Why are people selling their sites when they make enough revenue?
 

Hey,

i am actually new in the adult biz but i dont understand why people who have a website with over 100k+ views a month sell their sites for like 5k $ but earn around 1.5k/month?

Where is the sense?

I would never sell my site when I am making over 1k/month. Its not much to live only from that but 1k from nothing is really good..

Please give me reasons why people sell their sites :)

Because they can :)

95% of the sites/networks you see for sale here with revenue (they claim) are bullshit. with fake traffic and stats

Because its all hitbot traffic and faked stats.

If you were working on the site 50 hours per week to make that money, it would be worth selling for $5K :2 cents:

coz banks don't loan money to porn barons!

One the reason is that it's not really worth what they are asking for and people that buy the site learn it the hard way.

Flipping website is a hot industry. You need to be savvy tho. If you plan on buying something. Take your time !

Hmm, why do you need to work 50 hours for a website? You can automatize adding content..

Ok, SEO is hard work but selling a website is in my opinion bad because you just throw everything away..

hmm fake traffic/stats could be a reason

You can easily work 100 hours per week on a website if you want, there's a never-ending list of things you can do :2 cents:

Maybe they have another thing that will make them the same in half the time. Or maybe they build and sell sites got a living, for some people it's boring to maintain but fun to build.
I sold several sites in the past because it would take me 2 weeks to generate 3 months revenue. I basically had a handful of feeder sites to build a 100k / day overnight then spend 2 weeks making the site stable so it no longer relied on my traffic. Then I sold it and repeated.

Why do people sell "Website Traffic"
If you can buy traffic that makes you money why isn't everybody buying it all up?

they're not stupid so sale the sites if they make big $

...is that $1,500/month net? What if their overhead and labor was $2,000/month?

I've never really understood this either, at least when it comes to mainstream sites.

I think there is a commonly accepted rule that a website is worth x months of income (6 months used to be the number, I don't know if it still is).

So if a website makes $1k a month it should find a buyer at $6k.

I don't think it's been mentioned but many people have reasons for wishing to sell up and leave the adult industry even if they are making a profit on their sites.

For example, the UK is shortly to introduce legislation which will essentially make it impossible to run an adult affiliate site from the UK. Expect a lot of UK website owners to be selling their sites in the next few months. The rest have their heads in the sand or are planning to move abroad.

Some use BH to pump up the sites and then sell them before they get penalized/blacklisted.

Many just got penalized by big g. Cam girls is likely the best example of wanting to sell before sales dry up.

Some people may just wanna leave the industry.

Very true..
But also the only place the "Internet" looks for information is the "Interent." But if anyone goes outside the Internet information circles they will discouver very quickly that everyone from Coke Cola to MGM are looking for ways to dump the Internet for more traditional mediums.

Because most of these sites are in rapid decline

Fake stats, huge loss of traffic (that they try to conceal), lots of traffic but no money made/no signups, etc etc...

Because they would rather have $10k right now instead of $1.5k a month for the next five years.... Might not be the best business decision, but maybe they want to invest that money into something that makes them so much more.

because sites with 100k "views" a month don't make anywhere near 1.5k/month

good point

No one can afford me so I ain't sellin'. :D

Site is very general. There are many reasons someone might sell a business. Usually the reason boils down to that it is worth more to the buyer than to the seller.

For most affiliate sites, I recommend generally paying no more than 3 months gross. Unless there is an established brand associated or remarkable levels of real traffic, it is not going to take more than 3 months to duplicate the same value.

For sites with a brand or for membership sites, it is more complex and variable.

i enjoy excrement.....

So manny reasons. Too many to list.

The cost and time to shoot updates and site maintainence alone is a shit ton of work.


Just Dave

Nobody would sell legit site for only 3 months revenue. If not fake/bullshit, maybe they are temporary, when they know it is just a spike in traffic etc.

http://www.mud.com/banner1.png :winkwink:

Part of the issue affecting sale prices is that this isn't seen as a growth industry anymore. It's a cautious market because the general impression is that online adult is in full decline across the board, so any site with other than a long-term upward sales trend will have a hard time convincing buyers.

Why is it that you keep posting that screenshot but fail to mention that it is gross Streamate revenue and you only make a portion of that? It is still a great screenshot, but why be dishonest about it?

Thats gross revenue of how many years?

Oh right... 'collected' is obviously revenue and obviously 1/3 goes to the camgirls
and roughly 1/3 to overhead... it seemed on topic..

