Quote:
Originally Posted by BigFurry
That may be the theory that they teach in school. And I'm sure they based it on brick and mortar businesses. The fact is, ONLINE businesses are sold for a few years of revenue, not 10. Everything is worth what they pay for it, and this is the multiple that buyers are willing to pay for online businesses.
Now this information is from online mainstream, and affiliate adult sites. I don't have any information about adult paysites. But I really doubt it that anyone would buy a paysite for 10 years of profits.
The online world changes much faster than brick and mortar, buying a website is not the same as buying a grocery store or an auto shop. Facebook, Twitter, Booking.com appeared roughly 10 years ago. Who knows what it will be like in 2026?
Maybe that calculator would work, if you set the level of risk variable really high. Because it IS really high.
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Do not want to argue but as i said in my last post. It is the content ( film library) somebody would be buying, NOT a website per say...in an original content business ( adult or Hollywood) the "brick and mortar" refers to copyrighted content ( used to be masters on film, then on tapes and now located on hard drives), but it is all still basically the same. If you own a lot of good content, this will have a so called " long tail" of consumption. ( note how many vintage and classic sites there are). I am still selling ( and getting rolyalties from others) on a movie I have made in 1992 !!! Of course not for 100s of "Ks" as then, but 10 K per year is not so bad and after 25 years it is the " long tail" I am referring to.
Of course you are also right that the price is determined if there is an interest, but you may have to make a presumption that there is a business who will apply the same rules to adult business as to any other business.... And that is
If you sell a "smoke and mirrors" you get pittance, but if you have a real value you will ( sooner or later) get it.
Anyway I do not know CPM from ATM or MechBunny from the EnergizerBunny, but I know business and finance...
