How do you put a value on a paysite?
 

Just interested how you would put a value on a site.

We are looking at possibly buying another established site, that has been running for a few years with a solid customer base (and is successfull in their niche).

We know their turnover and also their net profit. So ballpark figures of how you work out a value, what multiple of the net profit would you be looking at?

Cheers all

Paul

Is it exclusive content?

Yes it is.

It depends on a bit of things, on going content costs and such is important. But I would say atleast from 2 years net to 2 years gross, in that range. If the owners have put in a rather large amount of money in content, then add another year or two.

And is it video / DVD content too?

Oh, and the more inhouse sales, the more the site is worth. If most sales are webmaster based, it's worth a lot less.

One way of lookin' at it is base the value on a year's gross revenues for the site. Some folks will add an additional amount depending on factors such as exclusive content, namebrand recognition of the site, copyright ownership or licensing issues, etc.

I'd also ask a few experienced webmaster pals who's judgement I trust to offer their opinion on what they think the site's worth.

cheers all for comments

A solid history of financials that can be audited are a good start.

From there, look at current revenues along with projections for the upcoming years and months.

Add assets.

Subract liabilities


Most businesses then have a multiplier by which the value is factored with.

That's a simple formula but along the right lines.