Hey Roald! I applied for Oilboy at FreeOnes... they said they had a hard time replacing you! like 2 minutes! hah :thumbsup

This is why the more advanced scammers will say "Need to sell to pay for Cancer treatment" or similar, as they know that buyers have been burned before, they know that buyers have become smarter and realized that a good profitable site won't normally be sold cheap, so they add in the emergency in an attempt to balance the flawed logic as to why such a good site is actually for sale in the first place. :2 cents:

I would that this is a VERY small part of the issue, because it is not seen to decline that rapidly. Meaning if you earn $1000 this month you do not expect to earn 800 next and 600 the one afterwards. Decline could be maybe 1000 > 980 > 960 and even that is too fast. 1000>990>980 maybe. So declining industry does not account too much into selling for as low as 3 month revenue.

Nobody would sell genuine site for 3 months revenue, nobody. That is a fact. it would simply be ridiculously stupid to do so.

there is a significant difference between 1/3 and 30% in $800k+ amount :)

"a VERY small part of the issue"?

The industry's decline (real or perceived) is *exactly* the reason garden-variety sites aren't being bought and sold for the same prices they were years ago. First, in online adult's heyday you had speculators, investors, get-rich-quick'ers, etc, all over the place who were happy to plunk down money sometimes without doing their due diligence. Those guys were a dime a dozen, they've moved elsewhere now.

Second, there's now an overall uncertainty whether certain business models will even remain viable, and for how long. That's debatable, but the result is people are real conservative about their long-term estimates.

Third, on average the individual webmasters are making less money and there are fewer of them, so less buyers and less $$ in circulation.

Fourth, the affiliate model and market is shrinking and probably dying a slow death.

The 3 month thing was what Amelia said, not me. And I think she was more meaning that past a certain price-point you might as well develop your own site(s), at least when it comes to generic affiliate ones. As she says, established brands and/or good traffic is a different story.

If someone's site TRULY makes 1.5k/month they're probably asking for more than 5k, that was just something the OP mentioned offhand rather than a concrete example.

You state the obvious facts, no need to do that.

I commented about 3 month (or 1,5K - 5K) thing and that in that regard declining industry plays VERY small part. Let me explain in plain examples:

a) STABLE industry. You earn $1000 1st month, $1000 2nd month, $1000 3d month. Stupid to sell for 3 months income if site is genuine.

b) DECLINING industry. You earn $1000 1st month, $990 2nd month, $1980 3d month. Stupid to sell for 3 months income if site is genuine. Almost the same level of stupidity.

That's what I meant when saying that declining industry plays VERY little part in evaluations compared to stable industry because it is not declining that fast.
3 months of income or 1.5K/5K - declining or stable, nobody would sell for that.

So when you see a site selling for 3 months of income, or 1.5K site selling for only 5K - you know this is not a genuine deal. Declining industry or not.

But I'm not speaking about direct proportions like that. When the industry climate is grim and it's a buyer's market, sellers are going to get lowballed. And sometimes severely, beyond what the actual numbers say - just like the opposite happens (fools hugely overpaying) when there's a bubble.

But the OP's 1.5k for 5k was just something they made up (unless I missed a different thread) as a random example. For a well-branded site still making 1.5k/month you could probably get more, as I said.

Often when we see sites selling for that low it's because either the person wants to get out of adult in a hurry (it happens) or because the stats were way inflated (also happens), if that's what you're implying I agree with you.

It's a sliding scale, at $100,000pm gross revenue Streamate pays 40% - very tasty! :winkwink:

800000*.3= 240000. 240000*.66 pocket (after overhead) = $160,000 per year.

3 to 4 mil sale price is 230 to 308 TIMES monthly earnings. So at current rate, ROI would be a min. of 19 years. The internet as we know it will not exist in 10 years, let alone 19.

:2 cents::2 cents: this

Even if it is legit traffic and revenue, you can't expect it to last forever.

Also, maybe webmaster is ashamed of doing porn and wants to do something more productive for society.

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This is the #1 reason that I sell sites. Sure I'd love to hold on to everything that is making money but if I can get capital quickly by selling a site and put that money towards 2 or 3 other projects that will make similar money in due time then I'm all over it.

That is good... so you are at 35% instead of 30%. You said yourself overhead is 1/3 and I could only assume that was going to purchased traffic. What else could overhead be? Paying off loans to people?

Anyway, I remember when you bought the site... everyone said you were crazy. It placed #1 on google very shortly after it was a white label. Now it got smacked down by google so that is lost. So you did well, but this thread is about why do people sell sites that make money.

Answer: Don't know how long the money will last

That's some great text bro. Do you think everyone is fucking stupid here?

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