Need help determining price for a site

Offered to buy a big site, confused about the price

[Vork]

Hi people,

Need your help here if possible. I have recently been offered to buy a hosting forum.

On the plus side:
- Looks like it has 15200 indexed pages (indexed by googlebot)
- pr5 home, some pr4 inside, a lot of pr3 inside
- i have a few link buyers already

On the minus side:
- on the average just 300 uniques a day
- just 18 active members

But more importantly, what do you think would be a fair price to buy a site like that?

I do hope I am not violating the forum rules as, believe me I am not trying to promote this site. Most SEO forums that I partcipate in were of little of zero use so WebmasterWorld is probably my last stop...

Your advice would be very much appreciated.

[edited by: msgraph at 12:46 pm (utc) on Mar. 21, 2005]
[edit reason] No url drops to site reviews please [/edit]

[The Contractor]

I do hope I am not violating the forum rules as, believe me I am not trying to promote this site.

Too late - if you would read the TOS of this board you would see that by placing your URL in your message, you already broke them.

[composer]

I Thing:

p= current-potential-value * 10 years
q= expenses * 10 years
r= potential - expenses
cost= r(±10%)

This is base value. May be additional counting is required. (Brand e.t.c.)

for example (all numbers and values is fictious) :
18 members * 30$ yearly = 540$
540$ * amortize to 10 years =5400$

Yearly expenses: 300$
300$ * expenses in 10 years =3000$

5400 - 3000 = 2400$

[MovingOnUp]

Just to show that there are multiple ways to value a site, here's how I would value it:

300 visitors a day at $0.02 per visitor (which might be high) = $6 per day or $180 per month

$180 per month for 36 months is $6480.

I think that would probably be a fair price. It should be relatively easy to monetize the current visitors at that price, and I think there could be quite a bit more potential if you could grow the user and visitor base.

[Lapka]

MovingOnUp:
How do you value the 0.02.

Would not a hosting forum be valued MORE than a free gaming website.

Given the same numbers, lets say one was a gaming site and the other the hosting site I would assume you would value them differently.

- Lou

[MovingOnUp]

Hosting is a profitable niche, but forums typically have an extremely low CTR. $0.02 might be low, but for a forum I suspect that it's probably pretty close.

[steve40]

just goes to show all different

I would go for between 9 times current monthly income - running costs and between 10% and 50% added dependent on how much I could grow income of the site

steve