Hey guys.. I have a site and would like to know how much is worth. I'll give the details below: Ecommerce site for Contemporary Furniture Been in business for 2 years. Established dropship account with 3 large wholesalers in furniture. 300 products in the site. 1800 number Domain is a PR4 Visitors Between 200 - 300 uniques a day - 4,000 - 7,000 uniques a month 20,000 - 25,000 pageviews a month. Keywords: Ranked #3 - #9 in google, organically for main keywords such as contemporary furniture leather sectional leather sofa Sales: 1 - 2 orders a week. Average sale $600 Best month in sales was $7,000 Net profit: 20% - 35% Adsense income: $8 - $12 a day = $250 - $350 a month. Expenses: Hosting $30 Merchant $100 1800 $50 Other $50 Each order takes about 1 hour to confirm,process,update, confirm delivery. Site administration, takes about 20 minutes to upload each product. The site is built on Xcart 4.0, heavily modified, design is custom made by me. In total, I just want to know how much can I expect to get if I sale the entire business. Thank you.
I think you meant Adsense is $250.00 - $350.00 per month income rather than an expense? Or do you spend that on Adwords? Basically I took an average of the numbers you suggested and predicted somewhere around $1800.00 per month income (Net). I multiplied by 8 months and I think you could easily get $15,000 for your business. I think the benefit you have is that you have been in business for 2 years. So you could pontentially get close to 12 months of your net income maybe.
Adsense income is what I meant. I dont spend on ppc. Thank you for your estimate Do you think it would be easy to sell it for that? $15K? where is the best place to advertise such sale?
You might want to consult a business broker. On the web, people will usually say something that is less than a years worth of profit which is actually quite low and may be the affect of many here today, gone tomorrow segments on the web like pixel sites, Mesothelioma, ringtones, etc. In business valuations, you normally a discounted cash flow or some other measure. As a rule of thumb I would ask myself what is the face value of a bond that would pay me this amount of net profit. So if I had a profit of $1000 and I could find bonds at 10%, the value of the business would be $10,000. The last valuation work I did was 10 years ago and it involved bricks and mortar businesses. If you check with a broker and find some good information, please share it.
There are complex formulas for valuation but as I looked at them two factors were the drivers: cost of finance and growth of earnings. So my little rule of thumb gets you in the ballpark without picking up a calculator or pencil. If you sell a goose that will give you golden eggs for years to come (furniture is not some trendy thing like ringtones or a talking Elmo) for less than a years worth of golden eggs, you are short changing yourself.
Sitepoint.com is the best place for you looking to sell your website. But you can even advertise here on DP in the buy sell section.