Fair Price for a Website

YouDontKnowMe

YouDontKnowMe

Loki
Apr 18, 2010
520
8
0
USA
Ok, guys I have a question as I've never dealt with buying/selling websites before.

Suppose a website is earning $100 of PROFIT per day. Just assume the profits have been proven, legit, and accurate. Also, these earnings are passive (minimal maintenance work required). And by the looks of it, this website won't be slowing down any time soon.

What's a fair sale price for this website?

Any feedback would be appreciated. Thanks.
 


Obviously, there's a whole load of variables to look at, but my starting point is I'll pay approximately 10 months of proven profit.

So if you're looking at $100 per day, $3k per month - I would start my thinking at $30,000.

This would go up or down depending on:

1) Where is income generated from? (My price guide is assuming most traffic comes from organic placement - PPC puts you in a vulnerable position - and personally, I'd pay a lot less)

2) How well is site built / tech

3) Is content good / copied / scraped - does it attract natural links

4) Other assets such as: community, incoming UGC, email lists etc

5) Ownership of any particularly clever IP/code/algos - or is it just a whacked together Joomla site?

6) Any other assets..

7) How much can I hammer them down.
 
10-20 times proven monthly profit..

If it's something thats obviously good & legit (eg. high PR, large forum, lots of articles, professional design) then closer to 20. If it's a 1 page sales page that links to a clickbank product, closer to 10.
 
As a BUYER, my #1 concern would be how consistent is the revenue over the last 6 months. If the revenue is consistent and is rising then 10x - 14x of the monthly revenue is perfectly fine to be paid.
 
Thanks for the replies guys.

@ Red Virus - You meant PROFIT and not REVENUE right? Because consistent revenue doesn't mean anything without any type of expenditure data. Hence, why I am concerned with profit (total revenue - costs).
 
There are many variables, if your site has been earning $100 profit a day for 3 years it would be worth a shit load more than one that has been doing it for 3 months.

Your site is basically worth how much someone is willing to pay for it, I have seen sites making $100 day (pure profit) sale for 50k or a bit more. Just depends on the site, like in some of the treads above many variables.
 
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