I told my husband I could sell my site for 6-figures- was I right?

This is mostly a curiousity thread... for now, anyway.

My DH is between jobs now, and I'm pulling in quite a bit of "pocket change" but not enough to support the family from my online marketing businesses.

I told my DH that if we're desperate I could sell my www.RaisingSmallSouls.com site for 6 figures, however I'd prefer to keep it and keep developing it.

Was I exagerating? How much do you think it's worth?

It has a p4 4 although it sometimes looks like 0 the past few google dancing days.

51K uniques in June. Each visitor viewed average of 5.3 pages of site. 99% of site is unique content (I have one ezine article up.) I have over 9K double-opt-in-subs. Earning significant XXX monthly in Adsense. Lots of potential to promote related affiliate programs.

How much would you pay for the site?

I'm not truly thinking of selling it, however if we get seriously financially challenged, ya never know!

 

If i am not mistaken, the generally accepted value of a website is the current monthly revenue multiplied by ten. So you do the math and tell us how much it is worth. I hope that helps.

 

it will be around 8-12 month of revenue, at most 24..
are all traffic from SE?

 

Using this formula, the answer would be no. You would have to be making XXXXX in AdSense revenue

 

This ain't the 90's, dude

No one pays 24 months revenue for a site any more unless it is very well established and gets hundreds of thousands of visitors.

10-12 months would be the standard

 

The 24 month formula would only be viable in a situation where monthly revenue has long been stabilized and the revenue would be at worst foreseeably stable over the next two years. There are not a lot of websites for sale that actually see that situation. An exit plan for maximum value would involve a great deal of planning on the site owner's part, and a long sales cycle.

There are just two many ways to falsify revenue, visitor figures, and other statistics. For any amount over a couple of grand, I would expect most any site buyer to perform a significant amount of due diligence before handing over that kind of money, and certainly not without a great deal of negotiation. It happens now and then with special sites, but those situations are definitely not the norm. There are also a lot of other factors involved - how much work is involved in maintenance, the continuation of revenue generating relationships and the reliability of those relationships, user community commitment through a sale, the potential changing of the competitive landscape, whether the site seller would be a potential competitor, physical and intellectual assets, etc.

If this is something you have put a lot of work into, you are the most valuable asset and are probably not for sale. Bringing up the question now, you should start thinking about your exit strategy down the road - how can you cycle yourself out of the picture reasonably, how can you prove your site's long term viability, how can you minimize management tasks, and how can you maximize revenue while reducing expenses. In short, how can you ensure that your site will be most valuable and most attractive to a potential buyer. Selling a site that makes money and involves very little managment is much easier because your pool of potential buyers is larger.

Also, I would give the advice that when selling your site, it should be well beyond reliance on search engine marketing. If the user base and revenue stream is not dependant on factors outside your control, then it becomes a much more viable purchase for more conservative investors - again increasing the pool of potential buyers and driving the price up to it's maximum value.

Of course, you could ignore my advice and go the PT Barnum route, but that's a crapshoot at best - and means that you will not be able to predict when your site will sell nor how much it will sell for - making it much more difficult to plan an exit and subjecting you to a strong possibility that you will be on the losing end of the deal.

Remember, if you can't spot the sucker within 20 seconds of sitting down at the poker table - you are the sucker. Know when to hold 'em, know when to fold 'em. Know when to walk away and know when to run.

 

Easy there Mikey McDermott

 

A site is worth what a buyer will pay for it.

If there is a buyer out there with 6 figures to spend that happens to be interested in the subject matter and you can convince him or her that they'll likely be able to achieve a good ROI then they'll buy it for 6 figures to keep someone else from getting it.

It's a buyers market. Normal 10 to 12 months revenue standards sound great but if there is no one willing to pay that amount then it wont sell for that amount.

 

From my experience, if you auction your website and market it well, it should go for $12-$15k.

Like you said there definitely is potential.. so you might get 6 figure if you try that potential out and prove it to the potential buyer, otherwise, 6 figure althogh possible is highly unlikely sale amount.

 

Well, i bet it will go for up to 50K if you run some 5K auction-inig campaigns for it along with a nice PR.. But following formulas, its nothing more than 12-15K.. all this is just IMHO

 

10 - 12 months revenue is what it should be selling for, but the reality is you don`t want to sell it.
Different scenario if you had to sell it. If you had to sell it because needed the money and buyers sense that is real hard to get good money for things like this. I have heard that they sold a site that brought in some money ( low $ xxx) for one month revenue ( I would never sell that for ) , but the bottom line is that your site is worth exactly as much as someone willing to pay for it.


stojan

 

hmmm...how's like to have a site that's wprth so much?! don't know about you guys, but here the sums that you talk about are a fortune

 

definitely NOT 6 figures. You will be lucky to get 5 figures. To be honest, you might not even get $5,000. It all depends on your montly XXX. Times that by 12 and you get your price. Your site can easily be duplicated with some original content.

 

6 figures if you mean 1000.00 MAYBE

 

The 9K subscriber base is worth it's weight in gold alone, so the 12-month revenue ballpark websites usually go for logic doesnt apply here IMHO. That's a decent traffic level, if revenue has been sustained for a long period 18-24 months wouldnt be a far stretch.

 

Not six figures gold though. I honestly don't even think 5 figures. Don't get me wrong it is a really nice site and having 55K visitors a month doesn't hurt it but I would be surprised if it broke the 10K mark.

I think an accurate value would be more around the 4k-5k but that would depend on a few factors which weren't brought up in the initial post.

 

Nah, I'm pretty sure she could get 15K - 20K for it. Of course, a lot depends on that "XXX monthly in Adsense" too, if XXX is closer to $100 you may be right, if it's closer to $999 then she'd probably do better than the $20K.

 

I concede if she meant $999 it would change the value...Altough usually if they are in the upper XXX they say its around XXXX lol

 

Nup.

I was just trying to get the point across that you cant view this is a normal website sale. This site is obviously worth alot more to someone in the know with email marketing.

 

It definately adds value, no doubt about that. I do think though that you could buy the rights to a similar themed optin subscriber group for a couple of K

So I was thinking:
Subscriber Base: $2k
Revenue (I never value AdSense over 10-12 months): $2k
PR4 Site with Original Content: Add another K

So around 5K

If Peter was right and she meant high XXX then that would mean AdSense would actually add 8-9K

So then around 12K