1. Quickly find sites and domains for sale in the marketplace based on criteria that interests you.

    Enter Marketplace

Website earnings multiple

Discussion in 'Sites' started by math20, Jun 7, 2006.

0
  1. #1
    I'm wondering what the average earnings multiple for a website that is for sale. For example; If I were to sell a website that made $100 per month profit, what would be a fair price for it?

    Thanks!
     
    math20, Jun 7, 2006 IP
  2. Kunks

    Kunks Active Member

    Messages:
    1,064
    Likes Received:
    6
    Best Answers:
    0
    Trophy Points:
    78
    As Seller:
    100% - 0
    As Buyer:
    100% - 0
    #2
    1000 to 1200

    really depends on the site and potential
     
    Kunks, Jun 7, 2006 IP
  3. bmac

    bmac Active Member

    Messages:
    659
    Likes Received:
    11
    Best Answers:
    0
    Trophy Points:
    58
    As Seller:
    100% - 0
    As Buyer:
    100% - 0
    #3
    It really depends but usually between 10-14 months. The age of the site and history plans a factor as well as time requirements.
     
    bmac, Jun 7, 2006 IP
  4. daboss

    daboss Guest

    Messages:
    2,249
    Likes Received:
    151
    Best Answers:
    0
    Trophy Points:
    0
    As Seller:
    100% - 0
    As Buyer:
    100% - 0
    #4
    i've never agreed with simply a earnings multiple as an indication of site value...

    say your site only earns $10 a month. however, there are tons of good content, design elements, etc. does that mean that you will sell for 12 times monthly earnings - i.e. $120 only?

    value depends on many things - it's always a case by case basis. if the site has good relevance to the buyer, it'll cost more...

    just my 2 cents... ;)
     
    daboss, Jun 7, 2006 IP
  5. mdvaldosta

    mdvaldosta Peon

    Messages:
    4,079
    Likes Received:
    362
    Best Answers:
    0
    Trophy Points:
    0
    As Seller:
    100% - 0
    As Buyer:
    100% - 0
    #5
    Traffic, PR, earnings, maintenance required, pages cached, potential, etc. all play a role. But, generally speaking it's usually 10 months income.
     
    mdvaldosta, Jun 7, 2006 IP
  6. Abbadox

    Abbadox Active Member

    Messages:
    1,279
    Likes Received:
    33
    Best Answers:
    0
    Trophy Points:
    90
    As Seller:
    100% - 0
    As Buyer:
    100% - 1
    #6

    I check all of the major forums that offer the buying and selling of websites and for the most part the websites that get sold are done for around 10 times their monthly earnings.
     
    Abbadox, Jun 7, 2006 IP
  7. tdnetworks

    tdnetworks Peon

    Messages:
    219
    Likes Received:
    5
    Best Answers:
    0
    Trophy Points:
    0
    As Seller:
    100% - 0
    As Buyer:
    100% - 0
    #7
    Around 10x monthly earnings is about right but when you got a site that makes over 10k/month the number goes down a little.
     
    tdnetworks, Jun 8, 2006 IP
  8. toby

    toby Notable Member

    Messages:
    6,923
    Likes Received:
    269
    Best Answers:
    0
    Trophy Points:
    285
    As Seller:
    100% - 0
    As Buyer:
    75.0% - 9
    #8
    Good post man! :) DaBoss is the man :D
     
    toby, Jun 8, 2006 IP
  9. Foggy

    Foggy Link and Site Buyer

    Messages:
    924
    Likes Received:
    159
    Best Answers:
    0
    Trophy Points:
    0
    As Seller:
    100% - 0
    As Buyer:
    100% - 0
    #9
    It may not get even $120 if there are some issues with it like pending copyright violation case, domain at arbitration under ICANN rules, sudden and inexplicable Google ban etc etc. So you can't automatically assume higher value just because it's got good content and good design. It's about a balance, it's about the complete picture. It's about all the good minus all the bad. And revenue history kind of sums that up better than any single other factor.

    But, as they say, a site's only worth what someone is willing to pay for it. We can make whatever assumptions we like about what should and should not be taken into account but that's all to no avail - it's ultimately what the buyer decides is a fair price. And buyers tend to go by past transactions and past transaction tend to be multiples of earnings.
     
    Foggy, Jun 8, 2006 IP
  10. stinkingrich

    stinkingrich Peon

    Messages:
    50
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    As Seller:
    100% - 0
    As Buyer:
    100% - 0
    #10
    It will also depend on how much the income is scalable. If it earns $ 10 per month now but the market is there for making $1000 per month from the same site, I would pay much more.
     
    stinkingrich, Jun 9, 2006 IP