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Old 07-24-2012, 02:35 PM  
Yanks_Todd
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8-12 months of net revenue are what the aggregators are paying people that want a speedy exit or own a site that will essentially be assimilated and bled dry. I know of several deals where the sale price was 24 months gross.

That of course depends on if you are selling a quality product. Something with;

A strong brand, Good SE listings, good organic to affiliate traffic ratios, good membership numbers (retention and conversions), assets (exclusive content, email lists, etc.), a healthy growth rate, growth direction and room for more, etc.

Multiples are a hard way to value a company IMHO, especially in this business. I much prefer a pro-forma approach. Look at what the combined company will look like then price on the value the buyer gets.

If you have something of true value you will find a buyer willing to see their return around year 2 and sooner if they leverage economies of scale and have bought strategically.

So in short. Dying shitty run of the mill paysite. 6-8 months net. Well branded original quality site growing or sustaining site 24 months gross.

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