The other day we discussed How to Determine the Value of Your Online Business and in that article we explained what “Assets” are. We mentioned that Social Media is absolutely an Asset that would be included in the sale of your company.

So today we are going to talk about how exactly to determine the worth of your social media accounts. NOTE: I have watered-down this article to be as simplistic as possible for beginners. If you are an advanced business owner and understand ROI, CTR, CPT and more, this article is NOT for you. Let’s begin!

First, make sure your accounts are BUSINESS accounts because you need access to data that you usually can’t get with PERSONAL accounts for the sake of true value determination. If you are currently using a personal account as your business account, either convert it to a company account or start a new account TODAY. Do not wait! Every day you put it off is a waste. Just get it over with. When you have a business account you can genuinely access amazing amounts of data, including the gender, age, demographic and geographics of who interacts with your posts; this data is huge when it comes to calculating worth.

Now that that is out of the way; there are only a few factors that go into determining the value / worth of your company's social media accounts.

• Likes / Subscribers / Followers (Let’s generically call all of these “Followers”)
• Reach - how many people are reading / watching your content…. The number of people your content is “reaching”.
• Interactions - Shares, Reactions, Downloads, Pins / Saves, Mailing List Subscriptions, Coupon Code Redemptions / Purchases, Referrals, etc. Meaning - someone not only SAW the post but they also did something.

With this in mind, a profile with 1 million people following doesn’t automatically mean it’s worth a lot. In fact, a social media profile with 3,000 followers that gets 250 interactions per post is likely worth more than the 1-million Followers and 0 Reach.

Let’s think of it in more simplistic terms: Which of these 3 business would you rather buy -

1. A business that has 100,000 shirts and sells 0 a day, every day.
2. Or a business that has 70,000 shirts but sells 200 per day, every day.
3. Or a business with 50,000 shirts but sells 1,000 a day, every day.

Two of the three are actually businesses whereas the other is more of an “idea” (or, you could even call it a “failing business” because it generates $0 in revenue).

Now it’s time to discuss your Social Medias value, also known as “valuation”.  Here's the most simple method possible:

There is a (100% Free to use, no download or account needed) site called SocialMediaValue.io that will help you see how much each of your posts are worth on Facebook, Instagram, Twitter, Youtube and LinkedIn. You may be really surprised at how valuable your accounts are, even if you have a small follower count but has lots of interactions from the small quantity of followers.

In theory, we could say that if your business Facebook posts are worth $3 each and you post 3 times per day, your Facebook account would be worth $3,285 (based on one years value: 365 days in a year x $9 per day = $3,285). Let’s say that you determine your company Twitter is worth $5,000 and your Instagram is worth $2,000. With just these 3 social media business accounts, you have over $10,000 in additional assets to add to your business current-year valuation. 

TIP: "Native Posts" have more "reach".  This means if you upload directly to Facebook, your post will have more reach than someone (like BigBrandWholesale) who uploads to Vimeo then uses Vimeo to auto-repost to Facebook and Twitter.  So if your goal really was to make your social media profile worth as much as possible you absolutely want to directly upload to it.