Forum Moderators: LifeinAsia
E.g. a website that pays 8500 USD per month, how much would it be worth / for how much would you sell / buy it for ?
-Costs to operate the site in both manpower hours and fixed costs.
-Revenue history.
I could then make a bid made from a 12x-36x multiple.
What would you say is a website worth in terms of annual website revenue?
First, I would stop thinking in terms of revenue which is a fuzzy term and is used to mean both net profit and turnover. They are obviously vastly different beasts. Think in terms of "net revenue" as in total income less costs less a fair wage for the time you spend maintaining and promoting the site.
A lot of factors influence the price - from how steady the earnings are ... to the mood of the market. A very high quality domain name could further skew the value.
Other things being the same you'll find that the achievable sales price depends on the sector you're in (content sites typically go for a higher multiple than proxies). I've studied these figures in some depth and have done some detailed graphs analysing the typical multiples sites go for in different categories. They are posted on a well known webmaster site - the main destination for website buyers/sellers - but the link probably won't be allowed. An image search for sales multiple chart websites may take you there.
