Hi, I want to hear your opinions about the price while selling or buying a general web directory with revenue. What should be the price according to the revenue? How many months of revenue can be the price? 6, 9, 12, 18 or something else? Also what is the effect of the backlinks number of directory on the price? Is just PR important or backlink number also may increase the price?
i usually say 5-10. Would you want to pay x amount of money and continue running the site for x months until you broke even?
Thanks mikey, actually I am planning to sell my directory and thought that it was the most logical way to consider its revenue while mentioning a price. It may be less risky for a buyer to know in approximately how many months he can earn what he paid. In SP, I saw people who set the BIN as their 12-months of revenue. But of course I will do more research and be willing to read posts from this topic.
It really depends on how the directory is doing overall and how much has been invested in it. 10-12 months revenue is good plus extras, plus possible potential. For example, I only have very limited time to spend on my sites, so it it is making say $500 a month for me it could very well make $700-$1000 for someone that has more time to spend on it. What it really comes down to is every sale is different and you have to judge a site/directory on many diffent aspects.
You can always sell it later if you want to break even. A quality directory is worth more than 10 months revenue imo.
OK, after considering these I have prepared a sale thread here: http://forums.digitalpoint.com/showthread.php?t=563489 I tried to find the best price. Still willing to listen any recommendations, if you have any, related to this sale. But that is really difficult for me to leave my lovely N1Q. I feel something that I can't describe.
I have created a listing in SP, thanks for the advice: http://www.sitepoint.com/marketplace/auction/16161