I'm just curious... I have a site that's 8 months old, which has made an average of $600 per month (about $750 the past 5 months). The site averages about 1500 uniques a day and has a PR4. It's a website for iPod Touches (playtouchgames.com if you need to know). If I were to sell it today, how much would it be worth? Note: I posted it here rather than in the Domain Appraisals area because this isn't really an appraisal for a domain...I apologize if I'm wrong.
Generally all revenue, but people may only be concerned about revenue streams they can easily take over.
Yeah, as a rule of thumb, you should multiply your monthly income by 10-12 months - so the new owner should make back his investments in a year. However, don't be fooled: sometimes it might be worth less, sometimes more. Yours is a good niche with no HUGE competition, so you should get quite a bit of money from it.
Not even close. There are many additional factors to consider when buying a site, and it's worth. There is NO RULE of any 8-10-12 months of revenue on any site ever. Only noobs and people who do not know how to properly evaluate internet real estate say this, and claim there is any 'rule'. No offense. Simply stating the facts. Shoemoney wrote on this in detail. Check his blog. I've discussed it at length many times. Do a search on DP.
Very good Barefootsies. In the real business world outside the noob amateur world they buy good sites for 6 to 10 YEARS of earnings.
Anywhere from $5,000-$9,000 would be my estimates. I sold a site that racked in around $2k in 3 months for $7,000.00. If you can find a good reliable buyer then sell it, otherwise hold onto the site until you find one.
There are many factors involved in deciding what a site is worth. There is no rule of thumb for every site. With a site like yours, things change so quickly in new technology, it may have short lived earnings which will be a key factor when selling it. Bottom line is, the site is only worth what a buyer will pay. I can tell you $10,000 but unless you find someone willing to pay that, it means nothing. If you are serious about selling, put it on the market and see what you get offered for it than decide if it is worth selling.
Another data point from my experience as a CPA working with small businesses... When you look at the data for some businesses -- for example. BizComps database of 7000 small business sales -- on average a small business sells for roughly 2.5 times cash profits... This is the median, so half of businesses sell for more than this. But this is the median, so half of businesses sell for less than this. Three other notes: (1) The valuation multiples vary by type of business. I don't think there's really enough data in the commercially available databases to definitely say what a small ecommerce business is worth... it's not like selling drycleaning businesses.... or a bookkeeping firm... etc. where there are dozens and dozens of comparables. (2) A common mistake that business owners and prospective owners make is thinking that large company valuation multiples (like those that apply to businesses that are or can become billion dollar businesses) also apply to small businesses. The data say you have to get pretty big in general before your business is valued using anything like the rules that apply to, e.g., a recently public company. Like you might not get a Microsoft-type valuation even at $100M in revenue. (3) For strategic reasons, buyers sometimes pay amounts not based on historical earnings but on the place they're going to move a business to... E.g., remember franchise gator web site? I read someplace (probably Wall Street Journal) that when their revenue was $8M, somebody bought them for, like, $22M. Or something that like. Obviously, that probably wasn't a valuation based on a standard earnings multiple.