Traffic trend

The traffic trend of a website is going to be looked at in an almost identical way to the revenue trend. In fact, they often mimic each other very closely. Because of this similarity, I won’t spend a lot of time explaining this.

Optimally we want a website that has a consistent traffic trend that’s either seasonal, steady, or increasing, and we want to look at it over the timespan of a year or preferably 2.

An increasing traffic trend is the sign of a very healthy website and is typically a very strong investment. Steady traffic trends are usually just an indication of a website that hasn’t been updated in a little while, and in my experience they’re typically a little undervalued because of this.

Seasonal trends are especially important to look at over the course of a year or two! If the valuation of a website is calculated off of the 6 months where a website is making the most money, then you’re going to be paying too much for your website. You’ll want to average out the earnings over a long period of time in order to get the average earnings to then calculate the value.

When it comes to traffic, decreasing trends are almost always bad and I like to steer clear of them unless they’re a steal of a deal.