Paysite Value - How Do You Calculate How Much Its Worth? - GoFuckYourself.com

King Adam · 04-11-2006, 04:04 PM

Kinda curious as to how one calculates the value of a paysite. Can some of you more knowledgeable peeps post how you would come up with an offer if you wanted to buy a paysite or how you could come up with a price if you had a paysite you wanted to sell.

Thanks in advnce

madawgz · 04-11-2006, 04:10 PM

i think you take the ammount of money you make each month

multiply that by three, then add on $ for the quality of the domain name (if any)

Nicky · 04-11-2006, 04:13 PM

Quote:

Originally Posted by madawgz

i think you take the ammount of money you make each month

multiply that by three, then add on $ for the quality of the domain name (if any)

3 is abit low if it's a good retaining paysite with a members base, also you cant forget the content

Busty · 04-11-2006, 04:13 PM

From what I hear in the Internet business it is normally 6 to 9 times the monthly revenue on average for the last 2 years plus the value of the content and the goodwill of the domain name.

G

Snake Doctor · 04-11-2006, 04:16 PM

So many variables.
Value of the domain, amount of traffic, number of active affiliates, how much of the traffic is house traffic that may stop coming in once the site changes hands.
Value of the content (this depreciates over time, newer content=more valuable)
Are you keeping the rebills for the current members or is the current owner keeping them. (If you're keeping them then you have to put a $$ value on each member)
How many expired and current member email addresses are there? How much $$ does an expired member mailing normally bring in?

There's really no quick and dirty way to figure it out, and every deal is different. Basically it comes down to how long you think it will take for you to make your money back.....and then compare that to how much time and money it would take to build the same thing yourself from scratch.

Shap · 04-11-2006, 04:18 PM

Quote:

Originally Posted by King Adam

Kinda curious as to how one calculates the value of a paysite. Can some of you more knowledgeable peeps post how you would come up with an offer if you wanted to buy a paysite or how you could come up with a price if you had a paysite you wanted to sell.

Thanks in advnce

There are many many variables.

What seems to be most common is looking at how long it would take to pay off the site. That seems to vary from 6 to 24 months. Depending on the site. The number of new sales. Retention. Costs. Type In Sales. Internal Sales. Affiliate Sales. etc etc. Give me an example and I could give you a price range

Snake Doctor · 04-11-2006, 04:21 PM

Quote:

Originally Posted by shap

There are many many variables.

What seems to be most common is looking at how long it would take to pay off the site. That seems to vary from 6 to 24 months. Depending on the site. The number of new sales. Retention. Costs. Type In Sales. Internal Sales. Affiliate Sales. etc etc. Give me an example and I could give you a price range

Of course if you're going to sell to Shap you have to figure out what the site is worth, then cut that in half, and then subtract 10%....then he'll buy it.

You'll get even less if you sell to Pierre.

Friggin TGP guys are cheap bastards

Shap · 04-11-2006, 04:28 PM

Quote:

Originally Posted by Lenny2

Of course if you're going to sell to Shap you have to figure out what the site is worth, then cut that in half, and then subtract 10%....then he'll buy it.

You'll get even less if you sell to Pierre.

Friggin TGP guys are cheap bastards

If you sell to Pierre here is the formula

(Monthly Profit * .33) - (Cost of domain Move for Him $15) + (Guilt Factor) + (Sarcasm) = Price he pays

Busty · 04-11-2006, 04:32 PM

BTW Bouchaine what happened to all the sites you were managing for awhile?

G

King Adam · 04-11-2006, 04:36 PM

Quote:

Originally Posted by Busty

BTW Bouchaine what happened to all the sites you were managing for awhile?

G

Nothing ... still managing them and got some new ones. What made you think I wasn't doing it anymore?

I didn't know you were running Erica Campbell now.

Jace · 04-11-2006, 04:37 PM

Quote:

Originally Posted by Busty

BTW Bouchaine what happened to all the sites you were managing for awhile?

G

I think he still runs these sites, www.supermodelcash.com

Jace · 04-11-2006, 04:38 PM

Quote:

Originally Posted by King Adam

Nothing ... still managing them and got some new ones. What made you think I wasn't doing it anymore?

