I was talking about business with a friend last day and he ended up introducing me to someone interesting in adquiring a website of mine or to join as a partner. When it came down to price I said I had to think about it and to go back with an answer. My website is a blog about blogging and will be 3yo in September. It's currently PR4, over 25 unique visitors every month, portuguese language with main traffic comming from Brazil, Portugal and USA followed closelly by the UK. This website has given me around $600 in 2008. I have no experience selling websites so I want your advice: If I'm selling the website, what would be a good price? If I'm offering a partnership what would be a good price? The partnership would make him at top 49% owner of the website. How do you come up with a value when you sell your website? Thanks in advanced, Mario Andrade
i can advice you on just sell site , not on partnership. Normally any business sell on 5 years cost. for example if earn $600 per month then multiply it with $600*60= $36,000.
I guess he is earning $600 per year from that website. So the actual cost of that website $600*5=$3000.. Also i am surprised you have 25 unique visitors per month. But you can really make your website a real gold. Just work on it and try to increase traffic at least 100 to 200 UV per day and eventually you will end up selling it at a high cost..
I doubt 25. Maybe 25k? If it's not an ecommerce website, technically you multiply the monthly revenue by 36 (3 years), or the yearly revenue by 3. 600x3=$1,800
How involved is this blog? Is it something they need to post on daily, weekly, monthly, never again? How is the traffic getting to your site? The more 'involved' a site is the less its worth. Perez Hilton would get less for his site then a search engine with the same income. Personally 600/yr on a blog, to me would make the site worth around $400 or so tops.
If I were you I'd avoid a partnership at all costs. Maybe tell him to set up his own site and rent him a few links or write some reviews. Most partnerships end in tears, especially if there is money involved. Value? Standard business rule of thumb is 5 to 10 times yearly turnover. So maybe $3000 to $6000 I'd suggest as an asking price. Start with $6000 and include some free training. I'm sure there will be training involved. For a PR4 site you could make $50 to $100 per month from link rentals in addition to whatever you're doing now to make money. Good luck whatever you decide to do.
1. The price is depend on many factor such as PR,age of domain,link popularity,back link etc. And the base price is 2-3x of monthly earning. 2.Its a good idea though.But first you must hire a independent site evaluator to give an estimate of your site value and then sell a portion of share to your partner. 3.Monthly earning,PR,backlink,link popularity.
no matter what formulas are being thrown around, it all comes down to what someone is willing to pay for the site. i would take the number you have in mind for the site and add 20% to it. then if you overshoot what they are wanting to spend, you have some room to come down and still get what you really want for it. you might be surprised and they accept your initial offer which means you get alot more for it than you planned on it. btw, i would just sell the site and not do a partnership....
Web sites generally go for the 6 to 8 months of their monthly profits. So if you are making $600 it's definitely not going to sell for $36k. Other things factor such domain name, traffic, etc which can increase or decrease the price.
I'm not sure how accurate this is, but dnscoop.com gives you an estimate of how much your site is worth.
I have a friend buying sites at twelve times monthly net. But he is majorly low balling people left and right. I would think it's a combination of things, including value of the site, domain and income.
When it comes to a site you need to work out the value to you. If your site makes $40 a month but you don't mind waiting each month and also you kind of like the site its going to be worth $500 area. But at the same time its only worth what someone else is willing to pay. When people look at a site for business reasons they normally value it at 12months profit. if its a site like a proxy this is generally 3-5 months as the revenue could go over night.
I'd love to be selling sites for those valuations of 36 times the monthly revenue! normally 10-12 times the monthly revenue is accepted but if you have a higher PR or huge amounts of traffic then you can charge a bit more.
Ive always thought that the general rule of thumb for selling websites was around the 6 to 10 months profit mark, providing the website has been around for long enough.