Estimating Sale Price on Existing Site

[azanmi]

Hey all I have a developed site with 100 or so unique pages of content in the home improvement niche. It is generating about $500/mo ($100 adsense/$400 lead sales) and is only a year old. Organically it has grown from 0 to 1000pv per day and seems to be on a clip to continue. the site is being referenced all over on trade sites and in online magazine articles. There are actually 350 different keyword terms per day driving search traffic to the site! All of the terms are 100% relevant to the niche.

The question is: do I sell it now while its growing and gaining authority (to get to the next level I'll have to dump some more money into content and link building) and if so what kind of multiple do you think I could get? If not, I could hold and put the effort into getting to that next phase. It's only been a year and the site now pretty much owns the niche.

Thanks in advance for your thoughts
Matt

 

[Biggie]

don't know why you'd want to sell a $500 a month income stream, unless overhead, time or personal matters are involved.


the best time to sell any income, is while it's consistent over a fixed period.

you don't want to sell on the rise, nor on the decline.


imo...

 

[quamism]

I could give you a more accurate appraisal if I had access to more detailed information. Plus, you haven't mentioned what your expenses are for content creation and that could impact the valuation substantially. Without seeing details on traffic, revenue, and workload I would estimate you could get a sale for between 14x - 24x the 6 months net earnings average. So based on your numbers you would be looking at $7,000 - $12,000. Feel free to hit me up if you have any other questions.

 

[azanmi]

Thanks for the input. My monthly content and marketing expenses are $25-$30 (couple articles, couple Fiverr's) and the trailing 30 days earnings are $104 adsense and $435 Lead Sales earnings. Traffic is up to about 1300 PV per day. The niche site is only a year old and I think it could realistically pull $2500-$3000 at market cap for the best terms. I am building out a few more similar sites hoping for the same success in the coming year. So far all the google updates have had zero negative impact, in fact I've seen a positive uptick about 3 weeks after every update! Google Webmaster tools shows top 10 organic rank for 310 terms but only 150 of those are generating consistant traffic (while all are relevant, many are very long tail)

 

[quamism]

Thanks for the input. My monthly content and marketing expenses are $25-$30 (couple articles, couple Fiverr's) and the trailing 30 days earnings are $104 adsense and $435 Lead Sales earnings. Traffic is up to about 1300 PV per day. The niche site is only a year old and I think it could realistically pull $2500-$3000 at market cap for the best terms. I am building out a few more similar sites hoping for the same success in the coming year. So far all the google updates have had zero negative impact, in fact I've seen a positive uptick about 3 weeks after every update! Google Webmaster tools shows top 10 organic rank for 310 terms but only 150 of those are generating consistant traffic (while all are relevant, many are very long tail)

Happy to help and give my opinion. Good luck on maximizing the revenue and taking the site to the next level.