Calculating the value of a site, to buy?

A site has been offered to me for purchase. I have never bought a site before.

The traffic is only about 3000uniques/month but the niche is very similar to my website. They only recently put adsense on it and he said it's getting $30/mnth

I know sites are normally valued at 10-12 times revenue. But Any other tips. He wants $700 or the site.

It appears to be PR4. It has 148 pages indexed in G and a few more in Y
He did mention he has two links from other sites of his pointing to it.

Any thoughts on other things I need to look at.

I wanted to post this in the sites/buy/sell area but I don't have enough posts yet.

Thanks and sorry if these are stupid questions.

 

Could You post the url?

Generally, it's a good idea to take over other sites from our niche - it sounds like quote from Bill Gates, I know ;-) But You should extend Your scope all the time...

 

I'd rather not post the url in case I figure out this is a good buy. Don't want to start a bidding war

 

So I can't help You ;-)

Value of the site depends on many different factors (and potential of niche/market, too), not only uni/m or monthly income from Adds.

 

Calculate the site worth by material wise, earning wise, popularity wise and add the value.

 

Hello,

Well, as you do not want the domain name listed.. can you at least tell us the TLD, targeted audience, SE percentage of incoming traffic, OVT.. well, all this helps knowing more about tha targeted price actually..

Have a nice day.

 

Your post is really analytical and a matter which need good exercise. But untill and unless you give whole detail, the question remains blur.

 

The website only makes $30 permonth and he wants $700, is it a Templates or its patentable website. I think $700 is too much,

 

what are you waiting for just grab it before we start spying

 

Hi,
like the others, I would tell that we do not have enough info to give a precise answer. But according to the info we have, it seems expensive.
Good luck.
David

 

I have my own formula for determining the value of a site:

60% value based on earning. If earning history is solid beyond 12 months. I project up to 12 months NET not gross. If you only have less than 6 months earnings, I don't value this portion at any more than 6 months earnings.

10% domain name - .com, .net, .org or is a ".whattheheck". I usually rate .com highest, then .net/.org, then .info, etc.

10% PR, traffic, links. These things can all change and are out of your control. I've seen sites with great PR, decent links and rankigs disappear from SERPS over night. Sometimes it does not matter how many links a site has, if the search engines want to change something, they change it.

20% site design/code/scripts. Will you have ownership of the scripts? Are they custom? (more valuable since site is less likely to be duplicated). Or are they free open-source? (ie - can I build this same site very easily) Is the site well designed and scalable? A well-built, custom site is something that has actual value. Programming cost went into making it.

So using my formula, I would not put the value of this site at much less than$700. But without knowing more details, I can't really apply my formula fully here. But if I were buying it, I would value the revenue portion of the site at 6 months x $30 = $180. Then add on value from there.
Good luck.

 

The site is a xyzproduct-classifieds.com site.

The part that is confusing me is the amount of traffic he says vs. the number of classifieds.

From what I can tell there are only 20 ads listed on the site.

It appears he is also using it for some sort of a directory site because of the "links" section.

I found a like on his site that points to another classifieds website for another niche product. This must be his forte, classified sites.

He also recently sent an email that he has an offer at $600.

 

If you are in a somewhat small niche market and the seller is willing to sign a non-compete agreement... buy the site.

If it's at all possible, buy up as many competitors as you can. This will let you monopolize on the traffic and if you want, you can merge them all into a giant network... it's a lot of power to have and it's worth the money.

Look at it this way, you will have another niche site to help with promotion/credibility and the worst case scenario your money will be returned in under 2 years. Plus you can always sell the site again.

 

The link is not working, I think his lying when he said he has another offer for $600, it only has 20 ads, and it makes 30permonth and he wants $600, as my3cent has said the website is not worth more than $180. If you really want it, ask him to give it to you for $250 see what he says, if he says no, tell him once you change your mine, email me back, he will email you back in a few days, just watch.

 

Most people will just want to know it's current monthly profit and then multiply that value by 10 - 12. If you have some custom scripts, artwork, layouts, software licensing then you could ask some more.

I posted on my blog about buying a site a while back ... it's really just a padded out version of a post I made in a thread here. If you are interested, http://www.boydcreative.net/1/how-to-buy-a-website/