Any input from members. We plan to list the following specs in the marketplace soon, we have an idea of the market value, however wanted to get feedback with your opinion on the valuation. ********************************** Annual Revenue: $140K Profit: $105K Years in Business: 5 yrs Industry: Web Services Valuation: ?? ********************************** Annual Revenue: $10-$15K Profit: 100% Years in Business: 1 yr Monthly Hits: 2,000,000 (grows 10% monthly) Industry: Web Marketing Valuation: ?? ********************************** Thanks for your input!
Need a little more information. For the first one, how much traffic? How much time a day is needed to run the site/service? What skills are required? Over the last 6 months have your earnings grown steadily, stayed the same, or decreased? For the second one, how many unique visitors/month. No one cares about hits, they want to know unique visitors/month. How much time a day is needed to run the site/service? What skills are required? This information would help prospective buyers weigh in...
Sockmoney - thanks for your post... For the first one, how much traffic? >> Roughly 19,000 unique monthly How much time a day is needed to run the site/service? >> 4 hours What skills are required? >> Just business management Over the last 6 months have your earnings grown steadily, stayed the same, or decreased? >> increased for 3 years straight. For the second one, how many unique visitors/month. No one cares about hits, they want to know unique visitors/month. >> 150,000 to 200,000 unique monthly How much time a day is needed to run the site/service? What skills are required? >> Just business management, very easy to manage... its all automated.
Business management is pretty general, but let's say you would need to pay someone $20/hr to be a business manager for the site. At 4 hours a day, 365 days a year would be about 30k. So 105k minus 30k is about 75k profit per year. Since traffic is very low for the site, and I know no other details, I would think you could ask 18-24 months profit, or up to 150k for site 1. Site 2 is so new you might have to settle for less than 12 months profit. But you could probably ask 10-15k for it. Hope this helps!
The world's most comprehensive guide to site valuation is here. And this is the valuation tool they recommend. sockmoney has all the right type of questions though. He makes a very important point: Differentiate salary from profit. The profit, length of time you've been making a profit, the work involved in running the site, the potential etc. all play a part in determining price. As page 5 on the above article shows, the category of site makes a big difference to the price too.