Ok, guys I have a question as I've never dealt with buying/selling websites before. Suppose a website is earning $100 of PROFIT per day. Just assume the profits have been proven, legit, and accurate. Also, these earnings are passive (minimal maintenance work required). And by the looks of it, this website won't be slowing down any time soon. What's a fair sale price for this website? Any feedback would be appreciated. Thanks.
Well, with proof and good background, legitimate business and all, good traffic sources and some decent search engine placements I would say between 6-10 months earnings. But also some kind of performance pay, say 60% paid now, and the rest being paid in maybe two 20% chunks or one 30% and one 10% chunk, through time as the website proves itself. Use Escrow .com for such high value transactions, and lock in the payment plan and everything.
How did you come up with that very genious valuation? If he makes $100 per day n PROFIT, you only value the site at ten days profit? Come on, be real. That is WAY to low. But to each their own.
I agree with the 6-10x monthly profit that is the average for sites. Keep in mind what extremepullups posted.
the reasonable price of that $100 earning daily site is around $6000 that's what ppl can afford if the site really does.