How do you value a site like this?

Discussion in 'General Chat' started by advancedfuture, Apr 6, 2008.

  1. #1
    I am trying determine the value of a website that is 2yrs old that generates 120k in annual revenue. The site does not use affiliate ads or contextual advertising but generates leads for companies and the site gets a 10% cut of the profits generated by the leads. It is fully automated and requires no daily maintenance. What would the value on such a website be... how would I value it?
     
    advancedfuture, Apr 6, 2008 IP
  2. DaveyBoy

    DaveyBoy Peon

    Messages:
    2,076
    Likes Received:
    64
    Best Answers:
    0
    Trophy Points:
    0
    #2
    I think you value it at 18 months' turnover. So 180k or something.

    Not sure though!
     
    DaveyBoy, Apr 6, 2008 IP
  3. aGig

    aGig Well-Known Member

    Messages:
    428
    Likes Received:
    5
    Best Answers:
    1
    Trophy Points:
    118
    #3
    In general sites values are 10-12 months income, but this can change based on many factors... Domain, Backlinks and so on.

    It all comes down to the buyer, some people see value differently. One guy might be willing to pay 50k more then the next guy.
     
    aGig, Apr 6, 2008 IP
  4. Num Lock

    Num Lock Active Member

    Messages:
    1,802
    Likes Received:
    13
    Best Answers:
    0
    Trophy Points:
    80
    #4
    It all depends on what the site is, good niche earning alot = higher price. Also if its a big well coded script, design etc.
     
    Num Lock, Apr 6, 2008 IP
  5. DanLar75

    DanLar75 Peon

    Messages:
    824
    Likes Received:
    4
    Best Answers:
    0
    Trophy Points:
    0
    #5
    In this case I would value the site as follows:

    12 x monthly revenue as standard
    - 20% if revenue does not have a 3 months consistent history
    + 10-30% depending on 'trend' of revenue
    - 10% if user has iTrader less than 10
    +- 10% depending on my beliefs regarding the niche

    Should give you an idea!
     
    DanLar75, Apr 6, 2008 IP
  6. RandomH3r0

    RandomH3r0 Peon

    Messages:
    265
    Likes Received:
    4
    Best Answers:
    0
    Trophy Points:
    0
    #6
    I would say over 12months revenue for sure, for a site like that. Not really sure any more specifically but maybe 12-18months+ revenue
     
    RandomH3r0, Apr 6, 2008 IP