How much is this website worth? $30,000/month revenue

1,5 million uniques per month.

[Amoas]

How much would you say a website with the following stats is worth?

* 1,500,000 uniques per month
* 20-25 million page views per month
* $30,000+ revenue per month
* 2 years old but very established.
* Nov 06 looks to be the best month yet.

What other information do you need to make an evaluation?
Thanks!

[oddsod]

I can tell you where 10 x .... About 75% of books based upon Business Economics

Let me get this right - you're trying to prove a complete arbitary, worthless, out-of-thin-air statistic by making up another one!? LOL

I'll tell you why no "Business Economics" book would give you that figure - yes, not one single book - partly because it's not strictly a "Business Economics" issue, and partly because there is no such 10x standard.

It isn't plucked from thin air....it is/was the "ball-park" theoretical standard

Pure, out-of-thin-air fabrication. End of story. It doesn't become true just because someone would like it to become true. You wouldn't be able to demonstrate this 10x "standard" by quoting any business/economic authority ... because no such quote exists.

I haven't read or heard of a better professionally accepted "general" method more recently. That is not to say there isn't one, and I would certainly appreciate some pointers to newer reference works on this subject that are not considered too "off center" or extreme. Anyone know of any?

What they do teach in certain accounting and finance classes is the valuation of "going concerns". The theories and terms you'll likely encounter are P/E ratios (for listed companies), NPV, EBITDA, discounted cash flow etc. The fundamentals of business valuation aren't divided into professionally accepted and professionally unaccepted methods (valuation societies notwithstanding)... or off center/ right-wing / left-wing. They are largely accounting principles, not political opinions. You can read a little bit about valuations here [en.wikipedia.org].

It's hard to find a net company with as much as a 10 year history!

So? What does that have to do with the price of fish? The main reason past income is used is as a guide to future income. A gambling site that made millions till the US laws changed will find that past income isn't helping the negotiations when the business model can't continue into the future. New owners use past income to figure what future income is going to be 'cause that's what's really of interest to them.

that probably means the 10x theory is conservative.....not a hyped up valuation

As I've said in other threads here at WebmasterWorld - it's strange that some people talk the talk but don't walk the walk. If 10x is a fair value - and decent web businesses are selling all over the place for little over one year's revenue - why are you even bothering to talk up prices; shouldn't you be out there borrowing money to buy up every site you can get?

Nah, the people with 10x valuations are, like the OP, looking to hype up the market for when they want to sell. Secretly, they know that the market just isn't paying those multiples for run of the mill sites. As someone who's been buying, selling and brokering web businesses (full time) over the last several years I can categorically assure you that 10x is not what happens regularly in real life.

[percentages]

> As someone who's been buying, selling and brokering web businesses (full time) over the last several years I can categorically assure you that 10x is not what happens regularly in real life.

Hmmm.....So you are explaining why we shouldn't use you as a broker for website sales? I think we got that already!

Personally I think 10x is cheap and a simple Google search will confirm it, let alone the library of books I have to back me up!

I've done my homework! I sell for close to maximum future profit (conceivable)!

I hype the market less than the market hypes generally, I try to deliver realism.

OddSod, you appear to deliver failure......well good luck with that message!

I'm from the UK also, so I know the boundaries you have to live in! They were too restrictive for me....so I relocated to the USA.

I know I can sell almost anything at 10x, I would often buy them myself at that price! The money is in selling them for 20x to 30x, not unreasonable, not a large gamble, just a slightly riskier investment :)

[oddsod]

I would often buy them myself at that price!

Yeah, sure, LOL.

[Essex_boy]

If your happy withit take the cash never shares, Richard Branson did just that and eneded up with nothing on one of his ventures.

He said you should NEVER do that

[oddsod]

==OT==

Branson really is a character. He's licenced his Virgin brand in a deal where he gets paid for other people to promote his brand via their advertising.

Now why didn't I think of that? Oh, wait, I don't own a big brand like Virgin :)