Quote:
Originally Posted by mineistaken
I would that this is a VERY small part of the issue, because it is not seen to decline that rapidly. Meaning if you earn $1000 this month you do not expect to earn 800 next and 600 the one afterwards. Decline could be maybe 1000 > 980 > 960 and even that is too fast. 1000>990>980 maybe. So declining industry does not account too much into selling for as low as 3 month revenue.
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"a VERY small part of the issue"?
The industry's decline (real or perceived) is *exactly* the reason garden-variety sites aren't being bought and sold for the same prices they were years ago. First, in online adult's heyday you had speculators, investors, get-rich-quick'ers, etc, all over the place who were happy to plunk down money sometimes without doing their due diligence. Those guys were a dime a dozen, they've moved elsewhere now.
Second, there's now an overall uncertainty whether certain business models will even remain viable, and for how long. That's debatable, but the result is people are real conservative about their long-term estimates.
Third, on average the individual webmasters are making less money and there are fewer of them, so less buyers and less $$ in circulation.
Fourth, the affiliate model and market is shrinking and probably dying a slow death.
The 3 month thing was what Amelia said, not me. And I think she was more meaning that past a certain price-point you might as well develop your own site(s), at least when it comes to generic affiliate ones. As she says, established brands and/or good traffic is a different story.
If someone's site TRULY makes 1.5k/month they're probably asking for more than 5k, that was just something the OP mentioned offhand rather than a concrete example.