$8500/month revenue - How much should it sell for?
 

I have a buddy that is selling a site that makes $8500/month. How much do you think he should be asking. I am not going to provide the URL... he just needs to figure out a fair asking price.

wonder who that could be.

Depends on a number of factors.

- Age of site/domain?
- Recurring revenue, like membership site, or affiliate?
- Traffic and referrals?

9-12 months revenue is a fair gauge. However, if the revenue is recurring, and you can show a track record of it (longer than a few months) you may be able to push for 12-18 months.

In the end it will come down to what he is willing to let it go for, and the other person will buy it for. You will have plenty of people who will low ball, however, I have found that as long as you are not desperate. You will eventually get your asking price. It may take 2-3 months, but you'll get it.

:2 cents:

33.3 months revenue

Depends on so many things, the nature of the traffic and how long its expected those revenues will hold. For example, if that's all high retention traffic like a tube or mgp/tgp site, it's probably higher than a site that depends on SEO where it could drop overnight.
WG

i think this is a stupid question...you want some opinion about that shit and we don't know practically nothing, give more details

agreed :2 cents:

Many variables which are dependant upon the site type, how the revenue is achieved, whether adult or mainstream and so on.

:thumbsup

It's not a stupid question... it is a general question. If you want to be pissy... why did you even post? My opinion is that noone will pay more than 5-6 months revenue for any site that isn't a premium domain. :2 cents: I just wanted to see what others would say.

It is an adult site... it relies on bookmarkers and seo. I am sure he can provide complete stats. He doesn't buy traffic. It's a review site. He has done a great job at building it to what it is... I think he just had false expectations about what he could sell it for and could use some input...

you are 100% right

I shall endorse this post :thumbsup

i would say 6 months revenue, if its adult, mainstream a totally different game

I wouldn't sell any site for 6 month revenue. Minimum would be 10 months to a year, especially if it's an established site that has been around awhile.

good luck with that domain :thumbsup

I agree with you. If it makes 8.5k/month, I think he'd be lucky to get 70k for it and more than likely ~40k especially since it's a review site that relies heavily on SE traffic and as others have said, that can drop overnight. A paysite with a consistent recurring membership history would be worth much more (~12 months of revenue), IMO.

Check out this site: http://ebizvaluations.com/
It might give your buddy an idea of the value.

Exactly, I've already bought a few MGPs sofar, and always considered 24-36 months revenue as a fair price

want to buy a network of tgps? :D

Sounds to me personally like if he is making the $8500 monthly .. he should just be happy with it .. Don't sell it ..keep working it and continue to make the money as long as possible .. stocking piling what ever he can into savings/investments .. things can always turn to shit.. Usually once you sell a good little worker like that that it is tough to make up for it ..

With the rapid decline in traffic from MGPs, you'd be willing to give 2-3 years of revenue in advance? :upsidedow

I tend to think along the lines of holding it as well. If he doesn't have time it may even be worth hiring someone to run things while he still makes a tidy profit monthly.

Of course he may just have expectations of a big pay day selling it.

so true:upsidedow

A review site would probably keep going for a while even if you do nothing except pay the monthly hosting bill. Could end up netting more in the long run by ignoring it and letting it go stale, rather than sell it outright. :2 cents:

Nation shoot me an email. If I don't like it. I may know someone who does.

I would say he will get 40-80k for it

sorry but I highly doubt you paid anyone 36mo net

I agree, keep this baby if it is making money. Just like in the stock market...sell your worst performing stocks first. $8500 a month is nice money. :pimp

:1orglaugh:1orglaugh

midrange xxx.xxx

:2 cents:

So, you in the market to buy?

it's about this site here: fucking-around-and-business-discussion/909340-selling-foxyreviews-com.html

why on Earth would anyone pay midrange $xxx.xxx for it if you can have it build for $10k

$20k if you don't want to lift a finger and have someone else do it for you.

Makes sense.... revenue is $8,500 a month but he's selling... unless he found God or something... why?

6-12 months of revenue. Even if the traffic is steady i will not sell that candy :)

You are the dumbass that suggested it.

much as you can

I got it from the other thread, idiot.

Scottybuzz named that price. I was being sarcastic here.

alot of people say 'it makes $... a month'. That doesnt mean anything, it's about the profit. Thats the most important thing to know. So whats the profit?

Obviously not $8,000.. because who the hell would sell anything making 8,000 a month

Exactly right. :thumbsup :thumbsup

Why not? I did last year to free up some time for larger projects. :2 cents:

Depending on the site, I'd aim for 10 months NET as a basic rule.

bingo

let me know the NET profit...then lets work backwards from there...

and dont tell me it COULD be worth this much more or THAT much more IF you did this or IF you did that...

you didnt do that...

and dont tell me your price is higher because if I buy it I CAN do this and I CAN do that, or I COULD to this or THAT...why would I pay for the work I would do?...

let me know your NET
and then lets talk...

Nice....My site is a little bit over $200K

Next time you want to sell a site that profits $5,000 a month for $5,000 hit me up :thumbsup

EBITDA is a standard way of valuating one's business. It stands for earnings before interest, taxes, depreciation, and amortization.

In my opinion a multiple of 3 (3 x yearly earnings) is a typical evaluation. There are factors that come into play such as cash flow and risk that can either increase or decrease that multiple.

totally irrelevant. its about traffic and where the traffic is from. everyone is under some bizarre assumption that there aren;t a variety of scenarios where traffic can severely decline overnight.

valuation formulas mean absolutely nothing.

24-36 months? Bullshit

Ok, I have some sites to sell you :upsidedow