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How does Worth Of Web Calculator work?

Aykut Pehlivanoglu (Founder of Worth Of Web Academy) explains:

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

I will try to explain basics about our algorithm here.

Input:
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 sell stuff online which is impossible for us to know how much they make. Some do not use advertising or any other type of revenue source, so our figures will show only the potential of that website. We “assume” that the 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 to help you track your progress. Improving websites, blogs, and online businesses is a difficult task. We are in this industry. In the past, we tried to improve lots of websites. We felt the need for a tool that could create a score/ranking to track our progress and to compare ourselves to competitors.

We are totally aware that it is practically 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 build 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 and showing it as an indicator on our reports earlier. Now we don't use PageRank in calculation process or show on our reports. We stopped using it after Google changed its policy on sharing "Toolbar" PageRank. You can search for "PageRank dead" on Google. You will understand better after you check various articles about this change.