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I'm looking to try and price my site for sale.. I know there are a ton of factors in determining a price.
What is the basic formula, is there one?
I know what the site was making per click.. and how many advertisers were paying that much.
Trying to discover whether the site would be of interest to one of these advertisers.. and how long they'd pay in advance before it's profitable: ie. If the site generates $5000 in sales a month, would they pay $20k, 50k, 100k?
What are the factors I should consider?
Also it depends on where the revenue is coming from. Is it coming from sponsors, visitors who purchase from your site or those who are paying you per click who could pull out of their campaign at a moment's notice?
Depending on many factors, the value could be from 1 month's profit to 1 year's profit for most sites ( your mileage may vary).
I think if site is making money and there are no imminent threats to that industry, you should get anywhere between 10 to 20 months of your monthly income.
Can I assume a 1% conversion rate on those 2000 users?
The companies that I'd like to sell the site too sell products around $20 bucks each.
So 2000 users x 1% conversion = 20 purchases x $20 product = $400/day?
Over 3000 pages listed in Google and Yahoo.
Any better idea of the price range now?
$12,0000 x 5 upto 10 would price the business value between $60000 and $120000
Real basic but probably not a bad indicator of worth, unless there is some good intellectual property involved then hey.........skies the limit
That simply is not the case at all. Having bought and sold many sites (some for large amounts), I can tell you that in the Internet world, one gets much less than the offline world. This is due to many factors, not the least of which is the youth of the web and the constant change in competition, search engines, and technology.
eljefe is right of course. The source of traffic and actual "value" of your content is quite important. I have "one page wonders" that make thousands per month. If they drop in the search engines, they are worthless.
The source of traffic for the site is all search engines.
Around 2000 pages listed in Google and lots more in other search engines.
The site's subject will always be around.
I have log files for the last year.. and the site has grown gradually and consistently during that time.
I'm not selling any products.. but was running AdSense and generating about 1/4 of the "inventory sales" figure you mentioned(per month).
Does this bring a price range into better focus? Thanks for the input.
If I was a buyer I would stipulate that the site must remain getting high SE traffic for X amount of months and that you as the seller would be responsible for it.
I'd like to check out some sites and what they have sold for.
I checked out a few ''websites for sale sites'' and some of these sites seem pretty dang expensive for how little hold they have on their market and how new the sites are.
Anyone know of a reputable ''websites for sale'' site?
Nah, i buy much more than sell. One popular way as of late is to pay installments partly based on future earnings or traffic.
Buy and sell a few dozen sites and you will quickly see that there are many, many variables - the biggest probably being the domain name/brand and whether there is proprietary/copywrited content or technology. In other words, a business that cannot be easily replicated without great expense.
I think the next most important thing was to consider that you will almost certainly get a better price for your business/website if you actively seek out potential buyers rather than waiting for them to come to you. For example, in an ideal world you would be able to attract a potential buyer operating in a complimentary market (this gives more opportunites for synergies/cross sells to be exploited), also in an ideal world you would attract more than one of these parties to the table to maximise the price.
At the end of the day, your business/website needs to be pro-actively sold just like any other product in order to get the best price for the seller!
My email is basically.. here's my basic traffic.. If you're interested, tell me what you think its worth.
Now I'm waiting for those responses and am going to give a much more specific breakdown of the traffic, growth patterns and sustainability of the site.
Business buffs.. is asking what it's worth a bad strategy/idea?
I have a hard time determining if strategy is even necessary.. since in a market with more than one buyer, bidding will set the appropriate price... and if not, you don't sell.
....The highest sales value would be from repeat visitors making up most of the traffic.....
I would think that it would be the other way around as repeat visitors might not be very willing to buy what you sell every other week, but someone that shows up for the first time or every few months might be more receptive.
Now, I can see how loyal users might be good on some limited cases, but I would rather have a constant turnover.
Our site however has been only around for about 18 months so I told him to contact me again by next year.
My advise! If you don't need the cash don't sell it and develop it further. We have now around 11000 visitors per day with around 20% repeat visitors and our revenues are up due to the fact that we launched Asian content pages with some top serps.
I did sold around 9 websites from 1995 - 2003 but if you have a unique site then sell it to the large guys with the cash in the pockets. Forget all those guys that are scanning the web for some cheap deals and a few month later they sell it off on ebay or some other auction sites.
BTW: I never sold a website below 100,000 USD and if I ever sell my current website it will be a jackpot and I am happy to finally retire from the internet.
Until then I just keep adsense, affiliates commission every month and can happy survice on it.