I didn't know you were running Erica Campbell now.

I would guess people would think because you have someone else in your sig that you don't have any of your own business...just my observation

Busty · 04-11-2006, 04:41 PM

I don't see you promoting them anymore that is why I asked.

I am working with Tim and Flashcash running the members area for http://www.busty-amateurs2.com/ and all the front ends that Flashcash designed for http://www.busty-amateurs-is-back.com/. Basically the same things I did for Jeff back in the day with the original BA.

G

Busty · 04-11-2006, 04:42 PM

Hit me up when you get out to San Diego again foolio, I opened a lounge downtown http://www.30-two.com/index.php is the almost finished web site. Definitely come and kick it with me.

G

Taboo · 04-11-2006, 06:19 PM

Quote:

Originally Posted by Busty

Hit me up when you get out to San Diego again foolio, I opened a lounge downtown http://www.30-two.com/index.php is the almost finished web site. Definitely come and kick it with me.

G

Nice Lounge

.

Pleasurepays · 04-11-2006, 06:54 PM

Quote:

Originally Posted by King Adam

Kinda curious as to how one calculates the value of a paysite. Can some of you more knowledgeable peeps post how you would come up with an offer if you wanted to buy a paysite or how you could come up with a price if you had a paysite you wanted to sell.

Thanks in advnce

from a business perspective and from experience, i can tell you that the only value in a website and primary frame of referrence for its valuation is its revenue stream. any true formula would be based solely on that. non exclusive content and design/programming are not worth a whole lot imho.

its up to you to decide how stable that revenue is and whether or not it could be expected to continue... and that would be based on the history and how far you think it could reasonably go into the future (excluding all the "i have a dream" rationalizations and ideas for how you would do it better... thats not a proven thing. its history is)

KarupLou · 04-11-2006, 08:03 PM

Quote:

Originally Posted by shap

There are many many variables.

What seems to be most common is looking at how long it would take to pay off the site. That seems to vary from 6 to 24 months. Depending on the site. The number of new sales. Retention. Costs. Type In Sales. Internal Sales. Affiliate Sales. etc etc. Give me an example and I could give you a price range

Keep 1 very important factor in mind along with all the other many variables in this question. As the site owner you are making money each and every week/month/year as the owner so the only way it makes any sense IMO is to be cashed out and for it to be a very high multiple. If its not, then why would you even consider the offer? The only way I could walk away is for it to be way worth it, otherwise I can just own it and collect the cash every month. I am sure Shap will agree with me on this(actually I know he does considering we discussed this very thing at lunch in Phoenix

) How are you bro?

Lou

seanchai · 04-11-2006, 08:25 PM

I value my sites at 3 yrs worth of profit. Most of them have been running and growing for over 5 yrs so anything less than that wouldn't be worth it.
I know owners who've stopped updating sites for years and still get a monthly return (although diminishing) for each month for all those years. One enterprising mate from the UK, didn't update for a year - when it came up to being 12 months old he simply changed the year on the updates and not the month so it looked like it was new updates!
seanchai

GTS Mark · 04-11-2006, 09:06 PM

Quote:

Originally Posted by shap

If you sell to Pierre here is the formula

(Monthly Profit * .33) - (Cost of domain Move for Him $15) + (Guilt Factor) + (Sarcasm) = Price he pays

LMFAO!! Yeah that pretty much sums up Pierre, however you have to add more sarcascm and guilt factor into the equation.

DH

Snake Doctor · 04-11-2006, 09:21 PM

Quote:

Originally Posted by KarupLou

Keep 1 very important factor in mind along with all the other many variables in this question. As the site owner you are making money each and every week/month/year as the owner so the only way it makes any sense IMO is to be cashed out and for it to be a very high multiple. If its not, then why would you even consider the offer? The only way I could walk away is for it to be way worth it, otherwise I can just own it and collect the cash every month. I am sure Shap will agree with me on this(actually I know he does considering we discussed this very thing at lunch in Phoenix

) How are you bro?

Lou

In your case that's true, however sites as successful as yours almost never hit the market because there are very very few people who could write you a check for what your site is worth.

