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How much is a site that makes $1500/month worth?

Discussion in 'Sites' started by emil2k, Dec 3, 2005.

  1. #1
    How much is a site that makes $1500/month, and steadily rising, worth?

    What factors come into the equation? SEs position? PR?

    Looking for appraisal NOT SALE
     
    emil2k, Dec 3, 2005 IP
  2. LouisR

    LouisR Peon

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    #2
    It all really depends on how long it's been around and how long will it last. Also, can a similar site be put up within a few weeks and catch up?

    Also, there was a similiar discussion here. $1300/mo worth
     
    LouisR, Dec 3, 2005 IP
  3. petertdavis

    petertdavis Notable Member

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    #3
    How much it makes is only one factor a buyer needs to consider. For example, you may be spending $2000 a month on the site, so then the revenue would be a moot point, right? It's kinda like selling a car and just saying it's red how much would you pay for a red car?
     
    petertdavis, Dec 3, 2005 IP
  4. torunforever

    torunforever Peon

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    #4
    Both your "moot point" and your analogy are way off base.

    moot point - So you're telling me it's a moot point if a billion dollar company had a quarter where their profits were zero, and I could go ahead and offer them $100 for their company?

    red car - What? Revenue is a much more important factor than the color of a car. At least keep the analogy relevant by saying something like it's the amount of revenue a landlord takes from a tenant, and that you should consider other factors like how dependable the tenant is.
     
    torunforever, Dec 3, 2005 IP
  5. emil2k

    emil2k Well-Known Member

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    #5
    Good Point...

    I dont spend anything on the site it is mostly self maintaing (getting orders wise) a lot of targeted traffic from SEs...and monthly profit is extremely stable and rising cause it is recurring
     
    emil2k, Dec 3, 2005 IP
  6. emil2k

    emil2k Well-Known Member

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    #6
    But that site makes money from AdSense which is mostly unstable source of income...and he had only one month of income...mine is about 3 (Im not really looking to sell rght now so when im ready to sell the age and profit of the site will probably go up, so a way to determine a price would be appreciated considering these two variables)
    My sites profit is much more stable...


    Is it true that it would be X12

    which would mean 1500x12 = 18,000

    PS Guys if you know which site Im talking about please dont post it, OK I dont want this thread coming up in SEs when people search for my site Thanks Guys :)
     
    emil2k, Dec 3, 2005 IP
  7. lorien1973

    lorien1973 Notable Member

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    #7
    its really 3 years of earnings. If your site earns 1500 per month and your profit it 1000, then its 1000*12*3 = 36000 MOL. Its an approximation though, since you have a buyer and a seller, there is always negotiations to be had.
     
    lorien1973, Dec 3, 2005 IP
  8. joch21

    joch21 Well-Known Member

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    #8
    iVe heard of 3 year earning in business sales but not so much in website sales. 10-12 months seems to be the norm AFAIK
     
    joch21, Dec 3, 2005 IP
  9. lorien1973

    lorien1973 Notable Member

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    #9
    thats just because you have lots of novices buying and selling sites. People who sell a site for 10-12 months of earnings are on the losing end of a deal.
     
    lorien1973, Dec 3, 2005 IP
  10. emil2k

    emil2k Well-Known Member

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    #10
    so lorien would you say 10K minimum? Cause I just want to know if needed could i get 10K cause Im might have to sell for college and etc.
     
    emil2k, Dec 3, 2005 IP
  11. lorien1973

    lorien1973 Notable Member

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    #11
    Depends on your profits. If you make 1500/month and take home 1000/month after expenses (advertising, hosting, etc). Yeah, I wouldn't sell for less than 10000. Id ask for at least 25k, personally.
     
    lorien1973, Dec 3, 2005 IP
  12. emil2k

    emil2k Well-Known Member

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    #12
    cool, nice to know I think i will use the two year rule...

    Also lorien where would you recommend going to find buyers except for forums is there some where else...
     
    emil2k, Dec 3, 2005 IP
  13. RectangleMan

    RectangleMan Notable Member

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    #13

    Since your such a pro and pay 36x revenue should I contact you whenever I have a site for sale? I am a real novice and sell for 12x all the time. I am glad to know that pros like you exist that willing to pay 36x.






    novice...indeed! It's an open market...that's what sets prices. If a site is being sold and no one wants to pay more than 12x revenue then that's what it's currently worth.
     
    RectangleMan, Dec 3, 2005 IP
  14. lorien1973

    lorien1973 Notable Member

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    #14
    Sarcasm noted ;) If you are willing to sell a site for 10-12x income, by all means, do so. If I were to sell a site making $1500 per month, I'd hold onto it until I found a buyer willing to pay a reasonable amount. But that's me ;)
     
    lorien1973, Dec 3, 2005 IP
  15. torunforever

    torunforever Peon

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    #15
    I've heard sedo.com mentioned around here. At the site it says "Sedo is the leading marketplace for buying and selling domain names and websites"
     
    torunforever, Dec 3, 2005 IP
  16. TheHoff

    TheHoff Peon

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    #16
    I've never gotten serious offers from Sedo myself. Best results have been from Sitepoint.com, DNForum.com, and here.
     
    TheHoff, Dec 3, 2005 IP
  17. emil2k

    emil2k Well-Known Member

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    #17
    DNForums seems good but it costs money to join...what is it like $300
     
    emil2k, Dec 3, 2005 IP
  18. petertdavis

    petertdavis Notable Member

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    #18
    Yep, but I'd add namepros to that list too. Not as active as the other three, but worth the trip just the same.
     
    petertdavis, Dec 3, 2005 IP
  19. emil2k

    emil2k Well-Known Member

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    #19
    So let me ask you guys is it normal for webmasters to sell their sites off...

    Do you build your site hoping that you'll sell it off one day?

    I dont know it seems weird to me? I probably wont sell unless I see an offer I can't resist...
     
    emil2k, Dec 3, 2005 IP
  20. lorien1973

    lorien1973 Notable Member

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    #20
    My goal was to do that. I'd love to get into the business of making sites, getting them profitable and selling them off again. But, instead, I've started accumulating sites again, and I have a few too many now. :(
     
    lorien1973, Dec 3, 2005 IP