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Estimated Website Value?

Discussion in 'General Business' started by gallitin, Aug 4, 2011.

  1. #1
    I was wondering what a site would be worth that only has 2 months of revenue proof?  

    June it made $250.
    July it made $1250.
    4 days into August it's made $470.

    It's an adsense safe site, that sells a service.  Do I have enough months proof of revenue to sell?  If so how many months could I sell it for? 
     
    gallitin, Aug 4, 2011 IP
  2. w3bmaster

    w3bmaster Notable Member

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    #2
    It's a bit hard to estimate value
    Usualy is 10-24 x Monthly Earning

    I guess yours something 10 000
    But is very important HOW YOU GET Traffic
     
    w3bmaster, Aug 4, 2011 IP
  3. gallitin

    gallitin Well-Known Member

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    #3
    How many months of income proof do you normally need to sell it?

    Traffic is from search engines, links from other sites and $10/day in adwords.  
     
    gallitin, Aug 4, 2011 IP
  4. mysteryofmarketing

    mysteryofmarketing Peon

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    #4
    There's no real rule. As long as you can find a buyer, you can sell it now if you want. Since it keeps growing, though, I'd keep it around for a bit longer.
     
    mysteryofmarketing, Aug 4, 2011 IP
  5. BRUm

    BRUm Well-Known Member

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    #5
    Traffic is not as important as the money you're generating from the site. More emphasis is placed on this by prospective buyers. I've sold websites before valued between 10-14 months of revenue.

    By the way, very impressive money there. It seems to be increasing very rapidly with each month! Maybe a better idea would be to invest the revenue in expansion and efficiency, allowing even more income per month, then sell once revenue plateaus.
     
    BRUm, Aug 5, 2011 IP
  6. PHPGator

    PHPGator Banned

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    #6
    Man, value must be going up. It was 8 months worth of actual net of the income. Even if you're making $1200 in sales per month, if you are only getting 30% of that you have to base your worth on that number, not on total sales or gross.

    Since your website is improving, you probably can get more than 8-10 months worth assuming your website is not a fad/seasonal product or service.
     
    PHPGator, Aug 5, 2011 IP
  7. jhardy2008

    jhardy2008 Peon

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    #7
    i think you can also focused on traffic of website.
     
    jhardy2008, Aug 7, 2011 IP
  8. fm1234

    fm1234 Peon

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    #8
    As a long-time buyer, my rule of thumb on new sites is to average out the monthly income, then divide it if the site is less than 1 year old, eg. if it's six month old I use the revenue/2 as the guideline. This and similar practices are not unusual for people buying new sites.

    BRUm makes a good point about waiting until the revenue levels out, although I think traffic is a more important consideration (I look at traffic as an indicator of value -- a high traffic/low revenue site obviously is doing at least one thing right, and it's possible I could ramp up the revenue out of the existing traffic. How the site is set up (ie. software and scripts that went into it) and other considerations are all borne in mind by serious buyers; if you sell your site to the "revenue time x" crowd you'll almost always find a buyer -- but almost always get less than the site is worth.


    Frank
     
    fm1234, Aug 10, 2011 IP
  9. joshua_smith

    joshua_smith Peon

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    #9
    I once heard on some business channel on tv that if you want to sell your business. Its worth however much you make in ten years. But since this is a website that probably is different.
     
    joshua_smith, Aug 10, 2011 IP
  10. readezarchive

    readezarchive Active Member

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    #10
    nowadays the rule is generally 10x monthly revenue, but if it's a quality site you can fetch much more
     
    readezarchive, Aug 10, 2011 IP
  11. JerrickYeoh

    JerrickYeoh Active Member

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    #11
    You able to earn that much doesn't mean the buyer will earn as much as you .
    They will sure look on your domain and website content rather than how much u can earn on google adsense.
    because you only sell your website and not your google adsense account.
    Seem it earning and growing, why not you earn more first before you sell.
     
    JerrickYeoh, Aug 10, 2011 IP
  12. rickyfantana

    rickyfantana Peon

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    #12
    Multiply your monthly revenue by 10 to 20, but it's not the case all the time.
     
    rickyfantana, Aug 11, 2011 IP
  13. WisePenguin

    WisePenguin Peon

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    #13
    As much as you can sell it for
     
    WisePenguin, Aug 12, 2011 IP
  14. newlogo

    newlogo Peon

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    #14
    this type of sites not shown you exact value of your site, it just prediction.
     
    newlogo, Aug 12, 2011 IP
  15. Discoverizon

    Discoverizon Peon

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    #15
    Depends on the site demand..Money alone does not get people interested in buying a particular site,for some there are ethical and legal issues to consider. For example,i don't care how much money an adult site makes i would never pay a red cent to buy one.

    The old issue of supply and demand affects your price point..Never forget that..
     
    Discoverizon, Aug 15, 2011 IP
  16. Reedo

    Reedo Peon

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    #16
    1 month, with record of traffic, earnings, ready to roll , approx 5x earnings . Best go to Flippa, look at sold sites, and find a similar site /type traffic/earnings as comparison...Find 3, average the sold price, there you go...! Its what the market will pay, certainly proof of earnings starts a buyer frenzy, always in a sellers best interest...Have fun...!
     
    Reedo, Aug 21, 2011 IP
  17. Golden Touch

    Golden Touch Peon

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    #17
    I've always understood it to be 8X to 12X monthly earnings. If it's suddenly shot up to 10X - 24X, as W3bmaster suggests, then I'm in the wrong business!!!
     
    Golden Touch, Aug 21, 2011 IP
  18. rltenney

    rltenney Peon

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    #18
    I've heard multiple numbers but normally low like 5x or 6x the monthly income. But I agree with others here and would stick with somewhere around 10x only because the revenue this site is generating is very fast and could potentially climb more.
     
    rltenney, Aug 21, 2011 IP
  19. rndm

    rndm Greenhorn

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    #19
    I'd follow the advice above, but be ready with cost information. You need to be able to show how much you need to SPEND to drive the revenue as well.
     
    rndm, Aug 21, 2011 IP