How Much Is My Site Worth?!

[Instan00dles]

whats his website about? it seems to be down.

 

[Hector13]

Originally posted by: Moralpanic

Still, $150k seems an awful lot for a site that only makes $1500 a month. That means even if the buyer can double the profits, it's still going to take 5 years before he breaks even? I know i wouldn't buy such a business.

jeez, let me know where you are investing. You realize that would be about 24% return per year (if you assume that profits of $3000 a month)??

 

[psianime]

Link?

-psianime

 

[Feldenak]

Originally posted by: psianime
Link?

-psianime

Check Kenji's sig

 

[boi]

damn mrcodedude, you can't multiply for sh|t

 

[Looney]

Originally posted by: Hector13

Originally posted by: Moralpanic

Still, $150k seems an awful lot for a site that only makes $1500 a month. That means even if the buyer can double the profits, it's still going to take 5 years before he breaks even? I know i wouldn't buy such a business.

jeez, let me know where you are investing. You realize that would be about 24% return per year (if you assume that profits of $3000 a month)??

You mean 20% return per year... but he would still be in the hole for the first 5 years. I don't know, i guess my family has just been lucky in business then. We have businesses with startup costs about $100-150k, and we can easily make that up within 2 years.

 

[RossMAN]

Kenji's site Spoofee.com is still up and running, he uses first class hosting I might provided by the same web hosting company I use which is ...?

You people are CRAZY!

If I were offered $150,000 for a domain I'd say YES and even offer to fly there to personally transfer the domain in their name.

$150k would payoff all my debt and we could move to Oz.

 

[Night201]

Check out my sig

 

[FelixDeCat]

I have $29.95. Want it ?

 

[Kenny]

Originally posted by: Instan00dles
whats his website about? it seems to be down.

It's a site similar to FW.

 

[KahunaHube]

personally i dont see whats so great about his site.

There must be tens if not hundreds of these bargain hunting sites out there. Anyone can make a site like that and name recognition/loyal customers is not worth 100k or more in my mind for such a business.

don't mean to discourage you Kenji, just my opinion

 

[Looney]

Anybody that pays $150k for a business that generates about $17k a year is insane.

 

[AnyMal]

Unless you are hard pressed for money, why bother selling? If I had a little side business like that that required a minimum of attention (2-3 hours a day and provided a steady cash flow, no way I'd let it go!

 

[Hector13]

Originally posted by: Moralpanic

Originally posted by: Hector13

Originally posted by: Moralpanic

Still, $150k seems an awful lot for a site that only makes $1500 a month. That means even if the buyer can double the profits, it's still going to take 5 years before he breaks even? I know i wouldn't buy such a business.

jeez, let me know where you are investing. You realize that would be about 24% return per year (if you assume that profits of $3000 a month)??

You mean 20% return per year... but he would still be in the hole for the first 5 years. I don't know, i guess my family has just been lucky in business then. We have businesses with startup costs about $100-150k, and we can easily make that up within 2 years.

150,000 / 3,000 = 50 months, not 60 months. So it is 24% and the payback period is a lot closer to 4 years than 5.

 

[Gnurb]

I'd post this question on webmasterworld.com. They're a helluva lot more experience in that department.

However, you can't post the actual url there, it's against their tos. Just post I have a site that gets X number of visitors per month, growing at Y rate, and the profit is Z.

Personally, I say $70K is a reasonable amount. I wouldn't go any lower, with the steadiness of income you're generating.

BTW, congratulations on your success dude!! The buying power of cheap people never ceases to amaze me.

 

[GasX]

Let's oversimplify and look at it from a P/E perspective.

Assuming the $1500 is net profit and not gross revenue and that his growth rate is a steady 10%, you can set the PEG to 1 and solve for Price. A PEG of 1 is a rough estimate of fair market value.

PEG = Price Earnings Growth Ratio = P/E/G (where G = growth rate of earnings)

if PEG = 1, then P = E*G = $18000 * 10 = $180,000 (note that G is not expressed as a percent)

However, as a buyer, I would still do a competitive market analysis and look at barriers to entry, potential market size, differentiation of competitors, etc... I would not thing a PEG of 1 is warranted for this type of business, but I am no expert. Also, if $18000 is gross revenue, the calculated price will be much lower.

 

[robp]

Originally posted by: Moralpanic

Originally posted by: robp
Has it consistely made roughly $1500/m for the past year? If so, I would say $12,000 - $15,000

That is a realistic figure IMHO. Remember -- the .com bomb is over.

No way, that's WAY too low. yes, the .com bomb is over, but the ones that are around still are the ones that are known to be successful.

Still, $150k seems an awful lot for a site that only makes $1500 a month. That means even if the buyer can double the profits, it's still going to take 5 years before he breaks even? I know i wouldn't buy such a business.

We don't even know if the site has made $1500/m consistently this past year (or maybe i missed it?)
I track a lot of webmaster-related forums, and from everything I have read, most sites are purchased at, 6-12 months estimated revenue. Maybe with the exception of a very creative, unique site (which this site is not, there are many coupon/deal sites on the net). The best of luck getting $100,000+, but I don't think that is a realistic price.


I general, people do not buy websites based on *potential* anymore. Somehow people still think that "oh, if you stick banner ads on your website, you will make a lot of money".

We don't even know what kind of traffic the site generates, is most of the traffic from search engines? Or is there a large, regular user base? Do you have a mailing list? Hosting costs? How much time does it take you to update the site?
PR/Alexa ratings should also be taken into account.

 

[Shantanu]

Let's oversimplify and look at it from a P/E perspective.

Assuming the $1500 is net profit and not gross revenue and that his growth rate is a steady 10%, you can set the PEG to 1 and solve for Price. A PEG of 1 is a rough estimate of fair market value.

PEG = Price Earnings Growth Ratio = P/E/G (where G = growth rate of earnings)

if PEG = 1, then P = E*G = $18000 * 10 = $180,000 (note that G is not expressed as a percent)

However, as a buyer, I would still do a competitive market analysis and look at barriers to entry, potential market size, differentiation of competitors, etc... I would not thing a PEG of 1 is warranted for this type of business, but I am no expert. Also, if $18000 is gross revenue, the calculated price will be much lower.

Like I said in my last post, this is not a financial security. One has to consider the opportunity cost of time. If a web designer makes $40,000 a year working 40 hours a week, and this site requires 10 hours of his time each week, then he has to subtract $10,000 opportunity cost from the annual cash flows of the business.

 

[Gnurb]

also, while your at it-- your pr of 5, could be improved to at least 6 or 7 given the amount of traffic you get. you'll need to work at getting some links from sites with high pr's, and you should be all set.

 

[LeeTJ]

Originally posted by: ScottyB
I would sell it for what you make in a year x 10

time 2.5 is more common. i don't know of any business that sells for X 10.

 

[NetGuySC]

I think that I may keep it ..

very good site

and in fact I'm thinking about getting the WD 120GB hard drive for $80 after rebate.


I seen where somewhere mentioned that you should sell it and open another site just like it, but even if I did not read this post If I bought that site you from you I would have you sign a legal agreement saying that you won't open another site like this one.

 

[Hector13]

Originally posted by: LeeTJ

Originally posted by: ScottyB
I would sell it for what you make in a year x 10

time 2.5 is more common. i don't know of any business that sells for X 10.

Didn't AOL buy TW at about 300 x earnings?
Not that it is relevant here, but "real" companies almost always sell for more than 10x earnings.

 

[Miramonti]

still wondering how much time is spent updating it everyday...