Buying Sites earning at least $1,000, budget $100,000

Hi, I am interested in buying any site that has been making at least $1,000 a month CONSISTENTLY over the last six months. Everything about the site and the way it earns money needs to be FULLY LEGAL with no potential problems whatsoever. For such a website, I am willing to pay CASH at 10 times monthly earnings, budget is limited to $100,000.

I look forward to hearning from you!

 

what about iphone website?

 

If it is fully legal and does not infringe any trademarks, eg. does not have the word iphone in domain name, sure!

 

I have a pretty new site that has produced $1K in just 20 days. I know it is a pretty new site but has huge potential. Please let me know if you would be interested in talking further.

tiltedsports.com

 

Sure, please send me url, traffic stats and income proof by PM, thanks.

 

I'm a little confused why would you purchase a site for 10 times its revenue?

 

10 times monthly earnings is a common formula for buying internet properties.

 

Calculate by Revenues
One way to get an idea of current valuations of web properties is to use a multiple of Trailing Twelve Month (TTM) revenues that the site has generated. Our analysis indicates that mainstream web properties are selling at the following median multiples:

eCommerce sites: 3 x TTM
Content sites: 6 x TTM

From: http://www.ventureplan.com/web.valuations.html

I just think its a massive over valuation which makes no sense.

 

I don't know what the author of the website you quoted had in mind but normally "trailing twelve month revenues" means actual revenues for the entire 12 months, not an average monthly revenue. Therefore "6 X TTM" would mean "6 x 12" months revenues or 72x average monthly revenue. By that standard, the OP's offer of 10x average monthly revenue is cheap, rather than "a massive over valuation."

But the website that you cited doesn't specify the size of the "sample of 100's of web transactions" on which their valuation figures were based. In fact, the website noted:

There are many reasons besides "significant market share" why a larger site sells for a higher multiple of revenues than a smaller site. If you have 150 sites that generate an average of $20 in revenues a month, keeping them running and working on SEO is a lot harder than having three sites that generates $1,000 per month or, even better, a single site that generates $3,000.

While there are certainly shortcomings with any "rule of thumb" when it comes to valuation, I think 10x monthly revenues is a fairly cheap price for a website consistently earning at least $1,000 a month, which are the sites the OP is looking for. On the other hand, I think 10x monthly would be pretty generous for a typical site earning only $20 a month.

 

That does not make any sense at all. 6 x TTM for a site earning $1000 per month would be $6000*12 (if the average earned was $1000 per month) which is $72,000 yet the OP would pay $100,000 an additional $28,000 above industry standard.

I see your point here, but the OP has not specified anything other than revenue and thats it. Therefore the OP is willing to pay $100,000 for a site earning $1000 per month errespect of size or traffic. The only stipulation is the legalities.

And it which marketplace are you aware of where people are simply generous when it comes to large industry transactions. To me it does not make sense and simply raises a red flag.

 

chtdatweb: Maybe I am reading the OP wrong, but I think he is not saying that he would pay $100,000 for a website earning $1,000 a month. I think he is saying he will pay $10,000. He used the phrase "10 times monthly earnings" not "10 times trailing twelve months earnings."

If he is paying $100,000 or a website earning $1,000 a month, I agree with you that does make sense unless there are a lot of synergies that would lead to above average growth. I just don't read the post that way.

 

Business Attorney is right: I meant I would pay $10,000 for a website that is earning $1,000 per month. I do have a budget of $100,000 though, so I could buy ten such sites. By the way, I'd also consider buying several websites that earn $1,000 in conjunction. The reasoning of not paying more than 10 times monthly earnings for me is that rankings cannot be guaranteed. Sometimes they plummet drastically which means you will not get your money back at all. Of course, if a new owner can keep rankings for years, 10 times monthly earnings is rather cheap. On the other hand, if you buy a site that gets deindexed in Google after 2 months (which has happened to me before), paying 10 times monthly earnings is a loser. To me, paying 10 times monthly earnings accounts for the risk I take when buying sites. However, everybody may feel differently about this of course.