Most of the sites that are for sale are ones that aren't making the owner a profit, or making a very small profit, and if they're bought by someone who knows how to run them well the buyer will get a nice ROI.

Then there's also the occasional person who wants to make a clean break from adult altogether and sells out for a discount.

DaddyHalbucks · 04-11-2006, 09:28 PM

1X of annual net income, plus the value of your domain, is probably pretty close.

It's very fact dependent.

KarupLou · 04-11-2006, 09:50 PM

Quote:

Originally Posted by Lenny2

In your case that's true, however sites as successful as yours almost never hit the market because there are very very few people who could write you a check for what your site is worth.

Most of the sites that are for sale are ones that aren't making the owner a profit, or making a very small profit, and if they're bought by someone who knows how to run them well the buyer will get a nice ROI.

Then there's also the occasional person who wants to make a clean break from adult altogether and sells out for a discount.

Well for us I really wouldnt know what else to do with my time. I love going to work. I feel the best personally when I put in time and we as a team are getting things done. I love to have fun, party, invest, etc... but I feel great when Im going into the office and things are coming together like we plan them to be whether it be a new project or a small deal we are trying to finalize. Lots of programs are alot of fluff and its hard to put a value on that. There are lots of companies with real assets such as content, hardware and software and perhaps a nice peice of property, etc...then there are others that are generating millions per month, but paying out millions per month with very little room for error each month so every case is so different.

King Adam · 04-11-2006, 10:19 PM

Quote:

Originally Posted by Busty

Hit me up when you get out to San Diego again foolio, I opened a lounge downtown http://www.30-two.com/index.php is the almost finished web site. Definitely come and kick it with me.

G

I will for sure. Glad to hear you are still in the entertainment biz out there. The lounge looks dope. And glad to hear you are working with the peeps at Flash Cash. I'm actually working with the fine peeps at JuggCash.com. Honestly, I think they have the best big boob gig going. No disrepect to Flash Cash, but all the images on http://www.busty-amateurs2.com/ are the old pics from Tim H. Dude, I have almost all the old busty sets on an old external hard drive. I still love Daisy and early years of Aria

Quote:

Originally Posted by Jace

I would guess people would think because you have someone else in your sig that you don't have any of your own business...just my observation

There are a couple reasons why SuperModelCash.com is not in my sig right now. The first being that D$ and I are opening www.SideCash.com in the coming weeks. It will have top of the line software running it. So for now, I don't want to promote SuperModelCash.com and get more webmasters to signup when we are going to open the new program thats going to be the home of all my pay sites and all the model sites I run.

And Jace, do you know Ashley from KY? I'm going to visit her, Tommy, Katrina and some others over the summer. It would be even better if you and your girl could make the trip too

Jace · 04-11-2006, 10:24 PM

Quote:

Originally Posted by King Adam

And Jace, do you know Ashley from KY? I'm going to visit her, Tommy, Katrina and some others over the summer. It would be even better if you and your girl could make the trip too

yeah man, I know ashley, i didn't think she still lived up there though.

I seriously doubt we can make it up there though, we try and stay away from Lexington as much as possible...there is some BAD shit up there and I prefer not to be a part of it. I love Tommy to death, and I would love to see Ashley, but Lexington is a vortex of a shit hole and I probably will never step foot in that town again for the rest of my life.

have fun though...hehe

King Adam · 04-11-2006, 10:32 PM

Quote:

Originally Posted by Jace

yeah man, I know ashley, i didn't think she still lived up there though.

I seriously doubt we can make it up there though, we try and stay away from Lexington as much as possible...there is some BAD shit up there and I prefer not to be a part of it. I love Tommy to death, and I would love to see Ashley, but Lexington is a vortex of a shit hole and I probably will never step foot in that town again for the rest of my life.

have fun though...hehe

I can totally understand. That is my home town. Drugs, addiction and drunks. I usually spend my time with the fam when I go back. But Ashley is way cool and I'm going to Cinni this summer so she said I should come down to Lexington to hang out a couple days. We'll see how it pans out. I'll take pictures for ya

Gerco · 04-11-2006, 10:40 PM

Quote:

