Please help me evaluate the website, which makes 2K monthly?

I am very interested to sell my website, which makes 2K USD per month thru GA and Vibrantmedia context advertising.
How can I evaluate its price?
Your advices?
Is there any formula, let's say - site income * 12(24,36) months?

 

Thank you for your reply, Aaron.
Site is in adsense for 3rd year, and it makes 2K for 1 year
It's up from 2001
Automotive, no seasons )

 

It makes 2K per year or per Month?

 

monthly, as stated in thread headline

 

I think you mean profit.

The stability/history and source of your traffic would be factors, if you can show a stable traffic source for a long period it increases value.

 

$24,000+ IMO. Profits can only rise, right?

 

No, as Aaron rightly stated it depends how long the site has been earning well, the stability of the income and the traffic. How much of the traffic is reliant on free search rankings - they could change overnight, how much of the traffic is bookmarks etc.

Broadly speaking $20k but if there were other factors that added security to a buyer it may be more, further if its traffic/earnings do not have enough history/reliability it could well be less.

 

Exactly, it depends on how much traffic history and profit history you can proof... and on the potential buyers bids... good luck.

My price range would read $15k to $20k

 

Any of the monthly $2000 earned through paid advertising by yourself, like adwords? If so, how much?

 

10 x is a decent starting point but there are a lot of other factors. I have seen domain names go for 75k and sites with no income at all go for over 400k. I think that site whatismyip.com sold for over 400k on Ebay last year and I don't believe that it had any revenue at all - but it had huge traffic.

If I saw a fantastic site in my niche that had no revenue at all, the quality content might be worth 10k or more to me.

 

No, absolutely no paid advertising.

Mainly Google traffic, then Yahoo! and MSN.
Website is included in Yahoo! Directory

As for traffic history - it is available thru independent counters with data from 2001.

As for profit history - I can show google adsense table with all income from the moment of joining adsense. As for vibrantmedia - the same.

Ok, thank you very much, you were very helpful.

 

Some major issues seem to be missing from most peoples' evaluation. Stability of income is important, yes. But two points this thread really needs.

1. When you're talking multiple of income it's net income after all expenses. Since you don't advertise there are costs like hosting, software licences etc. that need to come out of the profit before you get to net income.

2. Salary: Salary needs to come out too. You don't pay yourself a salary? It doesn't matter. If you spend your own time working on the site you have to deduct a fair salary. more

 

1. Net income IS profit and that was mentioned here already.

2. So if a site is making 70k per year and your "salary" is 60k per year then the "net income" the sale is based on will be 10K? That is absurd. A salary is exactly what people are buying here. You know - the ability to make money?

 

Salary and "ability to make money" are two different things. Salary is compensation for time spent. Profit is compensation for money invested/risk taken. Maybe you should speak to an accountant or business broker one day to see how it really works.

If people are "investing money" to buy salaries that's their own stupidity.

Two sites come up for sale
Site 1: Makes $10K, runs itself, BIN $10K
Site 2: Makes $11K, requires your full time attention (minimum 50-60 hours per week), BIN $10K

You are saying that Site 2 is the better deal!

 

Time spent is obviously a factor in the value of a site. However, I could pay myself a "salary" of 60k per year for 5 hours of work per month or 200 - it's completely arbitrary.

Investing money in a salary is stupidity? Why do you think people buy businesses?

 

I already know. I've bought and sold more than my fair share. After working for years as an accountant I specialised in M&A work and dabbled in everything from MBOs to IPOs to asset stripping.

You account for a reasonable salary on which you are taxed in a certain way. The remainder is profit which is usually taxed less. You really should speak to a good accountant ... or at least read that page I linked you to.

Yes. Especially when you can get a salaried job without risking any of your own money. Yes, yes, yes, and maybe one day you'll thank me for teaching you a valuable money lesson.