Need advice on value of site to make offer on

I've been in contact with the owner of a citysearch-type website that is interested in selling and I'd like to make him a fair offer to buy it.

The site features reviews of local restaurants/bars/entertainment and news about upcoming events. Lots of local user comments and reviews. Site gets 15K montly visitors and 40K pageviews a month of high quality traffic. PR4 and DMOZ and Wikipedia listed. Totally unmonetized with no ads.

What's the best way to place a value on that?

Sorry, I'm keeping the URL to myself.

 

maybe try thinking about how much money you think it could generate for you a month realistically and then times that by 5-10.

 

The 8-12 month system is kind of bogus for sites with legitimate value. Proxies, image hosts, game sites, forums, myspace sites etc sell for 8-12 months revenue.

It sounds that the site is very well established with a good domain. You have to make a determination about how long you think the site can be around for. I always plan out a loan, either in my mind of an actual loan for a site. If the site will be able to pay back a loan equal to the easily foreseable life of the site, including a 20% plowback for reinvestment (to keep it growing), and some money left over for profit then it is a decent deal. I usually plan websites for a 3 year loan, but a site with a great domain could be worth a 5 or 6 year loan. Hope that helps.

 

You want to find out what percentage of those 15k visitors are from what sources.

Quite a while ago when I was very clueless I bought a website that had many visitors going to it. I learnt that 90% of the traffic was from Wikipedia which dropped the link to the site shortly after and the visitors went with it.

Also with something so localised would the revenue potential be that high..

Craig..

 

Hey a little of topic but what would I expect to get for my site Sporting-Info.com New site no traffic. Good income.

 

good answer jellyfish, im still new to the buying of sites. Always find it hard to figure prices on them and judge how long they will be around.

but if its well known in the area and that traffic is from SE then good potential for local buinesses willing to advertise on them.

 

Thanks for the tips, but it doesn't look like it will work out. I offered the guy $10K today and he turned it down.

 

wow huge site