what kind of site is it? where is the traffic from? affiliates or search engines , etc?
if you give a url that would help. Alot of factors play in when estimatin ghow much its worth.
Its not 1 site but a number of sites - I dont want to give the domain name here at this time as I will be making another post in the near future with much more information about the set up , running costs , areas of growth, and a complete picture of revenues generated. The 420 is only from 1 billing agent so the figures we generated in 2004 are higher than the above. But what im trying to get is a rough guess at what an adult buisness that generates the above kind of figure could be worth. Sorry I cant give more info out at this time - but we will be soon.
Based on your description, it could honestly be worth $0, or it could be worth $1 million. How it gets traffic is crucial...if someone gets the site but it includes no traffic, the site is probably worth very little. If you spent $250k acquiring the traffic, and the net revenue was $420k minus the $250k in traffic acquisition, it would be worth a lot less. If it requires a lot of time to update or otherwise administer, those costs would also impact the net revenue, and thus its valuation. The info given is too vague to give even a rough estimate.
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Based on your description, it could honestly be worth $0, or it could be worth $1 million. How it gets traffic is crucial...if someone gets the site but it includes no traffic, the site is probably worth very little. If you spent $250k acquiring the traffic, and the net revenue was $420k minus the $250k in traffic acquisition, it would be worth a lot less. If it requires a lot of time to update or otherwise administer, those costs would also impact the net revenue, and thus its valuation. The info given is too vague to give even a rough estimate.
Like I said above I will be disclosing full details of the site splus full revenues at the time we wish to sell. What I can say is we have spent 5 years building up this part of our buisness. We have never purchased 1 hit - all traffic we get is from the known name of some of our key domains, a limited amount from affiliates (this is our weakest point and definatly an area where the buyer will be able to increase revenue) Our overheads monthly are wages hosting - and the production of our content. Our content is all produced in house - this is one of the reasons for the success of the sites in question. Updates of course take time but this is just a small part of running site. We spend no more than 5 hours a week updating the domains, and rest is spent promoting the hell out of them. I know that the info given is vague at this point and so I dont expect a solid answer to my question. Im just trying to get a rough guesstimate. Anyone reading this who runs paysites and produces their own content will know the cost involved in production. This sale will not really be for a webmaster wanting to get into the biz , but we think aimed more at a company already well eshtablished who knows what they are doing.
A number of reasons. The main one being I have been involved in this for the past 5 years. Every day of my life since the morning I launched has been taken up with building the sites to what they are today. When I started I only wanted to make a few bucks to cover a trip over christmass but for some reason we sold memberships on day 1 and have not stopped since. Its been great and still is, but I need to concentrate on other projects and companies we have going. I dont want to get to a stage where I feel - Fuck this sucks - cause then it effects my output, i start producing a bad product - and sales go banf - And their is always the fact that a site that nets good bucks a month is surly worth something - and sooner or later I would sell so why not now.
Another question I always hear coming up on this kind of subject - is how much does is cost to run the set up? this really is down to the company running it. Its so varied - what it costs me wont really be the same as what it could cost someone else. Take site designs promo material etc. We outsource for this - we have a budget for this and have had some great designs done. But yes it costs, but for us its a helluva lot cheaper and easier than employing our own full time designer/s. Another company may already have a design team in house so the cost is on a totally differnt scale. The same goes for hosting - who you are with - what kind of deal you have cut - how much overall bwidth you use. We get a decent price cause we pump alot of gigs - i know i could get it cheaper but I been with the same company since day 1 and know where i am with them.
Plus their is always the question of traffic. Like I said we aint ever purchased 1 hit - our ranks on google are high and very specific to our market. Its a whole process we have built up over 5 years sweat - we have had to learn on our feet from day 1 .. I do know without a doubt that in the right hands and with a company that can invest the time especially in the affiliate side of things that they can raise revenues from what they are now. And sustain and continue the year in year out growth that our accounts show.
Dont agree. Its worth the current market value based on past trading history strength of product - projected growth. And of course I would only sell if I felt the price was was right.
Dont agree. Its worth the current market value based on past trading history strength of product - projected growth. And of course I would only sell if I felt the price was was right.
Um no.
It is worth (for resale value) ONLY what someone is willing to pay you for it, not a dime more.
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