I have been in business on the internet since 2002. I have only recently joined this forum. I run a couple of online businesses in the meditation niche. The first makes around $6,000 per month and the second $1,000 per month. I am looking at the possibility of selling one or both of them but have no idea how to go about it or what their value would be. I have seen a references on here to flippa.com; is that the best/only place to try to sell an online business or are their other/better ways.
There´s a lot of factors that you have to take in consideration when valuating a website with income. First you can value it as normal business, calculating the yearly profit with a multiple (from 1 to 10) depending on what kind of business there is, margins, assets, futuregrowth and competition in your market. A quick model is to take the profit/year times 2-3, when it comes to webbusiness. You also have to valuate the domain (generic?), backlinks and the organic results from search engines (or do you pay for the visitors?) How much work does take to run the business? Selling physical goods takes normally more time due to the logistics. /Benny
It also depends on how much the buyer is willing to pay for it, of course. As you see, it´s complicated and you can´t say straight what the value would be. Some part of the valuation requires some maths, for other parts you need to use estmation and common sense.
2-3x yearly profit - are you mad mate? Show me someone who is willing to by a website for 36x monthly profit and I'll make you a millionaire! The market average, when it comes to websites, is 10x monthly profit. If you have a real business (company, employees, etc.) then you can start thinking about larger numbers.