Selling a Domain reselling business.

Discussion in 'General Business' started by tnk, Jan 21, 2008.

  1. #1
    Hi DP Members

    I need some help with my Business. I am reselling domain Names for last 2 years and it is a very successful website. I have around 1200+ customers and 55 Resellers. I have satisfied customers and loyal customers too.

    I am planning to sell this whole setup. I would like to know how much will I get for this. I am making $200 to $600 per month, without any advertising or any overheads. The package would include

    1. The business with customer base.
    2. Domain Name, which itself is very valuable and already PR3

    I have solid reputation and a huge potential for growth and expansion. My backend is Resellerclub.

    Reason for sale: My Business model was based on price. I am having issues with Paypal changing its policies. To be competitive, the only option I am left with is to use Google checkout. Which I am not sure if I want to pursue now.

    If you already have a good payment gateway and if you can integrate it with this shop you will be making huge profits.

    I want to know how much can I price this ?
    Where should I look for potential buyers

    Thanks a lot in advance

    Regards
     
    tnk, Jan 21, 2008 IP
  2. exstatic

    exstatic Peon

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    #2
    Hey tnk..

    The usual way to value your site is monthly profit x 12-18months.. so in that scenario, I would value your site at about $4800 - $7200.

    If you can prove these earnings and show that they are consistent, your customer base is correct and your traffic, PR etc is all legit.. then you could ask in the higher range.

    If you can't show at least 12 months of this data.. then I would be valuing it in the lower range..

    If the site really is profiting well, why dont you look at changing your gateway? are your margins really that tight?
     
    exstatic, Jan 21, 2008 IP
  3. tnk

    tnk Active Member

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    #3
    THanks for the info.

    I can prove everything. I have all the data. The customer base is ever increasing. I had more like 15K+ in mind, considering the future potential of the business.

    Also I am only reselling domains. There is a potential to resell webhosting, email hosting and other products which have much higher margins.

    My margins are really tight and my business model is mainly based on the fact that my transaction fee would only be 3%. Due to my low margins I have been able to attract and retain customers.

    My next question is where do I find potential customers?
     
    tnk, Jan 21, 2008 IP
  4. Barefootsies

    Barefootsies Well-Known Member

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    #4
    This is correct. Often times, especially around this board, you get people trying to low ball you into a few months revenue. Anyone with a brain cell should laugh in their face.

    Depending on the site, niche or market, 12-24 is what you should be looking on most internet property. If you need cash quickly, or are looking to dump it. 6-9 is a good rule of thumb for a quick sale.

    But that is a judgment call, and should never be the norm. However, this is all contingent on the type of site, and can your prove your traffic/sales/client base. If you have proof, you should never settle for less than it's worth.

    You may have to wait it out, but you will get your coin eventually.

    2 cents.
     
    Barefootsies, Jan 21, 2008 IP
  5. theultimate1

    theultimate1 Banned

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    #5
    I know people that may be interested in this... May I have a look at your website please? You can PM the URL to me... :)
     
    theultimate1, Jan 21, 2008 IP
  6. nshadab

    nshadab Well-Known Member

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    #6
    If you are correct with the figure and the CUSTOMER BASE; this busines must get you : $8000-10000.
    Why dont you list this at ebay.com
     
    nshadab, Jan 22, 2008 IP
  7. chenzen

    chenzen Active Member

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    #7
    If you can post screenshots of traffic and revenue you can list your business at sitepoint,DP, ebay etc.,
     
    chenzen, Jan 22, 2008 IP
  8. ManU2Mech

    ManU2Mech Peon

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    #8
    Dont list at ebay.. Try selling in DP itself... SEDO is also a good option,bit the fees are high
     
    ManU2Mech, Jan 22, 2008 IP
  9. exstatic

    exstatic Peon

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    #9
    Sedo would be a good place.. but Sitepoint has quite a good reputation for selling sites also..

    I think a site of this value you need to spend to advertise, and then you will be more likely to get a quality buyer.

    IMO, DP is only good for lower value sites..
     
    exstatic, Jan 22, 2008 IP