Looking to Sell Your Site/Business? Step Inside!

Yea I don't know where he got the 10 years, it's totally wrong

Didn't see this thread because I've spent the last four days down in South Beach, living the dream.

I've had offers to buy my company several times over the past 4-5 years. Each time I was still growing but had not yet reached the level where selling my biz would allow me to retire or significantly invest in other businesses. So essentially I would've just been selling my job - and without something else to do! Sure I could've lived off the money for a year or two or gotten a j-o-b somewhere. But why? I was still growing and I have a "magic figure" in my head. Once that is reached it's bye-bye Porn Nerd (hello beach).

But it really depends, like everything, on the situation. If there's not a pressing need or desire to sell then the owner can set his price (2x,3x,4x earnings) and if he doesn't get it he knows time is on his side and he'll get it eventually. Of course, if we're talking 100k+ a month vs. 20k a month it may be worth it just for the seed capitol.

Man does not live by bread alone. Look at what happened to Shap... Of course he has a lot of other stuff going on.
I'm sure you have other things to do, good luck to you.

It's not all it's cracked up to be. I lived on Isle of Capri in Australia for 5 years, now here at Monarch Beach, California for 6 years. And how many times I actually go to the beach?

you have to look at the whole picture... my guess is OP wants to pay closer to 1X, to maybe 2x annual revenue tops AND wants a business that is growing AND wants a business that is relatively simple to run (he obviously doesn't want to grind 100 hrs per week anymore)...

so chances of reaching a deal with those conditions are slim to none...

Not really... Its business major 101

Similar to bond or real estate valuations, the value of a business can be expressed as the present value of expected future earnings over the years. Use any calculator to determine the value of your business today based on discounted future cash flows with consideration to "excess compensation" paid to owners, level of risk, and possible adjustments for small size or lack of marketability.

So if you can show that your business has a solid base then:



Now, I have applied the standard growth of the years expectations, but reduced it by 10% per annum for lack of marketability.... There are many calculators, but all will come with the same or similar results...

Of course there are many caveats...most of these formulas presume that the business has its own assets and longevity over the years. In our ( web owners) case that we own an exlusive content... So..if you just recycling other content, you are completely correct not worth a rats ass.

there is business school theory and then there is real life... in real life, business is worth whatever someone is willing to pay for it, and since no one will ever pay 10x for an adult business, it's clearly not worth 10x like you are claiming...

That may be the theory that they teach in school. And I'm sure they based it on brick and mortar businesses. The fact is, ONLINE businesses are sold for a few years of revenue, not 10. Everything is worth what they pay for it, and this is the multiple that buyers are willing to pay for online businesses.

Now this information is from online mainstream, and affiliate adult sites. I don't have any information about adult paysites. But I really doubt it that anyone would buy a paysite for 10 years of profits.

The online world changes much faster than brick and mortar, buying a website is not the same as buying a grocery store or an auto shop. Facebook, Twitter, Booking.com appeared roughly 10 years ago. Who knows what it will be like in 2026?

Maybe that calculator would work, if you set the level of risk variable really high. Because it IS really high.

Do not want to argue but as i said in my last post. It is the content ( film library) somebody would be buying, NOT a website per say...in an original content business ( adult or Hollywood) the "brick and mortar" refers to copyrighted content ( used to be masters on film, then on tapes and now located on hard drives), but it is all still basically the same. If you own a lot of good content, this will have a so called " long tail" of consumption. ( note how many vintage and classic sites there are). I am still selling ( and getting rolyalties from others) on a movie I have made in 1992 !!! Of course not for 100s of "Ks" as then, but 10 K per year is not so bad and after 25 years it is the " long tail" I am referring to.

Of course you are also right that the price is determined if there is an interest, but you may have to make a presumption that there is a business who will apply the same rules to adult business as to any other business.... And that is

If you sell a "smoke and mirrors" you get pittance, but if you have a real value you will ( sooner or later) get it.

Anyway I do not know CPM from ATM or MechBunny from the EnergizerBunny, but I know business and finance...

good luck finding that gem.

its actually very easy to do, just requires a bit of cleverness.

What are we arguing about?

Just ask Shap how much he sold Twistys.com/Gaytube.com for (i mean in terms of how many months profit).

Stilll quite a useless number. Unless you're selling the exact same business with the exact same brand recognition and the exact same etc. etc.

Like said already in the end what matters is what someone is willing to pay for it.

I think porn is different from mainstream movies. Old porn isn't worth much. Sure, there are vintage porn sites, but it's a tiny thing in comparison to the rest. There are also sites that have bought 10000s of old scenes - VideoBox, VideosZ (and Bang), MovieBox, Adult Empire Unlimited, BaDoink, etc. You can buy old content for pennies.

If you bought a website, you'd be buying the brand rather - the fans, the working promotion infrastructure, the affiliates, etc. Unless you can continue to produce movies that are exactly the same, the site and the earnings will decline fast, IMO.

Heh today it is 45 and raining in NYC and yesterday it was 80 in Miami. Believe me, I will take the beach (whether I actually lay on it or not). LOL

I disagree on this point. Even if it is 'recycled' it is still valuable if it's bringing in revenue. Yes exclusive original content will be worth more but it's all about the revenue being generated. As many Producers have learned over the past few years (sadly), their libraries of exclusive content are worth less and less each year as piracy and those dreaded tubes make 'exclusive' a relative term.