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Old 02-18-2002, 02:50 PM  
FreeOnes
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Join Date: Jul 2001
Location: The Netherlands
Posts: 3,400
The price of your site

There have been several post on this board of webmasters who wanted to sell their porn site. Everytime this resulted in a discussion of what a site would be worth and what a fair selling price would be. The $1 offer posts were useless of course... Anyhow I've read a few times that the site would be worth 6 times the monthly profit.

I think that's not a fair price at all. Example when you sell your site for 6 times the monty profit:

Profit each monht: $10,000
Selling price: $60,000

The person who would buy the site will make a profit of $120,000 after 1 year. Then the ROI (return of investment) is ($120,000/$60,000)*100%=200%

Imagine 200% in 1 year that's unbelievable high. The interest rates in the USA are not higher than 1.5% at the moment! Of course I know that there are more risks with investing your money into a porn site than into a savings account of a bank. But if you do a good auditing you can eliminating the risk to an acceptable risk.

In the "normal world" companies get sold for about 8 times the annual profit. In my example that would mean 8 * 120,000= $960,000 And I don't think there should be a big difference with porn companies/sites. Porn is almost recession-proof.

Let me know if you aren't convinced and why. The people who are convinced can bid on my site now
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