Serious buying mode..Major affiliate programs, wanna sell? $$$$ I got the loot..
 

I am looking to purchase an established adult internet affiliate program with a big webmaster base.

If you are serious, hit me up by email at marty at videopass dot com or see me at the show.

Marty

Damn you Marty, can't you just wait til we meet in Vegas and we can figure this out. ;)

I think Epiccash might still be for sale?

Might be a good one to take a look at?

DH

ask Lensman, he may be interested





or not....

Do you have 1.75 million ?

I may consider...

There was a girl selling a program about two weeks ago anyone know if it sold?

I pay 1.6 times EBITA, if it makes sense, and I like it,I will be able to pay you.

Im itching

You should buy www.fatpockets.com they had a crapload of affiliates :cool-smil :cool-smil :cool-smil

Maybe its just late..

what's EBITA ?

Here you go bro

http://www.investopedia.com/terms/e/ebitda.asp

Off the market. It's been sold.

1.6 times annual EBITA or . . . .?

1.6 seems like a low interval, pretty interesting proposition though, usually the interval reflects the growth rate / health of the industry so why such a low interval for an adult program? Seems like you're pretty exact over the 1.6 too...anyway, just curious :)

FF

yes, atypically its annual...

FF

Yes so if the EBITA is 1 million per year, I will consider paying 1.6 million for it.

Through out the years, I found that to be the standard for Adult Internet businesses.(considering no hidden issues)

Gotcha gotcha, thx for the reply...game on.

FF

Wanna buy a nice little PR 4 Advertising domain while you're at it? :)

http://www.AdMediaNetwork.com

Depending on the program, Content has a huge value
as well for exclusive site/nice programs.

Where did you get that number from? That's the 2nd time I've seen you use it.

BTW...EBIDTA = Earnings before interest, depreciation, taxes, and amortization.

Basically its your true net profit, without the stuff your accountant uses to lower that number for tax purposes.

The numbers are pretty close in our industry, all depends on the sites, products sold, etc.

1.4 - 1.8 x Annual is pretty right on.

I thought it was EBIDTA too till I checked it on Yahoo which threw me off.

Well, I would hope so, but some things should not be taken for granted

I got it from my head..lol

Actually, a few folks I know generated that amount based
on total income, shitloads of kick ass content we own, exclusive rights
and other money making programs associated with Boob Dollars.

When I ran businesses for other people the P&L's always said EBIDTA...that was the number my bonuses were calculated from so I knew it well.

Congress changes the depreciation rules all the time though so maybe the D isn't that important anymore.
Sometimes they let you write off a capital expenditure all in the year the purchase was made.....and then they change the rules and make you depreciate it over 5 years....so maybe the current rules don't require a D......beats me, the CPA just tells me where to sign and who to make the checks out to.

Unfortunetely no one really cares about anything but the revenues :)

Unless of course you were to consolidate it all into a movable financial vehicle, break it off in little pieces and sell to wall street....then you could litterally be talking 10-12 EBIDTA, although I would just refer to it as Net Tangible Book Value Per Share.

True to a point.

I have known a few programs that sold based more
on their content then their revenue.

Content is king, every knows that!

Revenue is a plus along with rebills and daily traffic.

Well I hope you can get it.

Lensman said once that an adult business is worth 3-6 months profit and that's it.
As volatile as our business is and as shaky as billing solutions have been lately I'd be very scared to wait 1.6 to 2 years to make my initial investment back....and of course to make it back in that time assumes that you won't lose any webmasters or webmaster traffic and your conversion and retention rates will remain roughly the same after the sale.

Those are VERY BIG assumptions.

:2 cents:

This is true depending on the scenerio.

I guess I am over bidding :)

I have heard those figures before as well.

Thats exactly why most companies don't sell, 3 to 6 months
is jack shit. Mainstream biz go alot longer, it really depends who
you talk to.

My 2cents :cool-as-a

I would like to check in on this thread in 30 days to see if Marty actually buys anyone. Same topic is posted on about 10 boards.

A good way to make yourself seem like a player is to talk like one.

Will he actually buy anyone? We'll see.

:error Gotta care about "kiss ass content" esp if it's exclusive :upsidedow

What's it to you? :angrysoap :pimp

That is exactly why there arn't a lot of transactions (buying and selling) in this business.


It almost doesn't make sense to sell for sellers because buyuers won't pay prime.

Exactly..

I have models, photos and video of girls that many
Big Boob ( natural ) webmasters would only dream of getting.

Our content is gold, 90% of it is EXCLUSIVE!

I am sure he was saying that because he wanted to buy something. 3-6 months would be insane.

Why would anyone sell a profitable business for 6 months profit? Unless they were running from the law.

Yeah its not like a brick and mortar business with lots of physical assets and inventories and contracts that you can put a number on.

But think about it....if you had to start over from scratch tomorrow and build a program up to the level that yours is at now would it cost you 1.75 million?
Hell no.

And would it take you 1.6 to 2 years to do it?
Hell no.

So anyone with the know-how could do it theirselves for a third of the price, and anyone without the know how would go bankrupt shortly after you stepped out of the picture and left them on their own.

That's why most people don't sell and not many people are out there buying.

It is 2 boards for starters and for the "player" comment, I have no reason to act like one.

How long have people been paying $35 for a $2.99 transaction?

Have any major programs changed hands in the last 7 years?

Anytime I see anyone use the term EBITA
I must say I get impressed-


It just tells me there are some REAL businessmen this left in this business.

Thanks Marty you gave me some hope going into this tradeshow that I will meet and talk to some old schoolers who know about business and don't do business with people just because they bought them a drink...

:-))

SORRY, quoted the wrong guy :)

Actually he wasn't...if I remember correctly is was the thread where pichunter was trying to sell for some insane $$ amount. Lens was just putting his 2 cents in.

Like I said this business is very volatile, its not like you're buying general electric or coca cola where you can have a realistic 10 year business plan/outlook.
We don't even know what's going to happen in this business next year.

You're right that it would be insane to sell for 6 months profit, unless you're just ready to retire and don't want to let the business die....but that's why there's not lots of people buying and selling in this business. (Pierre of worldsex being the exception to the rule of course)

Lenny, it's a lot harder to start up then you think.
You will soon find out Grasshopper! :jester

Walking into a profitable business that has so much content
that you can open lots of sites is great!

We have enough video to make 40 - 70 min DVD movies.

Traffic and daily sales in place are a huge factor.


I am not selling anything, but if the right offer comes my way I may consider.

I have been all business for years and years, its just when i came to GFY, things turned around...I started dealing with surfers telling me off for sig placements.

lol

Are you saying you think programs will continue to pay $35 for a $2.99 SU in the future?

Well, speaking for myself, I doubt that I could build back up to 850 affiliates any quicker than that, unless it was the same people that followed me to a new program.

Yes, this business is very volatile.