how to calculate BIN price for a site?

i am thinking about putting up my flagship site for sale in order to downpayment for some real estate in texas.

i have a questin. what is the traditional way of calculating a BIN price for a website? my site makes 4,xxx/mo consistently, so around what price should i sell it at?

 

How many months do you have recorded, what kind of maintenance is required, and what are the main sources of traffic?

 

I would think 6 months-1yr worth of revenue. but it all depends...

24 - 48 k would be my guess

 

6 months recorded (used to make only $1000/mo 6 months ago)

site requires about 15 min of maintenence a week (in addition to maintaining SERP placements)

main source of traffic is 90% google

 

Standard is around 12 months revenue. You would do better just keeping it if it makes $4k a month with 15 minutes work a week.

 

for this site you might get around 12 months profit.. why not take out a loan for the property and pay it with your profits.

If you have a years worth of data you could sell it for more like 24 months profit. Especially when you require a very limited amount of upkeep

 

What do you mean by that ?

 

He means the poster should go to a bank, take out a loan and they use the profits from the site to pay off the loan.

 

That would be a much smarter idea, using the profits from the site to pay for the loan. The site is a continuous source of income and you stated that it has consistent revenue therfore you can rely on the site as a stable source of income to pay off your loan.

Good thinking klown;1872058

 

I never understand people who sell their high earning sites for less than 24 months profit.

The above idea is sure much better... take a loan and pay it off with your monthly income from your site.

 

Whatever you do, take your time. I have seen sites go for a song and the sellers regret their quick sale later on. Not that I wouldn't mind snagging a bargain myself, but you don't want to be left with a shoulda/woulda/coulda feeling later on. Do you know what I mean?

 

If the site is unique with lots of contnet and nice domain name it might be priced higher (even much higher) then just 12m revenue. If you wish PM me the the URL and I will tell you what I think the right price should be.

 

One other point, if your site is dominant for your particular keywords, then you are adding value to the worth of your site. I operate a site that has been appraised at about 36x AdSense earnings. Fortunately, I also pull in banner ad, text link ad, and resume posting fees too.

 

In the end through - bulltrader - has said that the site was only making $1000 a month just 6 months ago. When did the site start making $4000 a month? 3 months ago? If so then site income cant be called stable. Sites that get alot on SE traffic can be knocked down quickly and then take a large amount of time to maintain as the keywords become more competitive.

For me on site value, last 9 months profit would be the go as standard if the site is not something special, just making some ok income.

Key Factors of site worth would include: look and feel, programing (code), domain, traffic, SERP, PageRank, Whether DMOZ listed, Real Site Link Popularity, Competition in the market, Potential Competition.

I have a one site of mine that takes no work and has been making around $2k-$3k a month. For me I am more than happy to hang onto it and keep it in the background as extra savings. As people are saying if you have a site earning and its nothing to maintain - you might as well keep it. If it keeps making $ for next 2 years at similar levels to now - then could sell it for sure around 24 months aka $100k - nice - ontop of the money you have already made. You have to love the internet!!

 

If it has been consistently getting this amount monthly, you should have no problem getting ten to twelve times monthly revenue for the site.

 

For every ~1k a month depending on terms you're looking at ~175 mortgage payment on a 30 year fixed.

The start of the thread specified texas.
If the land in question isn't for a primary residense then it would be harder to find 30 year loans... but not impossible.
This doesn't take into account property taxes which are totally dependant upon where the land is. They could range to next to nothing to a substantial chunk. Where I live we're paying ~4k a year on an appraised value of $160k. So that would have to be taken into account.

All this points me to saying to not sell the site and use the monthly income from it to pay a loan...

however...

If something were to happen where that income all of a sudden dried up, then the poster would be in a serious world of hurt. Taking out a 30 year loan against a site which has only been profitable for a few months is quite a risk...

which would lead me to think about selling the site.

So combining those two things, I wouldn't sell the site but instead place all profits from it into 18 month revolving CDs until such point as those CDs had a value = ~50% of total purchase price (for $175k with a monthly rollover of $4k you're looking at somewhere along the lines of 18-20 months) at which time I'd make the equity purchase. Doing so would give you a big cushion were the bottom to fall out of the site and also ups the total $ ammount that can be taken out for a loan. And then at that point either sell the site or use it to continue payments until such time as it dried up.

 

Normally bin calculate algoritm = Monthly revenue *10 but if you have high quality sites bin = monthly revenue *(15 - 36) .

 

Agree

Lets say you own this forum and you want to sell it. Should you sell it by Revenue * 10 or 12? or more? do not forget the potential of the site. If you know it is easy to maintain, it is already positioned, and it has some work done in the past it is worth more. It is more tha the revenue.

Look at youtube.com (yes it is an extremist example but...) did they sell it by a *10/*12 figure... no way! they sold it by potential, name, popularity, etc, etc, etc.

 

Here is a great suggestion from Jaree

Do not post the BIN first instead ask them to send you reasonable offers and give them rough price range for offers like for say $15000-$18000 then see what kind of offers you get post the offers in the thread and see if you get any more. You will get a good idea of what people are willing to pay for that and you can post that as BIN

 

You can trade my your site for my house?