When you say your site makes $xxx ...

I have been basically buying sites which are brand new or have no revenue as yet so the revenue part has not come into the picture but I would in the future bid for sites which have a constant revenue stream.

For those of you who are selling your site and they do make money, when you say it is getting income of $xxx a month, is that gross revenue or net revenue (after expenses). If it is Gross Revenue, wouldn't it be fair to exactly state the total expenditure and what is being spent for what so that at least the new owner doesn't get into a situation which may be disadvantage for him.

Because you could say your site makes $100/mth but if you need to spend $99/mth to get that $100 then the income is only $1/mth. Or even worst, when the expenditure exceeds the revenue. This are the things which I am concerned about.

Also when you state a selling price do you base it on 8 to 10 times the gross or net revenue and what income do you based the price on, would it be average of a 6 months or 12 months time frame ? Because if it is just based on last month's income, it may be a skewed picture.

Also it be nice if you state your reason for selling because sometimes I wonder, if the site is making good money and it is only a few months old, why are you selling it ? It always makes me think that there is something that you are not telling me, some gotcha which I would be trapped in when I get the site, like maybe some unhappy customer or the facts do not add up. If you tell me that you planned badly and are way over your head, I would appreciate that because if it is honest then it is good.

Especially so if it is a quick sale and for a high BIN.

Well, just some food for thoughts.

 

Why is this in the BST forums?

Anyways, most sites generate free search engine traffic (hence no expenses) so all revenue reported is in actual fact profits.

As for the why are you selling part, some webmasters are in the business of buying/selling sites for cashflow. Hey I wish I didnt have to sell all my sites!!!

 

You ask some good questions. Be sure to save these questions for the next seller you work with. You have to be careful, there are a lot of folks out there just looking to turn a quick buck. They'll say and do anything to convince you of whatever you want to hear.

 

Hosting....

 

I hear what youre saying.

However, it is best that you ask these questions of the seller. People often will leave out the bad bits when trying to sell.

Notting

 

C'mon dude are you being serious?

If it's a low bandwidth site we're talking about here, where talking about what, maybe $3-5 per/month. What's that in the scheme of things for a profitable site?

 

Well, the $3 to 5 per month income, I will just treat it as nothing substantial and could take the risk with it. But what I am referring to are those sites which claims to have income level of several hundreds or thousands of dollars. Those are my concern.

Sorry that this is in the wrong section. I am not sure where to put it and well, it is related to the Buy and Sell issue anyways.

Could you move it to somewhere appropriate ? Thanks.

 

IF it is....

 

Well yeh... if your on dedicated servers which cost ya $100 per/month, you'd expect the seller to be upfront about that Otherwise, shared hosting is as cheap as chips these days, and most webmasters realise that and take it into account.

 

everyone has a different price on hosting, and everyone *should* know what its going to cost them to host a site before they bid on it.

If they are buying clicks for the site, or currently buying monthly links this should be listed however..