How Much Is A Paysite Worth That Is Bringing in $18-20,000 A Month?
 

If you were to buy it outright from the owner...

3 months income, 6 months income, 1 year?

Your thoughts? :)

DH

You are asking the wrong crowd. ;)

hehe you never know, I like to give people the benefit of the doubt ;)

DH

Processor?

a 'fucking lot'

..is the technical term

is it growing or dying? or stagnant?

Cascading processing with all the usual suspects :)

DH

Within this processing environment??

:2 cents:

Currently growing but not exponentially.

DH

Epoch / ccbill assume? Are there revshare payouts on either?

In any business that you buy, the costs usually gets decided by monthly income X 3 months.

it depends on 100s factors, you know that. :-)

does it come with content? exclusive or not? Is there an established affiliates base or not?

everyone usually says 6 months or so. pretty hard to judge these days...

I've seen people value those types of deals as low as 3 months revs to 2 years revs and everything in between.

3 words.

Bull Fucking Shit.

I would base it on a few factors:

A. Statistically proven retention. In other words, how long would it make that 18 - 20k with no new traffic.

B. What traffic it brings with it. EG - are you going to continue to get signups without providing traffic yourself? If so, how much, and factored into (A)

C. Content costs.

D. Statistically proven conversion ratios. If you are going to supply traffic, how will it convert based on past provable stats?

IMO, those would be the base factors.

That's what happens when everyone with 0 business experience opens a site. :glugglug

In any business? What? Are you smoking a new kind of drug?

Is that Gross or Net?

Are you nuts?

You'd have to be pretty desparate and plain stupid to sell a biz for 3 month's earnings, unless it was a dog with fleas about to go under and you're trying to do a bailout.

hehe, yep it comes with content, it's not exclusive. There are 100+ affiliates but as you all know only 5-10% of people who ever sign up actually send any traffic ;)

The 18-20k per month is net not gross.

DH

hehe I hate to agree but KRL is right ;)

DH

Did you get a wire today? Are you with ibill Eu? Do you have a solution to move forward with Ibill?

Sorry for 20 questions

Depends on who you ask.

Hehe well I am asking YOU! LOL!

DH

Bull Fucking Shit. was so much easier to type KRL. ;)

insurance businesses usually went for 1-3 years earnings - gross

yeah i got a wire. yeah, i'm ibill eu. that's all i have to say about it :)

Damn rich insurance mofos! :winkwink:

DH

$120,000 to $150,000.

depends how desperate the owner is

what type of site it is

how the traffic at the moment is being generated

what exactly did it do the past 6 months did it go up month after month or down

anywhere from 3 months for a real desperate guy to 2 years

usally if a guy says "how soon can you close the deal and could you pay all at once" pretty much my offer is 3 - 6 months and if everything checks out I guarantee the cash within 24 hours

3-6 months sounds reasonable, depening on if it's revshare or not. This biz is too unsteady for more, unless it's a killer site with amazing content, which you said it's not.

THANK YOU for your reply :)

3 months? yeah yeah :)

I'll buy it for 60K$ right on the spot. (with some info that is)

I would say 1 year? but it depends on so many factors.

CashCows are seldomly sold.

^^^^^Not a desperation price^^^^^

Background, the owner is not in a rush to sell but would like to sell and put the money into another project.

He's not hard up for money (unfortunately) :winkwink:

DH

good rule of thumb I'm thinking....


with all the other factors mentioned in this thread to be considered...


processor, exclusive content, waxing or waning membership trends...established promotion or not, etc...

I wouldnt want to invest a lot in non-exclusive.

I'd pay break even in 9 months. If the net is $5k/month offer $45k.

then if he takes less then 6 months you should be scared

In this day and age how long is a cash cow going to last?

That is the question anyone in the adult market making big money has to ask him/her self. Are they at the peak of their business and is now the best time to sell so they will secure the best price they will be able to get for their business.

DH