Selling a website: How to determine a price?

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  • CHMOD
    Confirmed User
    • Jun 2003
    • 1697

    #1

    Selling a website: How to determine a price?

    One of my customers wants to sell their website. It was an 100% amateur self produced website operated by a young couple. Now they are separated. The site has been running on cruise control for almost 2 years now. It has been abandoned.

    In 2012, they earned: $52 494.10
    2013: $34 500.51
    This year so far: $17 424.99

    They asked me how much they could sell their website. What do you think? Is the site sellable and on what should they base a sale price?

    I am not sure if I am allowed to post their URL yet. I will have to ask them.
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  • TeenCat
    Too lazy to set a koala
    • Jan 2007
    • 16139

    #2
    8 icecreams ... have luck!

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    • Samsonite
      Confirmed User
      • Mar 2012
      • 209

      #3
      $7000 max

      Comment

      • DamageX
        Marketing & Strategy
        • Jun 2001
        • 14293

        #4
        Whatever a buyer's prepared to pay. Given the fact that it's pretty much on auto pilot, the revenue will only keep declining. The rebills will keep going to shit, so even if it still gets some joins they'll likely cancel quite fast.
        Whitehat is for chumps

        If you don't do it, somebody else will - true story!

        Comment

        • pornmasta
          Too lazy to set a custom title
          • Jun 2006
          • 20016

          #5
          Originally posted by Samsonite
          $7000 max
          it would be compliant with the evolution of the income...

          Comment

          • wehateporn
            Promoting Debate on GFY
            • Apr 2007
            • 27176

            #6
            Originally posted by Samsonite
            $7000 max
            It should make more than that next year

            Comment

            • arock10
              Confirmed User
              • Jan 2006
              • 6217

              #7
              Depends on a few factors but mostly last 3 months of profits

              Shoot me an email with more details and I can give you a better estimate
              Sup

              Comment

              • jscott
                jscizzle
                • Feb 2001
                • 25411

                #8
                I'd like an email too, if ever posting info about the sale
                webmaster
                at
                nnboard d0t com

                thx
                “If you think tough men are dangerous, wait until you see what weak men are capable of.”
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                • seeric
                  ..........
                  • Aug 2004
                  • 41917

                  #9
                  Originally posted by CHMOD
                  One of my customers wants to sell their website. It was an 100% amateur self produced website operated by a young couple. Now they are separated. The site has been running on cruise control for almost 2 years now. It has been abandoned.

                  In 2012, they earned: $52 494.10
                  2013: $34 500.51
                  This year so far: $17 424.99

                  They asked me how much they could sell their website. What do you think? Is the site sellable and on what should they base a sale price?

                  I am not sure if I am allowed to post their URL yet. I will have to ask them.

                  Assets, equity, and cash flow.

                  35% decrease in revenue in 2013
                  50% decrease in revenue over 2013 with 29 days left in this year.
                  Giving the benefit of the doubt that 20k will be made in 2014 EOY, you've dropped revenue nearly 68% in total in just 2 calendar years.

                  The valuation is about cash flow, since any assets (mostly content), is already more than likely 2 years old and aging in the best case scenario.

                  It doesn't appear that the traffic is enough, or of the quality to keep the revenue stream steady, or the content is not compelling, unique, and has interest to make sales.

                  It's all about cash flow. People don't buy potential, they buy assets, cash flow, and equity. If the trend that has happened so far in the last two years continues, this business makes less than 5000 dollars next year, and 2K the year beyond in 2016.

                  This is a fire sale.




                  .

                  Comment

                  • PAR
                    Confirmed User
                    • May 2005
                    • 1835

                    #10
                    Originally posted by seeric
                    Assets, equity, and cash flow.

                    35% decrease in revenue in 2013
                    50% decrease in revenue over 2013 with 29 days left in this year.
                    Giving the benefit of the doubt that 20k will be made in 2014 EOY, you've dropped revenue nearly 68% in total in just 2 calendar years.

                    The valuation is about cash flow, since any assets (mostly content), is already more than likely 2 years old and aging in the best case scenario.

                    It doesn't appear that the traffic is enough, or of the quality to keep the revenue stream steady, or the content is not compelling, unique, and has interest to make sales.

                    It's all about cash flow. People don't buy potential, they buy assets, cash flow, and equity. If the trend that has happened so far in the last two years continues, this business makes less than 5000 dollars next year, and 2K the year beyond in 2016.

                    This is a fire sale.




                    .
                    Sounds about right, also what are the running cost?

