What would you pay (i.e. valuation) for a site?
- Thread starter jewin
- Start date
probably more than 6 months worth, if all that was verifiable. Your poll options are way too short, verifiable and consistent revenue-generating sites often sell for multiples of 3+years revenue.
depends if the products were turnover, or cemented.
fad products or beauty staples? BIG DIFFERENCE.
fad products or beauty staples? BIG DIFFERENCE.
Still not nearly enough information.
Is the product seasonal, or something that has a lot of buzz now (for instance are you ranking for 'free ipad2', which will become useless as soon as the ipad3 comes out)?
Is it a shitty weightloss flog ranking for 'can i lose weight for free'?
Is it an offer that relies on one advertiser who could bail at any minute?
I could go on and on with questions like these.
Have you been building a list? I've sold a site before for over $5,000 that was losing money just because I had a large memberbase that the new buyer could email.
If everything on the site checks out, I'd pay 10-12 months revenue.
10-15 months revenue if its a real company.......Those are general numbers but that is what investors look for this type of a site.
If I am understanding this correctly it would be way more slanted to the long term if you are looking to be continually profitable and/or successful. This is common sense but no one is going to build a site, market it for a simple flash-in-the-pan pay. You usually invest much more that you value more the longer it goes and vice-versa. All really depends on what exactly you are trying to do.
Thinks of it logically. If you earn 200$ a month from a site, there are two selling scenarios:
a) you need money fast. Then you can lowball and sell it for 10$ or 200$ or 400$ or whatever
b) you are trying to make as much money as possible. then you have to think a bit more longterm. think about 12 month. how much money will you make when you keep it for 12 month? how much work is it to keep the income level for the site? how much risk is there that the profits drop suddenly? so when you are 100% sure the site will earn 200$/month for 12 month with almost no work, you would be stupid to sell it for less right? same goes for 24 or 36 month. what you need to do is convince the buyer that the site is a safe bet. Less risk = more longterm planning possible = more value for your site. If however you need to work 4 hours a day two keep that income level, the site gets a lot less attractive.
Etc.
a) you need money fast. Then you can lowball and sell it for 10$ or 200$ or 400$ or whatever
b) you are trying to make as much money as possible. then you have to think a bit more longterm. think about 12 month. how much money will you make when you keep it for 12 month? how much work is it to keep the income level for the site? how much risk is there that the profits drop suddenly? so when you are 100% sure the site will earn 200$/month for 12 month with almost no work, you would be stupid to sell it for less right? same goes for 24 or 36 month. what you need to do is convince the buyer that the site is a safe bet. Less risk = more longterm planning possible = more value for your site. If however you need to work 4 hours a day two keep that income level, the site gets a lot less attractive.
Etc.
volatile or stable product? How many advertisers have the same product ie is it relying on one advertiser? how long been around etc? Information is power!