Quote:
Originally Posted by camperjohn64
To make $7,500 a year, even though it is a bad economy etc, would take at least $200k in the bank/investments. Even at 7.5% return which is really optomistic, you would at least need 100k investment to return 7.5k per year.
Therfore I figure anything making you 7.5k per year is at least worth 100k (given a buyer that has is willing to shell out flat value), so if I was offered 75k, then I would sell it.
For now, I will just keep cashing the checks.
I guess it is similar to those that will millions. 50,000 a year for life, or 2 million lump sum?
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Yes, but the logic here is a little flawed. With the 200k investment, If you don't like the return your getting you invest it into something else. (You can always take your original money back out)
If someone paid you lets say 100k for a site making 7500 a year now, and it failed to continue to perform, then you would be stuck and have to try and unload it for your investment, which would be risky at best.
If the site has actual hard value, IE, you own the rights to all the content, that content exclusive and is a proven seller, then maybe you would have something as the buyer could then take that content and use it to build something better and potentially more profitable.
Therein lies the problem. If your sitting on that pile of marketable exclusive content, and it's got a proven track record of making money then why would you sell it? Sure, you make be in a position where you need the cash for another project or your just tired of the whole game and looking to retire into something else entirely, but the fact is that that exclusive content managed correctly could potentially bring you an income for a VERY long time. Reproducing that content could be nearly impossible (Take my site for example, your not just going to find someone that can shove and entire football inside themselves for camera) Therefore it becomes even more valuable. BUT it would still take the right people willing to take on such content and people that understood the whole nitch fetish to make it truly successful so the buyers market gets cut way down.
However... if your just sitting on a tgp or similar site where the income is directly based off others work and has no real tangible value other than the sites current fleeting traffic and (if it's good) a name, then what is the person really buying? Traffic. If that's the case how much traffic could that person just buy outright for the same about of money that the site is selling for and would it be better traffic or more focused? I see lots of variables.
Course I know nothing. so take what I'm writing here with a grain of salt. It's just how I see it personally and therefore totally open to discussion and dissemination.