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Discuss what's fucking going on, and which programs are best and worst. One-time "program" announcements from "established" webmasters are allowed. |
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#1 |
Registered User
Join Date: Dec 2002
Location: Edmonton, Alberta
Posts: 33
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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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#2 |
Entrepreneur
Join Date: Oct 2002
Location: USA
Posts: 31,429
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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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#3 |
Fuck Checks, CASH only!
Join Date: May 2002
Location: New York City
Posts: 19,422
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really depends on what the site is about
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#4 |
I need a beer
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Join Date: Jun 2002
Location: ♠ Toiletville ♠
Posts: 133,947
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If its making a steady 100k..I'm guessing he would want around 400-500K?
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#5 | |
Confirmed User
Join Date: Nov 2002
Posts: 7,761
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Quote:
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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#6 |
God is Brazilian
Join Date: Feb 2001
Location: Brazil
Posts: 10,601
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It looks like that site someone was selling here days ago.
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#7 |
Confirmed User
Join Date: Feb 2002
Location: Free Speech Land
Posts: 9,484
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Is it a head shop?
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#8 |
Confirmed User
Join Date: Feb 2003
Posts: 672
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email me at [email protected] I can help you out
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#9 | |
Fuck Checks, CASH only!
Join Date: May 2002
Location: New York City
Posts: 19,422
|
Quote:
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#10 | |
I need a beer
![]() Industry Role:
Join Date: Jun 2002
Location: ♠ Toiletville ♠
Posts: 133,947
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Quote:
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#11 |
Entrepreneur
Join Date: Oct 2002
Location: USA
Posts: 31,429
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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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#12 | |
Fuck Checks, CASH only!
Join Date: May 2002
Location: New York City
Posts: 19,422
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Quote:
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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#13 |
Confirmed User
Join Date: Jan 2003
Posts: 583
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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
icq 4009474 tell them I send you
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#14 |
$6 PER EMAIL JOiN
Industry Role:
Join Date: Feb 2003
Location: California
Posts: 13,185
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depends of course...
but for web biz I say anywhere from .5 to 1.5x
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#15 |
Confirmed User
Join Date: Feb 2001
Location: atlanta, GA
Posts: 6,432
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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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