So if someone wanted to sell an Affiliate program for $2.5 million
 

If a company wanted to sell their adult Affiliate program and lets say that program was generating $100,000 per month in net profits, and their asking price was 2.5 Million, which translates to 24 months net profit, which I think would be fair considering the assets needed to run a program that is generating $100,000 per month in NET PROFITS...

Would there be any buyers out there?

The reason I ask is I have seen several programs just close down instead of the owners even attempting to sell the program, which begs the question, would there be any buyers out there with that kind of financial backing that would invest 1 or 2 million dollars to purchase a thriving program? Or build their own from scratch?

im sure there are ppl here who could cough up 2 mln but most of them run big programs themselves and wouldnt be interested imho... then again there are lotsa ppl out there who burn 5mln a year just on high risk ventures so theres a market for sure...

from a webmaster pov : im proud to be at this point with this nett profit with dutchteencash and wouldnt wanna buy a program for whatever money

No way in hell. Only a sucker would pay this much

How would you know? Your Adultie.com has been in the works since you joined the site :1orglaugh the anticipation is killing us.

It would be a worthy investment for someone in that financial league; providing all the documentation is there and the sites/memberships/affiliates have the same promising future.

Well, 2 years X Net Profits as a measure of a adult online business's worth could be disputed. It could be 1 year X Net profits, but that would still be 1.2 Million.

I think the price is reasonable - but I don't think there are too many programs that are netting 100k a month that are closing down.

Funny thing is, I have matched up buyers and sellers of programs for a little while now.

People do buy them!

As volitile as adult programs seem to be looks like an idiots deal to me.

A lot of red tape to consider other than the affiliate program itself, from the sites, content rights, technology side.. If a company had 2.5 million to spend then they really wouldnt need to buy another persons established system, I wouldnt think.

no way. It is not just about the affiliation program but about the sites its promote. What is the total revenue and the profitability v. menaging more sites. also , getting back 2.5 million in two years is 2 mich in this indusrty.

So , if the buyer does not have a strategic agenda , there is not deal with these numbers.

believe me ppl who can burn 1-2 mln arent interested in adult

not true !

sadfully it is, my best buddy deals with these ppl workin at the biggest private bank in the world, talked to him bout this many times, im not talkin bout joe average who has 1 mln, but ppl who burn 5 mln a month on russian private banks

Interesting. However, $400,000 can build a very strong set of sites and all the trafffic they would need to build it into a 100k net a month program in a years time.

money is nice, but it takes a lot more, every webm knows that plus i seriously doubt 400k builds a 100k nett/month program in 1 yr

I would rather spend the $2.5M on building a new affiliate program.

exactly thats the true spirit :thumbsup

most of them not, I agree. There are exceptions. especialy people who grown within tha adult industry.

Not anyone with $400,000 can start a affiliate program and make it a success. You have to have the know how if you want to create a program that nets $100,000 per month. But the flip side of that is if you have $400K to start a program, you are probably no dummie when it comes to starting a business.

So the question really is, would there be anyone out there with 1-2 million to invest in a program that would prefer that purchasing an already succefull program, as oppose to investing $200,000 and building their own program from scratch and saving a couple of million.

the time factor should be taken into consideration. 2.5 years for returning your investment is way too much in this indusrty.

No... the return time for the investment is to great since the sites may be crap in that length of time. Also, no one leaves a $100,000 profit per month program... they leave programs with 5,000 a month in profit and $250,000 gross... or worse...

there are maybe 5 ppl within the adult industry who can burn 5 mln a month, there are 100s who can outside. I didnt see anyone in the adult biz on Forbes lately...

Everyone talks about how volatile this industry is, and that is true, but one of the major reasons for the volitaility is the nature of the internet, so any purely internet business, wether adult or not, will always have a higher degree of volatility.

Of course due to the particular nature of adult, that degree of volatility is slightly raised, but MAX CASH, ARS, CE, and some of the other dinosaurs in the industry have risen through the volatility, and unless some ground breaking regulation is passed that fundemantally changes the way adult does business on the internet, there will always be companies around that can rise above the volatility.

Ok, I'll stop saying volatility now. :)

dont wanna be an ahole but i just clicked sites and got this

Warning: Smarty error: unable to read resource: "sites.tpl" in /usr/home/metaformx/nats/Smarty-2.6.7/libs/Smarty.class.php on line 1088

and on signup

Warning: Smarty error: unable to read resource: "signup_adv0.tpl" in /usr/home/metaformx/nats/Smarty-2.6.7/libs/Smarty.class.php on line 1088

Warning: Smarty error: unable to read resource: "signup_adv0.tpl" in /usr/home/metaformx/nats/Smarty-2.6.7/libs/Smarty.class.php on line 1088

I disagree. Many people in adult have aspirations of mainstream success, especially those who have made money in this business and are looking to diversify.

If you had a chance to take 2 years worth of your money upfront, and invest it in a mainstream project (there are never a shortage of those) many people would consider it.

Right, the signup and sites are down for a reason :)

We are doing in house testing, so it's not ready for release untill it's maximized. Just a few more days.

I would build it myself without question and might be doing just that. :winkwink: Why buy someone elses problems when you can create your own? haha

Also, I would not invest it into paysites either. Adult yes, paysites, no.

Didn't Marc De sell a portion of ARS to another company a few years ago? Many assume he is still the main owner of ARS, but I was under the impression that his role is more in the area of a director. If that is correct, I wonder how much ARS was sold for? I could be totally off though, maybe someone can correct me.

No one would buy a program
But you would be able to sell the paysites, with active members and rebills

k got that... a few lines on a blank page would be nicer imho...

how bout hire a headhunter to coax super affiliates into pushing your program.

2 years is waay to much in this business (processing!!) maybbe 6 monthsd and you could find a large program to buy you out.

For $2 million online, you can double your money at least every 12 months. Why waste the money buying an affiliate program that will make you less than starting up a new one?

... if you could do that, I'd give you half a mil and make you a 50% partner.

Your right, we will do that. Thanks for the input. :)

Shir anyone can try sell anything, but it might be a tough job finding a buyer. best bet is to do payments or something.

this is a great thread :thumbsup

learned a lot

The price isn't bad from a multiples standpoint. BUT, in this industry, I wouldn't consider doing it. There are too many things that could go wrong in two years to create a loss instead of a break even.

I could do it... Its ashame I dont know you enough to do any kind of partnership... But this thread made me realise what a retard I was for not spending more money on developping new sites when I can get my money back in a month or two...