                    Comment

                    • JIBCONTENT
                      Confirmed User
                      • Dec 2014
                      • 331

                      #11
                      would be fun to see if I could get it going back up in revenue...with a mothballed site I bet it wouldn't be hard - please email me when they settle on a price

                      Comment

                      • seeandsee
                        Check SIG!
                        • Mar 2006
                        • 50945

                        #12
                        5000$ if revenue stream is on 1000$ at the moment per month
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                        • mineistaken
                          See signature :)
                          • Apr 2007
                          • 29656

                          #13
                          10K would be fair price, if analytics are good (=people like the site and decrease is only due to site being abandoned).
                          If site could be revived - even more, but it does not seem so because that couple is no longer producing content.
                          Maybe introduce another couple to the site and keep updating?

                          Anyway it would not make any sense to sell it lower than 10K.

                          Comment

                          • 2MuchMark
                            Mark of 2Much.net
                            • Aug 2004
                            • 50973

                            #14
                            Originally posted by DamageX
                            Whatever a buyer's prepared to pay. Given the fact that it's pretty much on auto pilot, the revenue will only keep declining. The rebills will keep going to shit, so even if it still gets some joins they'll likely cancel quite fast.
                            "Whatever a buyer's prepared to pay." is the answer I would agree with. The buyer may have all kinds of interest in it. He may want the domain for his own idea, or he may see it as an operating business in need of a boost to increase profits. Regardless, he knows why he wants it. Ask him to make an offer, then negotiate back and fourth until you reach a deal.

                            Good luck!

                            Comment

                            • TrafficTitan
                              Confirmed User
                              • Nov 2012
                              • 350

                              #15
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                              • CHMOD
                                Confirmed User
                                • Jun 2003
                                • 1697

                                #16
                                Thank you very much everyone for your inputs!
                                I have no idea of the current running cost. I think that it is very very few money/month for the server.

                                I will send her this thread and she (or I) will contact you if there is anything.
                                Sell our Silicone Dolls and make big money!

                                Our website:
                                https://www.sexdolls-shop.com/

                                Signup:
                                http://www.sexdollscash.com/sliiing/registration.php

                                Contact:
                                [email protected]

                                Comment

                                • Paul
                                  Confirmed User
                                  • Nov 2002
                                  • 2637

                                  #17
                                  Originally posted by seeric
                                  Assets, equity, and cash flow.

                                  35% decrease in revenue in 2013
                                  50% decrease in revenue over 2013 with 29 days left in this year.
                                  Giving the benefit of the doubt that 20k will be made in 2014 EOY, you've dropped revenue nearly 68% in total in just 2 calendar years.

                                  The valuation is about cash flow, since any assets (mostly content), is already more than likely 2 years old and aging in the best case scenario.

                                  It doesn't appear that the traffic is enough, or of the quality to keep the revenue stream steady, or the content is not compelling, unique, and has interest to make sales.

                                  It's all about cash flow. People don't buy potential, they buy assets, cash flow, and equity. If the trend that has happened so far in the last two years continues, this business makes less than 5000 dollars next year, and 2K the year beyond in 2016.

                                  This is a fire sale.

                                  This!

                                  Comment

                                  • iSpyCams
                                    Amateur Gynecologist
                                    • May 2009
                                    • 4436

                                    #18
                                    As a general rule, if selling I would ask for 12 months revenue and settle for 6. But I've never been inclined to sell a business that was earning money unless I felt the handwriting was on the wall somehow.

                                    If buying I would offer 3-4 months revenue and go up to 8 if the seller is not easy to deal with. Any more than that and its easier and less risky to build my own.
                                    - As soon as I think up a good sig it's going here.

                                    Comment

                                    • Denny
                                      Too lazy to set a custom title
                                      • Feb 2005
                                      • 17390

                                      #19
                                      5-8 times monthly revenue.

                                      Comment

                                      • Ramster
                                        Confirmed User
                                        • Jul 2002
                                        • 1447

                                        #20
                                        I always LAUGH when people say 3 months income. The guy can just keep the site and get that income within 3 months, it's not like it's take a year to get your 3 months income lol. Even 5-6 months isn't worth selling unless you know the site will continue to die fast And you simply need the cash.
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                                        • Sid70
                                          Downshifter
                                          • Dec 2002
                                          • 16413

                                          #21
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                                          • The Porn Nerd
                                            Living The Dream
                                            • Jun 2009
                                            • 19787

                                            #22
                                            Originally posted by pompousjohn
                                            As a general rule, if selling I would ask for 12 months revenue and settle for 6. But I've never been inclined to sell a business that was earning money unless I felt the handwriting was on the wall somehow.

                                            If buying I would offer 3-4 months revenue and go up to 8 if the seller is not easy to deal with. Any more than that and its easier and less risky to build my own.
                                            This. Any experienced Webmaster will look at the site, the cash flow, the potential (traffic, etc) and decide if it's a money-maker (even a small one) and enough trouble to acquire. If not, he can build his own. Buy some old content for much cheaper than this couple is willing to sell for and build your own site. This site has to beat that possibility or it's not worth it IMO.
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