Originally Posted by King Adam

I can totally understand. That is my home town. Drugs, addiction and drunks. I usually spend my time with the fam when I go back. But Ashley is way cool and I'm going to Cinni this summer so she said I should come down to Lexington to hang out a couple days. We'll see how it pans out. I'll take pictures for ya

In Cinnci here. IF you like hit me up on ICQ 4009474

Jace · 04-11-2006, 10:54 PM

Quote:

Originally Posted by King Adam

I can totally understand. That is my home town. Drugs, addiction and drunks. I usually spend my time with the fam when I go back. But Ashley is way cool and I'm going to Cinni this summer so she said I should come down to Lexington to hang out a couple days. We'll see how it pans out. I'll take pictures for ya

you hit the nail on the head man...LOL
keep me updated though, in all seriousness if there is a flight around that time up there for cheap I may just hop on a plane and meet you

Jace · 04-11-2006, 10:58 PM

Quote:

Originally Posted by King Adam

I can totally understand. That is my home town. Drugs, addiction and drunks. I usually spend my time with the fam when I go back. But Ashley is way cool and I'm going to Cinni this summer so she said I should come down to Lexington to hang out a couple days. We'll see how it pans out. I'll take pictures for ya

hey yo, speaking of which....do you have ashleys email and shit? if so can you email it to me, I would love to at least say hi, it has been 3-4 years since I talked to her

germ · 04-12-2006, 11:55 AM

Quote:

Originally Posted by King Adam

I can totally understand. That is my home town. Drugs, addiction and drunks. I usually spend my time with the fam when I go back. But Ashley is way cool and I'm going to Cinni this summer so she said I should come down to Lexington to hang out a couple days. We'll see how it pans out. I'll take pictures for ya

are you guys talking about lexington, ky? i thought i was the only person that sold porn from kentucky :P

Barefootsies · 04-12-2006, 01:21 PM

There is no formula.

Some people will say it's 3 months. Other's 6, some 12, and those sitting on gold will not go less than a couple of years worth.

In the end it comes down to what someone is willing to unload it for, and what someone else is willing to pay. The end.

A good domain's nice. Exclusive content, and a few years of it, all the better. Rebilling members, monthly revenue, and traffic are the crown jewels.

In the end it's subjective to numerous variables beyond that, ending in the buyer and seller.

Jace · 04-12-2006, 01:31 PM

Quote:

Originally Posted by germ

are you guys talking about lexington, ky? i thought i was the only person that sold porn from kentucky :P

dude, there are a few people in Lex...in fact, one of the largest tgp guys is in lexington ;)

ask around, you will find more too

I lived there for 13 years, until I wised up and realized it is a shit hole drunk tank haha

the only things there are to do in lexington are drink, eat and do drugs....

andrej_NDC · 04-12-2006, 01:36 PM

Those who are selling, 3 years, those who are buying, 3 months.

King Adam · 04-12-2006, 02:43 PM

Quote:

Originally Posted by Jace

hey yo, speaking of which....do you have ashleys email and shit? if so can you email it to me, I would love to at least say hi, it has been 3-4 years since I talked to her

Email sent bro. Hope you can make it up there for a couple days.

Quote:

Originally Posted by Gerco

In Cinnci here. IF you like hit me up on ICQ 4009474

I'll add you to my ICQ. I'll be in the Cinnci/Lexington area for a week or so. I'm always down for meeting new webmasters.

RogerV · 04-12-2006, 02:46 PM

Quote:

Originally Posted by madawgz

i think you take the ammount of money you make each month

multiply that by three, then add on $ for the quality of the domain name (if any)

I agree with this.

baddog · 04-12-2006, 02:47 PM

Quote:

Originally Posted by madawgz

i think you take the ammount of money you make each month

multiply that by three, then add on $ for the quality of the domain name (if any)

Why would anyone sell a program (or anything else for that matter) for 3 months of income?

Depending on the site:

6-12 months income
branding
# of affiliates
# of members
scripts
exclusive content or not
design

baddog · 04-12-2006, 02:54 PM

Quote:

Originally Posted by andrej_NDC

Those who are selling, 3 years, those who are buying, 3 months.

