Hi, I am looking at purchaing a site taht has been online for around 5 months, Without saying to much about it, it was averaginga round 3,000 unique hits per day, apprently the pages have been indexed and now get over 10,000 perday! It makes around $700 per month , proof is provided via stats and proof of earnings too, the earnings come from sponsered links, bascially its a search earch site that focus on a certain topic, it has a page ranking of 4. Your opinons would be much appreciated Thank You Lee
Valuation is highly subjective. Without a strategic reason to buy the site or an obvious way to add value and boost income, it would be purely financial play and I'd want a margin of safety. I'd pay $2100.
I usually see people saying a site's value can range from 10-24 months' revenue. So by that, anywhere from $7,000-16,800 with proof of earnings and a realistic expectation the earnings would continue. But really, in the end, it's worth whatever people will pay for it.
thanks guys, i think its important to make sure the earnings are there long term i suppose cheers Lee
The source of the revenue is important. If its link sales, then you might or might not be able to generate the kind of revenue was there. If its from Adsense, you should look into the history and see the behavior of income.
Great suggestions. Do you have passions on what you are ready to buy? Do you have a plan to mantain & control the monthly profits? Without strong directions, you can lose 50% of the business in few months. Think to it, you must have a good plan to follow...
If the earnings are likely remain or even increase, you can expect to pay around 10-12 months' earnings. Having said the, valuation is always subjective.
thanks for all comments, revenue is coming from sponsed links on the site, averaging around 0.05 per click I believe, my only concern is if it will be short lived earnings? It apprently has over 5,000 backlinks too? Any more comments appreciated Lee