What's a good price to pay for a PR2 site earning $20/m

Am about to make my first website purchase but before I do so, want to make sure not paying too much.

Site's around 2 years old, has traffic of around 100 uniques a day, has PR2 and makes $20 to $30 in Adsense a month. How much would you pay for such a site?

 

Probably around $300, depends on other factors too

 

I agree. 300$ max based on earnings only, but could be more

 

so i haven't got too bad a deal then. i got it for $200.

 

Besides gross income, it depends on how much time the site takes to maintain. If it takes 1 hour or 5 hours a week, then it is worth a lot less than a site that doesn't require any time. You have to place a value your time. Even 1 hour a week only means $7.50 an hour plus what you have to pay to buy the site for the right to earn that. After you figure in labor and all expenses, anywhere from 8X to 12X montly net seems to be the range. On a site that is making thousands of dollars per month, the multiple can even go higher.

 

You will want to look at
1. The growth rate of the site... do the stats improve every month ?
2. Growth rate of competitors
3. How many inbound links exist

 

As long as it keeps earning $20/month, I'd say you got a great deal. And hopefully, you can work to get it making more than that.

 

It may be worth much more than 200, or not even worth that, there's more important factors than the PageRank to consider. Traffic, source of traffic, source of income, how long has the income been at 20 a month, what are the expenses of running the site, how much time does it take, is the content of the site unique, if it sells a product then you need to know about that industry as well.

 

I'd also value the site on how well it fit in to my niche of sites. Is it similar where I could help drive traffic to it?

How is the design? A professionaly designed website could cost in the mid hundreds... a template can be had for free. It makes a difference to me when valuing a website.

Will the backlinks remain after the sale?

 

I'd say $100.

 

$200 to $300, as domain is 2 years old, search engines spiders and robots would have spidered it more times than other fresh domain, so according to my opinion $300 is min.

 

I remember reading (in another forum, some time ago) several posts from a guy named Kirt Christiansen (sp?) who was experienced in buying, selling and appraising websites - both for himself and other people. His rule of thumb was a website was worth whatever it earned for 6 months.

 

I don't think that anyone adhering strictly to that rule would last very long in the market.

 

I'm sure there was probably more to it than that. Things like this website is 2 years old, definitely out of the sandbox and all. Just offered it up as a place to start.

 

i would buy it for 150

 

Well, I was thinking even more simple things than that. For example, how much of what the site makes is actually profit. I enjoy telling people how easy it would be to make a site that makes a million dollars a month. I just tell them, all they have to do is pay me two million a month, and they can have that million a month site. But, someone going by the six months earnings rule would be even better for me. I'd get six million for a site that loses a million a month.

 

well my main criteria for choosing the site was that the domain was more than 2 yrs old, out of the sandbox and I saw a lot of scope for improving upon the earnings/

 

Can you please elaborate on that ?

 

Not really. Given that this is all I know about the site-

 

The common rule of thumb is that a such website was worth whatever it earned for 6 months. This can increase upto 12 months if the URL name is very good or if the revenues are growing.