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February 2, 2015

Google’s Panda and Penguin Updates May Raise Site Values

SEO Targeting
Photo Credit: Augur Marketing via flickr

We’ve all seen the many, many posts, articles, tweets, and rants about Google’s Panda and Penguin updates. It’s true that the basic intention of these updates (according to Google) was – and is – to improve the quality of the content that seems to proliferate exponentially on the Internet, thereby also improving the websites that host it, thereby improving search results.

Theoretically.

It seems to be working out that way, for the most part. But what I find interesting is that I’ve seen a ripple effect from Panda and Penguin extend into the website brokerage industry, and it’s been both a blessing and a curse.

Ranking is More Difficult – And so are Website Sales

Late last year, while at Rhodium Weekend, I spoke with a few other website brokers about what we’ve all been seeing in terms of volume. We all pretty much agreed that finding quality businesses to sell seems to be a bit harder this year than it was last year, or the year before.

But I’ve also noticed that although the quantity has dropped somewhat, the quality of sites coming up for sale has actually increased.

One reason for this may be that Google is effectively taking out low-quality sites. (Obvious statement of the year award, here I come!) The thing is, we often think about this in terms of Google trying to increase the quality of their SERPs, and what that means for how we position our websites.

It’s a bit of a tricky proposition, but what it could also mean is that while Panda and Penguin can be seen, in some instances, as destructive updates, Google could actually be making our businesses more valuable.

Short-Term Drops Lead to Long-Term Gains

When a market overvaluation is discovered, a subsequent result may be a stock market correction. The market declines 10 to 20 percent, people lose money, and then the market slowly rights itself, regaining what was lost, and then some.

A similar phenomena takes place quite often when a new Google algorithm update is announced. Some sites may drop a few spots in the SERPs, while others nearly drop off altogether. As time passes, and both the intentions and the true effects of the update come to light, the SERPs adjust, and many sites regain at least a bit of their footing.

I’ve seen the same thing happening with online businesses in the wake of Panda and Penguin.

The short-term effect of these updates has been to actually reduce the value of some businesses as buyers see online business as being risky (read: subject to the whims of Google). But upon closer inspection, I find that what Google has effectively eliminated from their SERPs are the “websites that make a quick buck” as opposed to the “online businesses.” A main difference is, online businesses typically have profiles that lend themselves to more stability, which is a positive feature for buyers.

Good Ol’ Supply and Demand

By eliminating thin content sites, Google has effectively reduced the supply of sites for sale. This, in turn, will put upward pressure on the higher-quality sites. Couple that with the fact that these updates are forcing website owners to turn their money-making websites into something that looks more like a business with a lower-risk profile, and the possible results are higher valuations. There’s no denying these updates hurt a lot of people, some of whom were collateral damage or simply following bad advice (that also just happened to be the wisdom of the day). But if you survived these updates, congratulations! Your site is now more valuable.

The Downside in Both SERPs and Sales

It’s true that a lot of the people who experienced negative effects of Panda and Penguin were cutting corners. But some of those people never knew those corners were being cut. They were just following the path of the original corner cutters – very loud SEO “experts” who preached some of these tactics, or if they didn’t preach them, they at least practiced them (which is more damning). I definitely think there is a need to be sympathetic to those who were victims of their own ignorance.

In addition, I’m not a fan of the total brand bias Google now seems to have. I think it makes it so difficult for a small startup to get traction without a huge budget. And while this can be good to keep the low-quality businesses and sites out, it’s also sad, as I’m sure many projects simply don’t make it because they have trouble gaining that initial traction against their larger, better-funded competitors.

Not only do those sites have more trouble ranking and competing, they have more trouble building their value to be sold later on, whether that’s an initial goal or not.

High Quality Can Mean a Higher Price

Google will continue to evolve and update its algorithms, and we’ll all just have to roll with the punches. But it’s possible to try to head off any issues by ensuring your site’s content is of high quality, and that your link building efforts are following best practices. Ride out the updates, stay competitive, and you may find yourself able to demand a higher price for your business.


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35 Responses to “Google’s Panda and Penguin Updates May Raise Site Values

    avatar Greg says:

    thank you for sharing

    avatar kant says:

    good piece of info about Google penguin and panda updates.

    avatar Lindsey says:

    I shudder every time I hear that there is going to be an update. It always feels like I’m going one step forward and then TEN steps back after one.

    avatar Kolkata says:

    Thanks a lot for sharing such informative post.

    Great article this explains quiet a lot on what has been going on with our site.

    avatar Earnistan says:

    It has been a curse for us so far but we are expecting good ahead.

    avatar Bella Vici says:

    It’s been a curse for us too – at one time we had a thriving online furniture and lighting store but the change forced us to get our sales by abandoning our brick and mortar store. Now trying to figure out their game! Thanks for the article!

