Assessing e-commerce site value

8

85VicWagonGuy

New member
Feb 12, 2009
103
1
0
Boston, MA
The Sell/Buy/Trade section seems to be all business, so I'll post a question here.

I own an e-commerce site (100% SEO) that, since 2006, has averaged $5300/mo in commissions. I also have had an exclusive contract with the merchant to keep startup competitor affiliates out.

Any thoughts re: assessing a sale value to this site?
Recommended site brokers?

Thanks.
 


What do you mean its an affiliate site or ecommerce site? Do you sell then drop ship the merchandise or do you refer the customers to the merchant? Its not too clear and the value is very much based on your business model in that respect.
 
We sell the merchant's 9000 products via our own e-commerce sites. We're able to get much better SEO results than the merchant, who sticks to PPC. We account for 25% of the merchant's total online sales.

We take the orders and payment info securely then pass it to the merchant who processes the credit cards and fulfills the orders.

We also have several affiliate sites that offer products from merchants with 10s of 1000s of products (we seem to have good luck with large catalog sites), and those sites refer the customers to the merchant's sites to complete the sale.
 
This depends highly on a couple things - namely what the terms are for your "exclusive" clause. If it's fairly airtight and you know it will last indefinitely OR for X years or more then that helps. If it could be cancelled at any time it takes away from the potential value.

I'd say the minimum it would be worth though is two years net profit.
 
The other way to value this would be to figure out how much of a payment could be supported by a 5-year business loan for this.
 
You must log in or register to reply here.
Top Bottom
Back