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Old 09-26-2013, 02:31 AM  
Markul
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Join Date: Dec 2007
Location: The land that liberated porn
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It's hard to put a price on a site/company. But always keep in mind that there are different reasons for selling (probably more than these too):

- Those that are selling a healthy business because they want out of adult or need to do something entirely else. They are selling at the right time so to say and obviously these products/companies are worth MUCH more than those below.

- Those that are selling an "unhealthy" business where they spent a lot of money, but never saw a return. They will argue that they spent a lot of money on it and probably don't want to show any numbers (because they aren't there). They will also talk about potential.

- Those that milked the cow until it's dry and now wants to sell what is left (most probably belong in this category). They should have sold earlier if they wanted a good price.

- Those that don't give a fuck and just want to move on or is forced to make a quick sale and then sell it to the highest bidder.

The last one is where you can make a quick buck, but they are rare. I had a dude sell me his mainstream products (some software) cause he needed to pay a medical bill. Best deal I ever made.

The first one most of us probably can't afford. I can't hah. But I also run a very small operation.

For paysites the few sites I have bought I've not paid more than 6-12 months of turnover and I took over the client account with the biller.

I'd say that rebills should always be transferred - because if the seller "kept the rebills" the buyer could just "turn off the rebills" or the users. It's a dick move and a bit of a scam, but in either case, it's not a situation you want happening and for many buyers, the temptation could be too big and as a seller it's a risk you want eliminated.

BUT the thing is that amount of sales are kinda useless if you don't know the costs involved. I could be spending 10K to make 8K sales a month and then try to offload the site for a years worth of profit. So it's important to look at rebill ratios and base your math on that as a buyer.

I have trouble valuating content, there are probably people better at that. I'd think anywhere from 5-25% of the cost price depending on saturation.

Just my
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