Selling sites Earning only from Adwords

Anyone done it? What price did you get?

[SlyOldDog]

I've seen enormous threads on the value of a site in SERPs earning money from Adsense or affiliation. The consensus there was that a site is worth 8 months to 24 months earnings. That makes sense to me. Adsense can be modified at any time or lose advertisers, and the site can drop from SERPS.

However, how would you value a site that makes money from affiliates and gets its traffic solely from Adwords? If it comes with the adwords account, for me this is a more viable proposition. It's solid, proven and won't drop out of SERPs tomorrow.

There is only one pitfall here. The seller could duplicate the site and bid against you, but you could take care of that with a competition contractual penalty. The real risk is he will cheat and do it anyway.

How would you value the site, and would you be a buyer or a seller?

[topper99]

I'm pretty sure businesses are bought and sold every day with "no compete" clauses in the terms.