Shoemoney.com once wrote in the blog about how he'd price a website for sale or purchase: Average monthly income for the past year * 40.
Some guys say he'd go with 30 instead of 40 though.
I have one particular website that has averaged about £100 per day consistently over the past 3 and a half or so years.
And by averaging around £100 a day I mean consistent - earning over £30k each year for the past 3 years.
To be blunt, I've got other projects to concentrate on.
I'm interested in how somebody would value such a site to sell on to somebody.
Would you price it at 1,2,3,4,5,10 years profit?
And where should I be looking to find serious individuals to sell such a site on to?
Shoemoney.com once wrote in the blog about how he'd price a website for sale or purchase: Average monthly income for the past year * 40.
Some guys say he'd go with 30 instead of 40 though.
Depends how much room for development there is with the site. If its at full speed and nothing else can be done or its a dying fad then it going to be lower than something with future potential. Does it rely totally on its serps position or does it have repeat visitors?
I think 40* the monthly income is rather large - that saying though I cant make a judgement without knowing the facts.
Ta
Baz
It is impossible to give answers to your questions without knowing alot more information first such as
1. Is the £30k+ all profit ?
2. Are there any running costs ?
3. How long does it take to maintain a day ?
4. Is there room for growth ?
5. Is it in a perishable industry ?
6. Are the earnings based on serps placements ?
7. Is it an affiliate website or ecommerce / similar ?
To put it another way, It is like someone asking you "how much could I sell my BMW for, it is 3 years old"
You would need to know lots more about it first - mileage, condition of the car, model of the car, does it have service history etc etc.
To get a more realistic valuation, you need to give more information about the website in question.
Drop me a PM or email me if you want as I know a few people who may be interested in aquiring such a website, but would obviously need to know more about it first.
Either way - good luck what ever you decide to do with it![]()
Never look down on someone unless you are helping them up. Fwitter
rob.co.uk (21-11-09)
I always thought its the monthly average x 12 and if you are lucky 24
there are way too many scammers out there nowadays...
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Another way to look at it is think like an investor, buying a site slightly different to investing a company (for shares) to make a profit but is another way to think
I pay £30,000, how long will it take me to recoup that money and then make X% profit on top. In my experience investors want their money back + a decent profit in 2-3 years, sometimes more, sometimes less. So I spend £30k buying the site and I want £30k profit in 3 years, means the site has to generate £60k profit in that period.
Let’s assume the £30,000 a year you mentioned is all profit after taxes, overheads etc, it would take the buyer/investor 2 years to reach his target of £60k
There are lots of other considerations to the above, is the revenue sustainable, how much work is involved to maintain the site, what market is the site operating in, what does that market look like, is there growth potential and the chance to increase the revenue from £100/day to £200 day and at what cost
All figures are examples only LOL
Stuart
@stuart good point - I would never buy a website without escrow etc...access to the stats, payment processor etc..
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Sorry I've left it so long to respond.
I did have a decent offer of 2x yearly income at £60k but I thought this was undervaluing the business so I instead have decided to include site updates within an employee's job desciption. Probably 10 hours a week of their time.
I would have sold at around £100k as this was a business model that has potential to continue indefinitely but at 2x income it just wasn't economic sense.
The lessons I have learned are that some sites are temporary and some are more enduring. I'm sure I have chosen the right option.
Still none the wiser to my questions though ? !
Never look down on someone unless you are helping them up. Fwitter
I was just checking a couple of sites on flippa and what always surprises me is that lots of these sites which claim to make money are PR0, have 0 backlinks etc -I always thought its the monthly average x 12 and if you are lucky 24
there are way too many scammers out there nowadays...
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