Quote:
Originally Posted by rabbit
lets just say that there are very few sites in adult which can count on selling as an exit strategy. most do it cause they have problems, want to move on, fed up of the industry, need to finance other projects, etc. let's face it with a 1 year multiple, most people would just continue operating and collect. why sell?
get someone to operate your site, give him a % of profits, so they have a stake in it and you can free your time for whatever else you want to do.
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exactly.
the whole industry is basing 1 year multiple (or less) on the fact that if you are to sell you are probably hard pressed to do so and because you can't turn to mainstream you have a small market to turn to, you have to submit to low offers. and with such approach good offers never reach the market because as you said:
with a 1 year multiple, most people would just continue operating and collect. why sell?
It appears like the market is still convinced that there is a certain multiple that applies to any website. It ain't so in mainstream and sellers (unless hard pressed to sell) are no different in adult. they just won't sell. and that creates a lack of good offers and the whole industry feels like only BS is on the table and it keeps running in circles with that 1 year multiple (or less) in mind.