Originally Posted by McSpike

You all posted valid points.

Yet... they all apply to mainstream just as well. Buying sites in mainstream is just as tricky as here with the exception that sites (publicly posted) are under much bigger scrutiny because the market is that much bigger. Thus 95% (probably more) of sites for sale fall off the lists because they are junk. So, junk is very much present in mainstream as well and only fools buy it, yet the good sites go for 2+ annual net.

I believe the same junk ratios apply to adult. Majority may be junk. Sure. Then why only 1 year multiple max for the good ones?

Someone said whatever site is making money is doing it because someone is pushing it. The same is true in mainstream. You have sites that are a full-time operation and ones that are hands off. Different multiple is applied to them, yes, but still this multiple is twice as high as in adult industry.

I've been making money without actually pushing my adult stuff. I adapted the model twice in last 10 years and that was it. Other than that it's hands-off. While such a site would easily go for 2+ annual in mainstream, here it's only worth 1 year multiple.

So, why are things that different in adult?

I'd say it has nothing to do with what everyone posted above. It has everything to do with a closed industry. A small market. If the whole net was buying adult sites, multiple would be much more mainstream like.