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How does Worth Of Web Calculator work?

Aykut (founder) explains:

Our users come up with these questions often:
“How did you calculate this website worth?”
“How did you estimate these numbers of visitors and pageviews?”
“How did you calculate daily, monthly revenue? We don’t make any money with our website.”

I will try to explain basics about our algorithm here.

We use public traffic ranking data to start with our calculations.
We use Alexa Rank to estimate traffic figures; visitors, pageviews.

Revenue of a website:
We use our traffic estimation to calculate “potential” advertising revenue of a website. We know that every website is unique. Some sells stuff online which is impossible for us to know how much they make. Some does not use advertising or any other type of revenue source, so our figures will show only potential of that website. We “assume” that website is using ads and affiliate programs to make money.

Ranking of a website:
Estimated website worth: We calculate it based on our estimation for daily, monthly, annual revenue.
WOW Score: We calculate it based on traffic figures we used.
WOW Rank: We give it a rank based on WOW Score.

Accuracy of Worth Of Web Calculator:
Our mission is to provide a test / comparison tool which you can track your progress. Improving websites, blogs, online businesses is a difficult task. We are in this industry. We tried to improve lots of websites, and we felt the need for a tool which can create a score / ranking so that we can track our progress, and we can find out our place compared to our competitors.

We are totally aware that it is like impossible to be accurate with these estimations. After all, we are using public ranking systems which are not so accurate in the first place. Then we built our report based on these numbers and on our assumption that website is working on advertising/affiliate revenue model. So, please don’t expect anything 100% accurate.

* Note for PageRank:

We were using PageRank in our calculations earlier, but we stopped using it after Google change their policy on sharing toolbar PageRank. Now we only show it on our reports as an indicator.

There are 2 types of PageRank. One that Google uses in their algorithm internally, they continue to update it regularly and it is still part of their engine. Second that you see around in browser toolbars, calculators (like on Worth Of Web Calculator), they didn't update it for a very long time. So it does not mean that your off-site SEO efforts are for nothing, your "real" PageRank continue to change every day. Just Google does not update "toolbar" PageRank every 3-4 months as they used to earlier. Why don't they update toolbar rank? Because people abused it, focused on just that rank, not user experience.