What's it worth?

[theapprentice]

I saw someone advertising a site making $10 or so per day. They didn't give specifics but said they were taking bids over $5,000.00 but to hurry or it would go higher.

Surprisingly people were responding for details.

How is a site making $10.00/day garnering that much interest with a bid minimum of $5k???

I can't imagine my site making $200/day off AdSense would garner interest at $100k minimum bid. Is that for real?

 

[GT Web]

one has to look at many things (for example domain name, traffic, subject area, length of time the site has been online, traffic sources, etc) before making an offer

some websites sell for 6 months revenue, some for 6 years, it varies a ton depending on the factors listed above and other ones I didnt mention

 

[theapprentice]

one has to look at many things (for example domain name, traffic, subject area, length of time the site has been online, traffic sources, etc) before making an offer

some websites sell for 6 months revenue, some for 6 years, it varies a ton depending on the factors listed above and other ones I didnt mention

Thanks for the insight. What do you find to be the average (6mo?, 8mo?, etc)?

 

[GT Web]

usually 9 months to 1 year is a good starting point...for sites with at least a brief history

 

[Kevin]

GT makes several good points.

Let me add some additional input.

The bottom line with value for a website is what it is worth to you.

When you have ALL of the information that you need in front of you, ask yourself if the website is worth the asking price.

Another thing to consider with respect to revenue is the source and sustainability of the revenue.

Revenue can drop precipitously if the source was a temporary ad campaign that brought in heavy traffic and resultant strong sales.

Just make sure that you are extremely careful and thorough with your analysis before making a purchase.

 

[theapprentice]

GT and Kevin,

Good advice from both of you.

It is quite often that those selling websites are selling at what it's worth to THEM with little regard to whether or not it's possible for others to sustain at that price... so I definitely agree on the thinking about the value to YOU part.

In your experiences, what sources of revenue seem to be the most prized among those not seeking to actually take on a brick and mortar business that could come with some sites? (adsense, aff, lead generation, etc)

 

[Biggie]

a domain or website making $10 a day consistently, is worth the investment of $5k

a lot of people will tell you, they only pay 1yrs. revenue for domains, but those offers are rarely accepted...... unless someone is looking for a quick flip.

they want you to offer sellers the 1 yr. revenue, and then they come behind you and get the domain at 18 > 24 months revenue.

now they own it!

i recently paid more than 2 yrs rev for a domain making only $1.** a day, but it has very good OV score and is a one worder!

 

[nitronet]

one has to look at many things (for example domain name, traffic, subject area, length of time the site has been online, traffic sources, etc) before making an offer

some websites sell for 6 months revenue, some for 6 years, it varies a ton depending on the factors listed above and other ones I didnt mention

The only time I could understand somebody paying 6 years for an income domain is by screwing up and bidding too high on a drop.

Intentionally pay 6 years income, I don't think so.

I'm not talking about a good generic word or the like that has other value but maybe not much income.

Do you have an example?

 

[HHH]

As mentioned above, there are many factors to consider. My comments below are meant for sites with a neutral domain name (read: not much value in the name itself) and an average level of unique content etc.

Ad sites (sites earning income primarily off ads) generally sell for 6 to 12 months income. You can expect around 6 months if the site does not have a long track record. Around 12 months if the site has been around a while. On the whole, expect 10 months.

ECom sites can expect around the same as Ad sites. One of the big differences being the suppliers. Will it be easy for the new owner to be a dealer of the product?

The bigger sales will often have something unique. Maybe you have your own product that you manufacturer or a unique service or software. These variables can increase a sites value tremendously as you are offering something more tangible than just good search engine rankings. If you have strong trademarks or patents that can help your value also.

The problem with selling a site making $200 per day is finding a buyer. There are going to be many who will be interested in the site, but few who can come up with the funds for a web site at that level.

 

[Steen]

one has to look at many things (for example domain name, traffic, subject area, length of time the site has been online, traffic sources, etc) before making an offer

some websites sell for 6 months revenue, some for 6 years, it varies a ton depending on the factors listed above and other ones I didnt mention

well said

 

[GT Web]

The bigger sales will often have something unique. Maybe you have your own product that you manufacturer or a unique service or software. These variables can increase a sites value tremendously as you are offering something more tangible than just good search engine rankings. If you have strong trademarks or patents that can help your value also.

