Right price for a website?

Discussion in 'General Business' started by grothbe, Nov 15, 2009.

  1. #1
    Is there a general rule to calculate a good price when buying a website? How long time should it take for the website to pay itself back? (For example if a site generates netto 10$ per month, how much "should" it cost?) Of course, the price will depend on many things, but is there a general method of pricesetting?
     
    grothbe, Nov 15, 2009 IP
  2. zgfq008

    zgfq008 Peon

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    #2
    I would never pay more than 10 times monthly earnings.
     
    zgfq008, Nov 15, 2009 IP
  3. zenoTom

    zenoTom Peon

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    #3
    roughly 8 times the monthly revenue from the website..
     
    zenoTom, Nov 26, 2009 IP
  4. TedMaster

    TedMaster Member

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    #4
    Tbh i would say more like 6 times month revenue. However, it depends very much on how long back the seller can record these earnings and quality of site. If your looking to buy, be very careful to check the website thoroughly with all available tools. You'll definitately want to know where the traffic is coming from.
     
    TedMaster, Nov 26, 2009 IP
  5. hughmandy

    hughmandy Peon

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    #5
    on average it should be 6 times. But that depends on how long the site is established. The longer its established, the higher the multiply
     
    hughmandy, Nov 26, 2009 IP
  6. hostimizer

    hostimizer Well-Known Member

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    #6
    its depends on site rank and status and earning also
     
    hostimizer, Nov 26, 2009 IP
  7. InBiz

    InBiz Peon

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    #7
    I am looking to buy a website myself that generates revenue via adsense. What multiplier of monthly revenue would be a good number?
     
    InBiz, Nov 27, 2009 IP
  8. 24788

    24788 Peon

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    #8
    If you are buying a website. Make sure the website hasn't been banned by adsense already. People try to off load websites because they get banned.
     
    24788, Nov 27, 2009 IP
  9. JT706

    JT706 Peon

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    #9
    You should be able to get at least 10X the monthly earnings.
     
    JT706, Nov 27, 2009 IP
  10. BrassDash

    BrassDash Peon

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    #10
    I normally pay 10-12 months revenue. Total revenue, not just profit.
     
    BrassDash, Nov 27, 2009 IP
  11. mentos

    mentos Prominent Member

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    #11
    Is there a general rule to calculate a good price when buying a website?
    The most common rule is the site average monthly earning.

    How long time should it take for the website to pay itself back?
    Normally seller will sell at 6x of monthly earning,so you roughly need 6 month to break even.
     
    mentos, Nov 27, 2009 IP
  12. mash240

    mash240 Active Member

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    #12
    Less than 6 months old - 3/4 months revenue if it looks stable. 12months + old, I would be looking at 6-10m months, again depending on the stability and how it was making its money.
     
    mash240, Nov 28, 2009 IP
  13. Remotay

    Remotay Well-Known Member

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    #13
    Wow anyone who says 6-10x monthly earnings knows very little about the industry. Established high earning sites very often go for 2x yearly income or more. The 'rule of thumb' for ESTABLISHED sites earning 15k+ a month is 2.5X yearly profit.
     
    Remotay, Nov 28, 2009 IP
  14. toycat

    toycat Well-Known Member

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    #14
    Depends on Stability of the niche, for some sites you can get about a years worth of profit :)

    High risk niches get around 2-6 months revenue.
     
    toycat, Nov 28, 2009 IP
  15. 2hr.info

    2hr.info Guest

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    #15
    15 x the monthly earnings
     
    2hr.info, Nov 28, 2009 IP
  16. smartzkool

    smartzkool Peon

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    #16
    It depends on the PR, SERP and many other things like google traffic, so only revenue is not enough, traffic origin is also there which plays a role.
     
    smartzkool, Nov 28, 2009 IP
  17. StocksonWallStreet.net

    StocksonWallStreet.net Active Member

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    #17
    I have heard the norm is usually somewhere between 8-10x earnings.
     
    StocksonWallStreet.net, Nov 28, 2009 IP
  18. donluttrull

    donluttrull Peon

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    #18
    6-8 months of NET revenue at most BUT others try for 18 months+
     
    donluttrull, Nov 28, 2009 IP