We are planning to sell a site of that we have developed. It has: - 16000 unique visitors p/month - $1400 profits ( $1300 downloads, $100 adsense ) - no effort has to be done for the above, it runs on itself - all figures can be proven by stats and paypal Besides the above we get a lot of outsource questions wherefore we have an average of an extra $1000 p/month. This varies, sometimes $500 p/m, sometimes $2000 p/m. So this I cannot prove but it will be a benefit if you have programming skills or an inhouse programmer so that you can take these jobs also for extra profit. Just to mention the potential. Costs: we have subscribed for a hostingpackage of 30 GB traffic and 2 GB space per month, therefore we paid $180 per year but that already paid. So when the year is over you will have to pay $15 p/m if you plan to stay. With the above details, how much should we be selling our website and where can we find persons who are may be interested? I ask this because its the first time that we sell a complete own-made website of us.
I saw this today in another forum. It's a pretty good response to someone wanting to sell their site:\ What is the target audience of the 16k unique? PM me if you like with details. I have interest in it, only if I can see the site. (makes sense )
It's a very general marketing / economics principle, but anything is only worth what someone is willing to pay for it. What may seem like it should be valuable to you, could be worthless to someone else who wouldn't want to put the work into growing it. What seems like it should be average to you may be worth a small fortune to someone who has a very specific interest and need in what you're offering. Value is nothing more than perception, and it's impossible to put an exact value on something. You can say what you want for a site, and you can probably get a rough estimate as to what an average person would consider it worth. But if you want a higher return on the sale, be sure to specifically search out buyers who have a distinct interest or need for what you're offering. You mention profits. But you need to compare that to the time put into building and maintaining the site. You also say it pretty much runs itself. Well if you market it to someone that way, you're going to probably get less than if you emphasize growth potential. If someone's willing to put work in to make it even more successful, chances are that they're also going to be willing to invest more upfront for the starting system you've got running. Just my $.02. Jenn
Sites tend to go for a multiple of net monthly earnings. Not because that's the most sensible way of calculating it but because it's one of the least complicated. A more complicated one - albeit one that introduces a lot of variables and unknowns - is Net Present Value i.e. today's value of future earnings: a discounted figure. The obvious problem is that projections of future earnings are subjective. Multiple of net monthly income valuation method assumes that future income will continue along the same path as past income so if there is any factor that raises the possibility that future traffic/income may not be as it was in the past then buyers would be reluctant to use this method. In your case it seems that multiple of net monthly income is how most buyers in webmaster forums would value your site. And the multiple tends to be anywhere from 6x to 18x. Hope that helps. You may find more info here.
There is a lot of discussion on this topic here: http://forums.digitalpoint.com/showthread.php?t=106521
Yes, but not about much about valuation methods. Just one woman's dreams of getting a six figure sum for a site earning $xxx per month
target audience are webmaster and programmers 90% of them are people that are developing or having/wanting a website/webproject to be done. PM me if you are interested and let me know what info you need.
What made you think I hadn't? It was largely a waste of time from the point of view of the questions raised here. Apart from nevetS's there isn't a useful post there that answers the questions raised in the OP i.e. "how much should we be selling our website and where can we find persons who are may be interested". To be fair to the poster in the other thread... she wasn't looking for valuation methods. And she's not looking for buyers. I attempted to answer the first question here and provided a link for the second.