Frank, when the value of websites is measured in multiples of net monthly income, it is difficult to put a value to a site that's
never made a profit. Unless buyers can see a definite route to profit they tend not to invest money in it. In very rare cases where they do, they have to value the site on very subjective factors like the domain name, how the content can be stripped and used elsewhere, what ideas they have for the database etc., - all factors that rely very much on individual buyer's perceptions and ideas. Any tool that claims to value such sites accurately is not one I'd trust.
See how various tools compare when valuing sites.
The
website valuation tool you point to can be used in a variety of ways:
1. Play around with it to see how much YOUR site would be worth at different levels of income. As you increase the income and/or reduce management time involved, you'll see how that affects the price your site would fetch in the market. It gives you an idea of what you can aim for and you can decide whether the end result is worth the extra effort.
2. Use the tool to do due diligence on sites you're looking to buy. It provides a quick snapshot of domain age, DMOZ and wikipedia listings, Google PR and indexing, Yahoo responses for linkbacks and linkbacks from .gov and .edu sites, Alexa and Compete graphs and more.
3.
Browse other sites that have been valued to find ones that the webmaster is accepting bids on - great for finding sites that haven't come up for sale yet.
4. Use it as another way for people to find you. For example, if you search Google for editor sink . com at the moment, this valuation ranks second to the main site itself. It even has a double entry i.e. two places in the top ten.
5. LOL, even fill in the values to get a billion dollar valuation for your own site and post the widget on your blog showing how you are worth more than Google
