It's a .com domain that exists to promote one single affiliate program. It's been active for about three years and averages $1000 a month profit over that period.
Traffic is and always has been low, depends largely on seo, and the domainname itself does not have much value to most people.
The domain will continue to generate revenue for quite a while, but this wil steadily become less if no seo efforts are put into it.
It has no directory listings to speak of.
I sold for $20.000.
Too cheap or good price?
PS..The money making concept of the domain is repeatable for us on another domain.
[edited by: rcjordan at 2:20 pm (utc) on Feb. 11, 2003]
[edit reason] no buy/sell discussion, please -see charter [/edit]
Also, what's on top today seo wise may not be tomorrow or next google update..I've no way of telling that particulary this domain will continue to provide the same revenue.
It is unknown how many of the existing 'old'customers generate the current revenue. As some may be three years old I bet many are not active anymore.
RC, you think an affiliate account should sell at the same prices as regular bricks&mortar companies? 36x sounds almost like an 'offline' price to me.
If I reverse the situation, would you consider buying an affiliate account for 20x monthly average income, providing all else is okay and the average has a solid basis (no spikes in statistics)?
Being an seo myself, I know I wouldn't. I'd expect the largest value to be in new customers most of all, so why buy old customers. Agreed there may be a few good repeat customers among them, but nonetheless.
Not being an seo I'm pretty sure I wouldn't for the same reasons, this time I'd know I probably can't get the new customers in.
I think it's never a safe investment if you judge the value of an affiliate account by just past revenue.
Depends on the revenue history. If the site has a consistent record of income production, it should get credit for that. I've turned down 100 X avg monthly income because I knew the site was in for the long haul.
Industry trends in the site's category would obviously have to be considered, also whether or not the individual site was still on the uptick, had peaked, or had started to head down. But, yes, 24 months earnings should be presented as something of a track record.