Shap · 04-12-2006, 02:54 PM

Quote:

Originally Posted by baddog

Why would anyone sell a program (or anything else for that matter) for 3 months of income?

Depending on the site:

6-12 months income
branding
# of affiliates
# of members
scripts
exclusive content or not
design

You'd be so surprised. It amazes me. Some of the deals I've worked out and I'm sure the same for Pierre just blow my mind. I guess when you need money or want out that's the way it is.

GigoloMason · 04-12-2006, 03:18 PM

Real world business valuation is based on earnings (not rev), growth, and stability if you want a really oversimplified answer.

Not suprisingly 'site' valuations seem to be more in line with whatever numbers joe-blow cares to pull out of his ass

Granted ultimatly a site is worth whatever someone is willing to pay for it so who knows maybe joe-blow is on to something.

Either way I'd probally try to get a more reliable source than random board posters if you're serious.

germ · 04-12-2006, 03:28 PM

Quote:

Originally Posted by Jace

dude, there are a few people in Lex...in fact, one of the largest tgp guys is in lexington ;)

ask around, you will find more too

I lived there for 13 years, until I wised up and realized it is a shit hole drunk tank haha

the only things there are to do in lexington are drink, eat and do drugs....

there are lots of cities in the US where that is true. we should have a big ass kentuckiana webmaster convention. better yet, lets just go somewhere eat, drink, and do drugs :D

edit: im actually from louisville, not lexington. its only like an hour and a half away though.

KCat · 04-12-2006, 05:03 PM

If it's a single girl site, even less since you'll eventually run out of updates & every girl who retires seems to pop up somewhere else eventually.

aimeesweet · 04-12-2006, 05:06 PM

Quote:

Originally Posted by Busty

Hit me up when you get out to San Diego again foolio, I opened a lounge downtown http://www.30-two.com/index.php is the almost finished web site. Definitely come and kick it with me.

G

Gavin, your new place looks insane... nice wine list!

xoxo

ddfGandalf · 04-12-2006, 06:05 PM

yeah, content price, domain value, existing members, retention, and monthly profit.

04-11-2006, 04:04 PM	#1
King Adam Confirmed User Join Date: Jul 2003 Location: Valley of the Sun Posts: 5,408	Paysite Value - How Do You Calculate How Much Its Worth? Kinda curious as to how one calculates the value of a paysite. Can some of you more knowledgeable peeps post how you would come up with an offer if you wanted to buy a paysite or how you could come up with a price if you had a paysite you wanted to sell. Thanks in advnce __________________ TWISTYSCASH.com - Proven to be One of the BEST Adult Programs Around Promote These Sites : Twistys ~ Busty Ones ~ Nicole Graves ICQ : 9 6 4 4 0 2 2 1

04-11-2006, 04:10 PM	#2
madawgz 8.8.8.8 Industry Role: Join Date: Mar 2006 Location: Noordermarkt Posts: 30,509	i think you take the ammount of money you make each month multiply that by three, then add on $ for the quality of the domain name (if any) __________________ TAEMDLRMSKRJIXMRLSMRJ.

04-11-2006, 04:13 PM	#4
Busty Confirmed User Join Date: Jan 2006 Location: San Diego Posts: 802	From what I hear in the Internet business it is normally 6 to 9 times the monthly revenue on average for the last 2 years plus the value of the content and the goodwill of the domain name. G __________________ Busty Amateurs - the original girls and and tons more busty amateurs.

04-11-2006, 04:32 PM	#9
Busty Confirmed User Join Date: Jan 2006 Location: San Diego Posts: 802	BTW Bouchaine what happened to all the sites you were managing for awhile? G __________________ Busty Amateurs - the original girls and and tons more busty amateurs.

04-11-2006, 04:41 PM	#13
Busty Confirmed User Join Date: Jan 2006 Location: San Diego Posts: 802	I don't see you promoting them anymore that is why I asked. I am working with Tim and Flashcash running the members area for http://www.busty-amateurs2.com/ and all the front ends that Flashcash designed for http://www.busty-amateurs-is-back.com/. Basically the same things I did for Jeff back in the day with the original BA. G __________________ Busty Amateurs - the original girls and and tons more busty amateurs.