The problem with selling a site making $200 per day is finding a buyer. There are going to be many who will be interested in the site, but few who can come up with the funds for a web site at that level.

very true
very well said

 

[theapprentice]

The problem with selling a site making $200 per day is finding a buyer. There are going to be many who will be interested in the site, but few who can come up with the funds for a web site at that level.

Excellent post in total. That said, how do domains get sold that make 1k, 5k or more per day?

Also, when is the revenue data taken from that's used to forecast this stuff? If my site made 6k last month (but only 4k the previous) would a 6 month earnings buyer be paying me 36k?

What do you guys feel the majority of people on this particular board are after (those that buy dev'd sites)? Like for instance you may have lots of bonuses like a 2,000 person mailing list but they don't care because it's not going to benefit their intended purpose. So, the answer may be a domain with tons of type-in traffic and little content or a site that does well in all search engines, etc. What's the hottest?

 

[MJM]

Here is a PM I recently received:

Monthly income - $100-$120
Pay via escrow (buyer pay free)
My price is $75k (Neg).

Hyphenated/below par domain name, no content, basically a banner farm. Go figure, only 60+ years X's monthly revenue. What a steal.

 

[theapprentice]

Wow, now that I see some of the prices people are willing to pay... It makes me really want to go unload some stuff (mind you it's pretty decent). It's just scary posting because it's like a window to your revenue. Like, hey: here's my site, all the development we did, stats, and earnings. So uhh, if you don't want to buy it... at least you can copy what we did and now we have a new competitor.

Gamble ya gotta take i suppose.

 

[HHH]

Also, when is the revenue data taken from that's used to forecast this stuff? If my site made 6k last month (but only 4k the previous) would a 6 month earnings buyer be paying me 36k?

You would average the two months. With only a 2 month track record, you should not expect top dollar.

Like, hey: here's my site, all the development we did, stats, and earnings. So uhh, if you don't want to buy it... at least you can copy what we did and now we have a new competitor.

LOL - My feelings exactly, but if you want to sell a site you will have to expose yourself at some point.

 

[theapprentice]

You would average the two months. With only a 2 month track record, you should not expect top dollar.

So what do the more experienced members feel is a decent amount of time for a trackrecord? What makes you guys feel pretty comfortable?

LOL - My feelings exactly, but if you want to sell a site you will have to expose yourself at some point.

True indeed. Man, now I know (1/billionth) how google founders felt pre-IPO having to start dissemenating all their private info.

 

[mike031]

every domain, site and online business is unique and virtually one of a kind... it's all about finding the perfect match (the right buyer for whatever it is you are offering, at the right place, at the right time) and making the most out of your pride and joy... the key to ultimate success is to take your time.. never rush into a sale... negotiate well, and just go with your gut... if you are getting an irresistible offer, go for it... if you feel that you are getting a fair deal, but could do better.. you should most likely, pass?! it all comes down to whether you want to sell or not... once you got your mind made up, you will sell for a certain price and will be happy once a deal is finalized.... you just have to be confident and hold your ground, so what if you dont sell today... maybe a week or month from now you will at your desired price... like i said, timing is everything in this business but everybodys situations varies... if you need $$$ asap, you must be flexible of course... if you are in no rush, sit back and relax!

 

[A D]

A domain that makes $200 a day is certainly worth 100k, probably much more.

-=DCG=-

 

[HHH]

A domain that makes $200 a day is certainly worth 100k, probably much more

But a web site might not be worth 1/3 of that amount.

 

[namedropper]

Frankly, I don't understand why someone would agree to sell for 6 months to one year income. WTF, just hold onto it for 7 months to 13 months and you make more money AND keep it (to make yet more money) if those money amounts are legit. You either have to be hard up for cash, faking the numbers or stupid to sell that low.

Once you buy a name, you own it and its revenue potential forever... that has to be worth bare minimum several years worth of income.