What is a Paysite worth to sell ??

3 months of income? plus any extra for specila features like scripts, content, etc.

I think he would laugh at that one, if he is making
50k a month, why would he sell me a site for 150k ?

I heard like 1 to 1 1/2 years of what the
revenue would be.

There is alot of original content
with this deal.

2 most important questions. why are they selling? and can you trust them? or should i say how much can you trust them, you really cant trust anyone.

plus money for the time spent promoting etc hard to tell without all details yo

also depends on how far back he can verify the income. if its only for last month, no sale.

integrated not sure if you saw my other post, do you work with xascripts ?

thanks.

Good points,

Its not a major player but he is known.

I think he can be trusted, he is moving out of the main
stream as it was explained to me..

It's like 2 years worth of iBill and Epoch stats.

I have verified the income and members with a reliable source

If he wants to sell based on the rough guideline on assets and memberships you mentioned....

First, how about an independent audit of quoted sales over the last year.. ie at $50K/month.

Second.. a full listing of all content with licensing arrangements or whatever.

Depending on that, smells like it could be anything from, say $150K to possibly $400K or more. Also depends on what it is worth to you.

If actual figures are not available.. tis a totally different story

J.R.:
Beat me to it! Down to the actual assets/content next ... then a think!

Income is not all you will want to examine to determine worth.

Look at the chargeback and refund history. That could be a ticking time bomb. I would also look closely at the traffic base being used to feed the sites. Will the current channels of distribution be in place when the site is purchased and for how long? Who are the affiliates? What are they doing? Has it been managed with longevity in mind (i.e. are the partners spamming, targeting questionable keywords in the SEs, are they ethical?). I would also look at the churn rate, the server configurations, the 2257 documentation, how developed the site is for efficiency (i.e. how many billing options were used, how the exits were handled, whether they used cascading billing, whether there was any decent opt in lists compiled, etc etc etc.). Get an escrow acct for warranties and representations made by the seller. Get a lawyer.

You arent a newb at this JR, so im sure what im saying is not breaking new ground for you. I just wanted to point out that the traps for any site purchase are in matters above and beyond looking at copies of their checks from iBill/CCBILL/Paycom et al.

Very good points Scoreman,

If he runs his own merchant accounts, you will be able to transfer the member database and view the bank statements from the merchant account and should request copies of all of the chargebacks as well. Analyze the chargebacks for the past year for a trend up or down and have your merchant account use the same descriptor name if you are going to get one (smart thing to do) so there is no discrepency on the billing statements.

Mitch

inspect link popularity to make sure that all the traffic is not generated by his own sites. The domain isn't worth much if new initial sales aren't happening.