04-11-2006, 04:16 PM	#5
Snake Doctor I'm Lenny2 Bitch Join Date: Mar 2001 Location: On top of my soapbox Posts: 13,449	So many variables. Value of the domain, amount of traffic, number of active affiliates, how much of the traffic is house traffic that may stop coming in once the site changes hands. Value of the content (this depreciates over time, newer content=more valuable) Are you keeping the rebills for the current members or is the current owner keeping them. (If you're keeping them then you have to put a $$ value on each member) How many expired and current member email addresses are there? How much $$ does an expired member mailing normally bring in? There's really no quick and dirty way to figure it out, and every deal is different. Basically it comes down to how long you think it will take for you to make your money back.....and then compare that to how much time and money it would take to build the same thing yourself from scratch.

04-11-2006, 04:42 PM	#14
Busty Confirmed User Join Date: Jan 2006 Location: San Diego Posts: 802	Hit me up when you get out to San Diego again foolio, I opened a lounge downtown http://www.30-two.com/index.php is the almost finished web site. Definitely come and kick it with me. G __________________ Busty Amateurs - the original girls and and tons more busty amateurs.

04-11-2006, 08:25 PM	#18
seanchai A Grooby Guy Industry Role: Join Date: Jul 2005 Posts: 397	I value my sites at 3 yrs worth of profit. Most of them have been running and growing for over 5 yrs so anything less than that wouldn't be worth it. I know owners who've stopped updating sites for years and still get a monthly return (although diminishing) for each month for all those years. One enterprising mate from the UK, didn't update for a year - when it came up to being 12 months old he simply changed the year on the updates and not the month so it looked like it was new updates! seanchai

04-11-2006, 09:28 PM	#21
DaddyHalbucks A freakin' legend! Industry Role: Join Date: Feb 2004 Location: Las Vegas, Nevada USA Posts: 18,975	1X of annual net income, plus the value of your domain, is probably pretty close. It's very fact dependent. __________________ Boner Money

04-12-2006, 01:21 PM	#30
Barefootsies Choice is an Illusion Industry Role: Join Date: Feb 2005 Location: Land of Obama Posts: 42,635	There is no formula. Some people will say it's 3 months. Other's 6, some 12, and those sitting on gold will not go less than a couple of years worth. In the end it comes down to what someone is willing to unload it for, and what someone else is willing to pay. The end. A good domain's nice. Exclusive content, and a few years of it, all the better. Rebilling members, monthly revenue, and traffic are the crown jewels. In the end it's subjective to numerous variables beyond that, ending in the buyer and seller. __________________ Should You Email Your Members? Link1 \| Link2 \| Link3 Enough Said. "Would you rather live like a king for a year or like a prince forever?"

04-12-2006, 01:36 PM	#32
andrej_NDC Registered User Industry Role: Join Date: May 2004 Posts: 7,760	Those who are selling, 3 years, those who are buying, 3 months.

04-12-2006, 03:18 PM	#38
GigoloMason Confirmed User Join Date: May 2005 Posts: 742	Real world business valuation is based on earnings (not rev), growth, and stability if you want a really oversimplified answer. Not suprisingly 'site' valuations seem to be more in line with whatever numbers joe-blow cares to pull out of his ass Granted ultimatly a site is worth whatever someone is willing to pay for it so who knows maybe joe-blow is on to something. Either way I'd probally try to get a more reliable source than random board posters if you're serious. __________________ Last edited by GigoloMason; 04-12-2006 at 03:20 PM..

04-12-2006, 05:03 PM	#40
KCat Confirmed User Join Date: Sep 2002 Location: PNW Posts: 2,204	If it's a single girl site, even less since you'll eventually run out of updates & every girl who retires seems to pop up somewhere else eventually. __________________ ~ 300+ FHGs, 100,000 pics to use plus a rockin' Video of the Day download! ~

04-12-2006, 06:05 PM	#42
ddfGandalf Confirmed User Join Date: Feb 2005 Location: Budapest, Hungary Posts: 534	yeah, content price, domain value, existing members, retention, and monthly profit. __________________