GoFuckYourself.com - Adult Webmaster Forum - View Single Post - How do you price adult sites for sale or purchase?

kjs · 05-15-2018, 08:51 AM

It's whatever someone is willing to pay.

Here is the formula that I use to begin the negotiation.

Trailing 12 mo. revenue * (average customer retention in years * 0.66)

For example, I know that my revshare customers on white labels stick around for several years. For this example assume it's 3. If my trailing 12 month revenue was 10,000 then I'd value the site at 10,000 ( 3 * .66 ) = 19,800. The 0.66 is your discount and is where you negotiate. If you look at this from the other side of the table your expected revenue on the site over the next 3 years, allowing for assumptions, could be ~30,000.

I would NEVER use this method for any business that is mostly dependent on Google SEO. It can change overnight and it's just too risky. I buy companies that perform only based on repeatable media buys and well established advertising methods.

05-15-2018, 08:51 AM
kjs Confirmed User Industry Role: Join Date: Jan 2014 Location: West Coast Posts: 167	It's whatever someone is willing to pay. Here is the formula that I use to begin the negotiation. Trailing 12 mo. revenue * (average customer retention in years * 0.66) For example, I know that my revshare customers on white labels stick around for several years. For this example assume it's 3. If my trailing 12 month revenue was 10,000 then I'd value the site at 10,000 ( 3 * .66 ) = 19,800. The 0.66 is your discount and is where you negotiate. If you look at this from the other side of the table your expected revenue on the site over the next 3 years, allowing for assumptions, could be ~30,000. I would NEVER use this method for any business that is mostly dependent on Google SEO. It can change overnight and it's just too risky. I buy companies that perform only based on repeatable media buys and well established advertising methods.