    SEO is becoming more and more difficult but more and more fair. If it weren’t for the Black hat practices it wouldn’t be so tuff.

    I just don’t know anymore. We don’t even offer SEO as a service anymore. Our firm was top 5 for 8 years and pushed to page 5 – Yes we did some link building but not over the top. It’s almost depressing. It feels like no-matter what we do it’s not making a dent. Being a small company and putting hours and hours into social – blogging just feels like a waaste of time.

    avatar Igor says:

    Am I the only one who feels that article is about nothing?

    It’s not Google or one of those domain-estimation websites that determine the price of your website or business.

    99% of the time those estimations are not even close to the real number which they base on the number of visitors, the amount of unique content, domain age and the backlinks.

    The real value is measured in real $ it brings on the annual basis along with the number of clients and a few other things.

    avatar Nazmul says:

    Very Helpful post. Very very thanks for your post.

    avatar Nazmul says:

    I am happy for this post. Thank you.

    Eyecare

    avatar Marc says:

    I agree that website with thin content not promoting user friendly information should not be promoted if the search engines look for great content. Relevant content doesn’t mean an article filled with stuff but actually information which is very helpful for anyone who seeks it.

    avatar Jasa Seo says:

    interconnected between the website and other websites. thank you for sharing

    I just hope that my website’s value increase this way! NO more to ask for than becoming a rich man out of flipping sites!

    avatar Vikas says:

    Thanks for sharing about Google’s Panda and Penguin Updates May Raise Site Values. Your content very useful for us…………

    avatar Vinny says:

    Good information about Google’s Panda and Penguin Updates May Raise Site Values. This information really informative for us…….

    avatar Aventura12 says:

    SEO is more difficult now a days. If you are work according to the Google policy then panda and penguin raise your site values. If you not then the will harm your website. So do according to the Google.
    Thanks for sharing a great article.

    avatar kamagra says:

    Keep on doing what google wants and it will pay off in the long term, however find other means of generating sales in the mean time, If you have a big customer data base use this to create well thought out email campaigns and this will keep you ticking over untill your site gains rank again

    avatar EZ Storit says:

    This is great news for domain name brokers, but for the average business owner who wants to grow their presence online, domain name value has really no value. Small businesses just want to rank higher in google results in their local market and the newest google updates are making sure local places with good content are being found. Good article though.

    It appears we website owners will have to work continually harder in improving our SEO and content if Google keeps raising the bar with their updates. Thanks for sharing.

    avatar E-Fumadores says:

    It’s driving me nuts. Are you just finnished, starts Google fooling around again. But…It’s about time that the search engines start focussing on quality. The amount of crap on the net is way and way to much. So, let’s put in an extra bit of work again and help cleaning up the net by putting up great content and quality sites.

    avatar Rene says:

    Thanks for the info. It’s hard to keep up and for small businesses almost unafordeable to have your seo done. Articles like these help out a lot.

    avatar Nitin Jain says:

    I couldn’t agree with you more. Google has had a positive impact on businesses that have given (or are now giving) impetus to quality in terms of everything they do online and offline.

    This seems to be one that will drain the power in this year, because there are too many updates from google algorithm

    Thanks so much for sharing. Nice blog for get information about new updates of Google.

    avatar Mazid Irshad says:

    Hello,

    Great information.Yoe explain everything in very easy manner which make this post very easy to understand.Thank’s for sharing about Google’s Panda and Penguin Updates May Raise Site Values.

    Have a nice day!
    Regards,
    Mazid Irshad

    avatar Sapna Delhi says:

    Very very nice explanation, it will help me more… when will be next update

    very nice it appears we website owners will have to work continually harder in improving our SEO and content if Google keeps raising the bar with their updates. Thanks for sharing.

    avatar Vanessa Ally says:

    Site value is rising but when I try to sell my sites nobody is buying. Are you sure there is market for such sites right now?

    avatar sai says:

    This is a very good news to all Indian or world seo People. Google shares a good news to all Website builders. Thanks for sharing good article.

    avatar 24manai says:

    awesome post. xD

    avatar juhi sharma says:

    very nice it appears we website owners will have to work continually harder in improving our SEO and content if Google keeps raising the bar with their updates. Thanks for sharing. good sir keep it up

    Lot’s of doubt has cleared after reading this post. I have lots of questions regarding SEO and Google updates. Almost everything is clear now . You explain in such a wonderful way. Thanks.

    avatar Ankit says:

    Hello,

    Great information.Yoe explain everything in very easy manner which make this post very easy to understand.Thank’s for sharing about Google’s Panda and Penguin Updates May Raise Site Values.

    Have a nice day!
    Regards,
    Ankit Rawat

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