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Originally Posted by arg
Based on your description, it could honestly be worth $0, or it could be worth $1 million. How it gets traffic is crucial...if someone gets the site but it includes no traffic, the site is probably worth very little. If you spent $250k acquiring the traffic, and the net revenue was $420k minus the $250k in traffic acquisition, it would be worth a lot less. If it requires a lot of time to update or otherwise administer, those costs would also impact the net revenue, and thus its valuation. The info given is too vague to give even a rough estimate.
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Like I said above I will be disclosing full details of the site splus full revenues at the time we wish to sell. What I can say is we have spent 5 years building up this part of our buisness. We have never purchased 1 hit - all traffic we get is from the known name of some of our key domains, a limited amount from affiliates (this is our weakest point and definatly an area where the buyer will be able to increase revenue) Our overheads monthly are wages hosting - and the production of our content. Our content is all produced in house - this is one of the reasons for the success of the sites in question. Updates of course take time but this is just a small part of running site. We spend no more than 5 hours a week updating the domains, and rest is spent promoting the hell out of them. I know that the info given is vague at this point and so I dont expect a solid answer to my question. Im just trying to get a rough guesstimate. Anyone reading this who runs paysites and produces their own content will know the cost involved in production. This sale will not really be for a webmaster wanting to get into the biz , but we think aimed more at a company already well eshtablished who knows what they are doing.