bespoke onsite applications built for the purpose of enriching the customer user experience
- Plugin: dependence, premium/free, support
- …plugins grant specialist bolt-on functionality, but can come with drawbacks which can compromise the integrity of your website ongoing
- …support is a major consideration when assessing the feasibility of utilising a plugin for a critical function of your website – you don’t want to adopt a plugin which becomes redundant or develops impaired functioning in the future
- Custom templates: fields, posts, pages, forms
- …custom fields, templates and forms all add value to a more customised feel for customers when visiting your website
- Integrated: analytics, e-newsletters, CRM, eCommerce, EPOS, accounting
- …integration of your WordPress website with other softwares and services which your business depends on could be critical to maintaining a seamless, unhindered workflow – saving copious amounts of time and expense
- Internet marketing: On-page SEO, backlink profile
- …how well connected and networked your website is online will dictate it’s ability to be seen by potential customers – keeping tidy on-page presentation and external links referencing page addresses of your website will have a knock on effect of generating traffic
- Information architecture/User experience: conversion rate optimisation
- …the more user-friendly your website is to customers, the more valuable a resource it becomes to them and the greater the appetite becomes for consuming your content and eventually products & services
- …improving the joined-up nature of your website’s content leads to better user experiences and conversion of viewers becoming customers
- Page and posts: quality, quantity, search engine indexed, keyword targeting, ranking
- …the purpose of your website is to carry valuable commercial communications pertaining to your business’s products and services
- …popular marketing industry studies show volume and quality of web content published over time has a direct impact on the traffic it generated from prospective and existing customers
- Targeted traffic: volume, consistency
- …drawing in consistent audiences to your website keep your business reaching out into the marketplace for commercial opportunity
- …targeting the common questions and sticking points for customers with your web content makes for a more targeted approach to lead generation
- Tracking & analytics: user flow mapping, key metrics
- …finding out how your customers use your website grants you opportunity to improve their experience and produce higher return on your web investment
- …staying abreast of key metrics keeps one in tune with performance at any given time
- Lead generation: how much business your website brings in & how often?
- …your website’s ability to generate commercial opportunities is intrinsically linked to ROI
- …volume and frequency of leads generated can be quantified for calculating it’s bottomline contribution to company profits
Stage  – Documenting a web valuation audit
According to the points above, cross reference how your WordPress website performs.
All parameters ought to be satisfied therefore making comprehensive declaration of what is under the hood of your online marketing vehicle.
An excel spreadsheet should do – why not use our ready made formatted version?
Stage  – Sustainable annual profitability
Essentially, profitability is the driver for all business value…whether short term or long term.
But sustained profitability is where the premium for your eventual asset transfer receives the most significant value.
What does sustained profitability mean?
Simply, the measure of how well protected the profit making nature of an asset really is.
In other words, if your WordPress website makes a profit, what are the factors contributing to it remaining that way, and for how long will those factors stay put?
Whilst the value factors in stage 1 at the beginning of this article are a comprehensive array of points relating to sustainable profitability, they could be gathered together and further simplified into the following categories for overview purposes:
- Ownership & Control
- Technical robustness
- User friendliness (backend)
- Usability (frontend)
- Direct Profitability
Whilst factor number 12 in the list above is direct profitability, the other 11 factors contribute the final valuation figure’s sustainability and growth potential.
Where these supporting factors weigh in favourably, the premium transfer value derived from the root direct profitability is greatly bolstered, giving solid grounds for increased investment value.
Want a quick estimate value of your WordPress website?
As for a neat formula for calculating an example WordPress website valuation…we are currently working on a winning formula to power a smart online calculator.
Fill in the form below if you would like help valuing your WordPress website or would like to receive a link to our calculator when it launches…