Websites for sale

why are they so expensive?

[TimmyMagic]

I've been browsing on a well known website which has lots of businesses for sale including websites. I was shocked at the asking price for nearly all these sites.

A classic example is a dating site setup in June '04 which they claim is made $100,000 turnover in the first month. The asking price is $600,000. I checkout the website and it looks very nice. However on closer inspection I noticed that all the women on the site are absolutely stunning! They all seem to be models because their photo's are very professional. It is obviously a scam...who would fall for this?

What really gets me is how people can be asking for so many $$$'s on some really average websites. I can't believe people actually pay these sums for such businesses.

[Symbios]

No sane person would, as always 'buyer beware' prevails.

[figment88]

perhaps they are not really looking to sell and just want some exposure.

[ogletree]

I don't think they expect to get any bites. It's kind of like putting a sign in your front yard selling an old coach for $600,000. Maybe somebody is stupid enought to do it. I guess it does not hurt to troll for idiots.

[Phil_C]

If you had a site making $100,000 a month, would you sell it for $600,000?!?! Hell I'd keep it and create a 100 others doing exactly the same thing!

[TimmyMagic]

The thing is it's not just this one site that is overpriced (an understatement)...it's nearly all of them.

Take a look for yourself at snipped

[edited by: DaveAtIFG at 5:15 pm (utc) on Sep. 2, 2004]
[edit reason] No specifics please! [/edit]

[Essex_boy]

Hmm I know this site its a well known co.uk I loked a site for £1000, unfinished and a template site at that.

Ive started developing ecom site just for teh purpose of selling them on - all optimised - all CC processor included, Im sure I knock the competition for six.

even with my limited ability.

[JuniorOptimizer]

Once you look at the inflated prices, it makes you want to build your own sites, doesn't it?

[TimmyMagic]

Sorry for giving the URL in my previous post but i actually found out about the site from this forum.

Yes it does make me want to build similar sites but i cannot truly believe people pay such sums for half finished/crap sites. But if it's true then I don't mind joining the party.

[Rugles]

>>>If you had a site making $100,000 a month, would you sell it for $600,000?!?!

That is exactly my thought. Does not make any sense.
It is like those old Tom Vu commercials where you make millions on flipping real estate with NO MONEY DOWN.
I always thought to myself "self, if he can make so much money on real estate, why the heck is he doing this cheesy infomercial and becoming the butt of jokes".

[shigamoto]

Hmm it beats me, the basis for valuating a website is rather subjective I guess.

On another note which isn't that important but I got a proposition on selling one of my old websites. The guy wanted to give me 50 bucks for the thing with content, it really broke my heart because the content took months of research to put together...

But anyway the asking prices for some websites are way off.

[lawsonms]

TimmyMagic,
I own a business brokerage firm and we have sold many websites. We also turn down about 20 listings per month because the owners either want a stupid price or they can not back up their numbers.

Only about 20 percent of the sites sold are legit money making businesses. Most of the sites listed will either never be sold or they are just looking for some free traffic.

[Essex_boy]

OK so when someone approaches you what are you looking? And how do you value the business?

[SkyDog]

Usually the asking price is based upon the annual gross income.

[lawsonms]

One problem you find is getting the truth about net revenues. Some site owners are not real honest about income statments. Anytime you spend any real money on a site always make sure to get an accountant involved.