Just been offered a network of sites... what would you value them at?
 

The network (of many sites) made a $524k NET PROFIT (after all taxes) each year for the last 2 years. Any idea on the value? Just based on this profit and not content etc of sites.

50 bucks

Tried that, they said no ;)

it's worth 8 times net income less liabilities and assets

damn, lots of money but if you can pay it off within a few years damn nice deal. How many sites are included? How long have they been around? Will you be getting the rebills? I guess if those are paysites anyways.

stability is a huge factor in such a calculation
paysites go for much more than go spammy se projects for example simply because there is less risk involed ;)
Sounds like this could turn into a profitable deal... something I wouldn't mind either hehe

Interesting I wonder who it is hope it's not studiocash:)

8 times income in one year?

NET income
I am busy trying to broker a few companies and know of major VC's that are using this calculation

:1orglaugh

I think it is.

interesting

You think they made that much in net income?
No, I dont think its them.

No BS
I am being 100% truthful with you

net income: Definition: [n] the excess of revenues over outlays in a given period of time (including depreciation and other non-cash expenses)

8x net income during what time period?

I know thats why it is very interesting! :pimp

Depends... are the sites 2257 compliant? If not, they won't be worth anything next year. If they are, 1-2 years income, I would think.

There is a lot more to KB than meets the eye
When I make one of these deals happen

I'll be the most popular person in the adult web.
AGAIN.

:-))

1 year seems to be the norm

this is not brick and mortar.. considering the current instable online bus. environment and the asset's history (no way its been doing this volume stable
for 5 years.. probably didnt even exist 5 years ago) you can go 2-3 max.

Pawnbroker: Man, that watch is so hot, its smokin'.
Louis Winthorpe III: Hot? Do you mean to imply stolen?
Pawnbroker: I'll give you fifty bucks for it.
Louis Winthorpe III: Fifty bucks? No, no, no. This is a Rouchefoucauld. The finest water-resistant watch in the world. Singularly unique, sculptured in design, hand-crafted in Switzerland and water resistant to three atmospheres. This is *the* sports watch of the '80s. Six thousand, nine hundred and fifty five dollars retail!
Pawnbroker: You got a receipt?
Louis Winthorpe III: It tells time simultaneously in Monte Carlo, Beverley Hills, London, Paris, Rome and Gstaad.
Pawnbroker: In Philadelphia it's worth 50 bucks.

hahaha, good call.

Darren, if it's MetaformX who's selling the sites, ask for a lot more than screenshots as proof of income. :winkwink: