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I was recently offered 12 months revenue plus $10,000 for a site, which would have taken it very close to 6-figures and it was a no-brainer - I much prefer to keep it and the revenue for the next year and beyond.
My "problem" is I quit my day job years ago, so I'm semi-retired to the point where I simply maintain my site(s) and don't have a real job, so I burn through most of my site's earnings to cover living expenses for my family. This makes it a higher risk investment to me since I have more to lose if things go south. But if I had a day job, it would simply be money in the bank each year, doubling and tripling.
One solution might be to expand your site network so that you've got plenty of money in the bank at the end of the year, even after living expenses. If they're the kind of sites that "run themselves" (the best kind!) then once built and promoted, they're like an ATM stuck on "dispense money" :)
There is no such thing as too low or too high. There's only what the market sets.
If he says no then sure, he has the code but that will always be the case whatever option is used.
He tells the lawyers to transfer the funds
3. He tells the lawyers to transfer the funds
If you can improve the value of your sites by what you anticipate they can do , maybe you can raise the sell price.
the higher the multiple, the more that any increase in revenue will boost the final value of the deal.
is it a good idea to buy sites at 4x or more of annual revenues?
[edited by: oddsod at 1:00 pm (utc) on Mar 12, 2010]
Not so. With a properly constructed contract, he gets the code only after he's made a non-refundable full payment to your lawyer.
Personally as someone who has used escrow/com previously, set the time to view to 1 day - otherwise they can reverse the deal once having changed DNS and trialled your traffic....and taken your code.
We got stung by that one on a 3 day view - luckily all turned out ok in the end.
But if you're selling in GBP then you're probably in the UK. I may be wrong, but I believe EU laws doesn't allow to pass you personal data to the USA without informing and getting consent from every individual user. At least that's the way in Spain.
Then I transfer the domain to him and give him ftp access.
Then he does the following in 24 hours:
There are a lot of industries (restaurants, jewelry, auto sales) where it is the norm to deal in large cash payments like this, and face-to-face meetings in public places are often the best way to make payments that everyone can be comfortable with.
- The transaction is a large amount. Certainly worth the cost of a plane ticket for either party.