How much would this portfolio sell for: 1) 30 sites with relevant domains 2) Each site has 4 unique articles based on the niche of which it is targetting. 3) All of the sites has the same design w/ integrated wordpress. 4) Sites are generating $30/month consistently. 5) Sites are generating 200 impressions per day. 6) Sites are ranked top of search engines for their keyword. Please do not state "it varies based on SOME factor". I need a rough estimate.
Tonyriz, I do not consider a 6$ off 1,000 visitors to be high income. Most of my sites target non-existent (in the web world) niches. $350-$450?.. It seems you are basing this figure off of less than 1 year revenue. I have heard that the average is 30-36 months.
That's just my two cents. But you might think it's worth more than it actually is due to you building the sites. Here's my justification: You have very little content on your sites, and the design is not unique, which suggests a sort of mass-produced business. Site sales are often based on 10-12x monthly revenue unless you have a unique script or clever idea. If your domain portfolio is good, that drags up the value, but if it is generic or just generally poor, that doesn't add much value. I think it is actually $5/CPM, and that is a very decent income. A lot of long tail sites make less than $1/CPM.
What was your total investment to purchase the domains, purchase web hosting, purchase the content, purchase the advertising, etc. Start with that number, then add in your steady average of monthly revenue. If you can demonstrate a positive track record, then it makes sense you could sell for a multiple of monthly revenue. But that is just an estimate. The real test would be to find something similar for sale at flippa.com or a similar marketplace. Find your "comps" and see how your valuation compares.
Other look at income,other factor also need to take into consideration such as age of the site,PR and backlink. If the earning is average $30/month for 24 month then the site can be sell at $30x7 = $210
I stand by my previous post, but I wanted to give a hint about specifics, based on real world experiences. You have left us to fill in the blanks. So my apologies if this not spot on. 1) 30 sites with relevant domains - Let's say each domain cost $9.95 to purchase, that's $9.95 x 30 = $298.50 for the first year. The second year renewals might cost more depending on the domain registrar and the TLD (.com vs .info, etc). Another estimate is the domains are all first year promotional purchases from Godaddy for $0.99 which comes to $0.99 x 30 = $29.70 for the first year. Pretty sure the second year renewals for .info domains at Godaddy are expensive at $12 or $14 each. That puts the renewals between $360 and $420. After I typed this up I saw your signature points to furca.com for domain registrations. Okay, let's use Furca Technologies for .com registrations at $14.95 which comes to $14.95 x 30 = $448.50. Same price for renewals. However, if the domains were .info registrations at $6.95 then that comes to $6.95 x 30 = $208.50. Second year .info renewals are $14.95 so that's another $448.50. Summary: We can estimate your cost for 30 domains between $29.70 and $448.50 for the first year, and between $298.50 and $448.50 for the second year renewals. 2) Each site has 4 unique articles based on the niche of which it is targetting - If each site has 4 unique articles, then the total is 4 x 30 = 120 articles. You did not specify the length so let's guess each article is 500 words. You could've used a software program to "spin" unique articles from original seed text, or you could've outsourced the creation of each article to a writer, or you could've written the articles yourself. Who knows? Let's say you outsourced the writing for $2.50 each, that's $2.50 x 120 = $300. Summary: We can estimate your cost for 120 articles between $0 and $300. 3) All of the sites has the same design w/ integrated wordpress - Wordpress is free, and the theme might've been free, and you could've certainly created all 30 websites on free hosting. But I'm going to guess that you have all of these sites sitting on the same hosting plan in different subdirectories using addon domains. For example, it would be reasonable to say you pay about $118 per year for a moderate web hosting plan like Hostgator. After I typed this up I saw your signature points to furca.com for web hosting. Okay, let's use Furca Technologies for web hosting at $7.95 per month. One year on their shared hosting plan would add up to $95.40. Summary: We can estimate your cost for web hosting between $0 and $118 per year. At this point the subtotal of expenses for 1), 2), and 3) are estimated between $29.70 and $866.50 for the first year. This does not take into account your hourly wages, unless we are to assume you work for free. Also this does not take into account any other expenses such as domain privacy, SSL certificates, web hosting upgrades, bidding on keywords, marketing costs, etc. Your expenses change for the second year, and if you sold your portfolio quickly these would become the expected costs for the new buyer. The second year costs are estimated between $298.50 and $566.50. This estimated subtotal of expenses is the first part of your portfolio valuation. The operational costs have to be factored in with actual income and projected income. 4) Sites are generating $30/month consistently - Income is $30 per month, and that is a subtotal for all sites, so the average earnings per site is about $1. Since you do not say what generates this income, we can guess it is all from Adsense instead of a combination of other creative revenue streams. 5) Sites are generating 200 impressions per day - This is a subtotal for all sites. You do not say if the visitor impressions are unique IP addresses nor do you indicate the source of the traffic. In any case 200 per day is estimated at 6000 per month. Earlier someone mentioned potential earnings between $1 and $5 per CPM. That would yield between $6 and $30 per month. 6) Sites are ranked top of search engines for their keyword - If each site has a good position in search engine results for their keyword, then you should be seeing immediate results from your marketing efforts. There are a lot of free methods available to market each site. If $30 per month is the baseline, let's estimate growth at 5% per month or $1.50. A multiple of earnings $30 x 12 = $360 does not take into account your growth rate. Let's add that in and make some projections. If you were less motivated and just tried to maintain the consistent income level of $30 per month, then you could expect a 1% growth rate would produce $384.28 per year or 2% growth rate at $410.41 per year. On the other hand if the new buyer was highly motivated and approached the portfolio with a solid strategy, then you could expect 6% growth at $536.46 per year or 10% growth rate at $705.68 per year. Break above $1,000.56 per year with a 15% growth rate. Making partnerships and driving fresh, increasing levels of traffic to each site? Expect $1,424.90 per year with a 20% growth rate, and $2,032.79 per year with a 25% growth rate. After saying all of that speculation, let's take some of these numbers and attempt to calculate the net present value. This is not an exact method but I feel it does come close using assumptions, approximations, and rough estimates. Of course all of this is subjective, mainly because we don't know for sure what some of the variables are. But my best guess at this point is the portfolio is worth about $641 without taking into consideration inflation rates and taxes and hourly wages.
Very few people will pay for projected income. Expect 6-12 x past, verifiable 1 month income ie. if your sites paid $30 per month consistently and verifiability then $180 - $360
Aweseomtbn, Thank you for providing this information here. It looks like it might have taken you a lot of time to present this information. It is greatly appreciated and I am surprised at the amount of insight you have given in regards to this. It was very helpful to my in gaining insight. I would like to specify my strategies here for clarification. 1) Domains cost me $8.02/per (100% .com) 2) Hosting costs me $0/month [VPS] (another NON-RELATED site is earning enough to pay for server) 3) Articles cost approx $4.25/per @ 300 word minimum each, copyscape passed and original (outsourced) 4) 200 "impressions" (via adsense) per day. (And growing)? 5) Sites have earned $16.50 in first 13 days of October. Adacprogramming, Interesting. I wasn't aware of this change. I thought it was standard to sell sites/forums @ 36 months revenue. This may make me rethink my marketing strategies.
In the real world they do; online they do 6-12 months and have been for a long time with some exceptions.