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Old 03-04-2003, 11:01 PM   #1
sowned
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Buying a mainstream site

I'm interested buying this one particular mainstream site. It makes a steady 100k a year. What is the general standard for the price I should offer for a site like this?

Basically what I'm asking is how do you put a price on a site?
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Old 03-04-2003, 11:11 PM   #2
KRL
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There are a lot of factors invovled in a valuation. The simple and general rule of thumb is no more than 1.5 x annual $. Though I've seen some people say .5 x annual and some go out to about 2 x annual $.
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Old 03-04-2003, 11:15 PM   #4
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If its making a steady 100k..I'm guessing he would want around 400-500K?
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Old 03-04-2003, 11:16 PM   #5
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Quote:
Originally posted by EscortBiz
really depends on what the site is about
How well you feel its currently being promoted/advertised is a big factor too

If it's making $100k solid on its current advertising campaigns & you think you can do leaps and bounds better then that's something to factor in (for potential value of the business if you were to take it over)
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Old 03-04-2003, 11:16 PM   #6
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It looks like that site someone was selling here days ago.
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Old 03-04-2003, 11:17 PM   #7
Mr.Fiction
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Is it a head shop?
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Old 03-04-2003, 11:17 PM   #8
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email me at [email protected] I can help you out
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Old 03-04-2003, 11:18 PM   #9
EscortBiz
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Quote:
Originally posted by spunky1
If its making a steady 100k..I'm guessing he would want around 400-500K?
I hope you meant 40-50K
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Old 03-04-2003, 11:21 PM   #10
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Quote:
Originally posted by EscortBiz


I hope you meant 40-50K
Ok maybe I was a little high ,but if you had a site making that kind of coin..would you let it go at 50 k?
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Old 03-04-2003, 11:21 PM   #11
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Keyword is want. He might want a million bucks. The thing with the Net is technology. It is changing so fast, what's hot today can be outdated a year from now. Remember when everyone used Netscape? Now how many do? Remember Lotus 1 2 3? Everyone uses Excel now.

If its netting $100K you're safe up to about $200K. But even that in this market is risky.

I have a friend with a site that nets $1.8 Mil. He said he wouldn't sell it for less than $10 Mil because his brand is so entranced in that niche. But who would realistically pay that kind of price?
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Old 03-04-2003, 11:25 PM   #12
EscortBiz
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Quote:
Originally posted by spunky1

Ok maybe I was a little high ,but if you had a site making that kind of coin..would you let it go at 50 k?
I purchased many businesses, most people looking to sell need cash now and have also been bullshitted by potential buyers that said ok im buying it and never came thru,


the frustration catches up, when I buy I prepare CASH (agreement etc) and make an offer and make it clear that if its accepted they can have the cash right away no bullshit, and trust me it works like a charm.

Yes if you are the first to contact the seller he will be a hard rock but let him go thru some bullshit first.
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Old 03-04-2003, 11:28 PM   #13
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I inquired about a site a friend of mine was interested it was making around 15k a month - bandwith 1k and content (no idea how much it was) the people were asking around 300k, but I'm sure that could be negotiated
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Old 03-05-2003, 01:12 AM   #14
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depends of course...

but for web biz I say anywhere from .5 to 1.5x
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Old 03-05-2003, 01:15 AM   #15
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The internet is so volitile and changes are bound to happen,,

lets think what happen to the industry in the last two years even
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