How much to sell a site/business for?

[camperjohn64]

I have a website that is making about $7,500 a year in passive income. I don't have to do anything I just get a check. I also have someone that wants to buy it.

How much would you sell something that is making you $7,500 a year?

[Barefootsies]

In a good economy, depending on the type of site (i.e. membership, versus affiliate, etc..) 12-18 months revenue. IF you have the stats to back up claims as well as some other factors.... domain, traffic, SERPS, recurring sales and for how long, and such.

In this market you may be closer to 9-12 months in what people will offer. The fact is few people have money for big dollar purchases regardless what is posted on boards.

In the end it will come down to what they are willing to pay, and you are willing to accept.

Good luck toots.

[camperjohn64]

I think you're right on this. I do have stats to back it up, but I think I would prefer to just keep taking the monthly money rather than take 12 months of revenue.

It would take alot in the bank/investments to make $7,500 a year in interest. So it doesn't make sense to sell it so cheap. Half price yes, but not 9 months of revenue.

Thanks for the insite Barefootsies.

[woj]

Unless you need the $$ now, I would just keep it, you will never get a fair price for whatever you are selling...


what are you selling anyway? url? how much do you want for it?

[SoloGirlsContent]

Originally Posted by camperjohn64

I think you're right on this. I do have stats to back it up, but I think I would prefer to just keep taking the monthly money rather than take 12 months of revenue.

It would take alot in the bank/investments to make $7,500 a year in interest. So it doesn't make sense to sell it so cheap. Half price yes, but not 9 months of revenue.

Thanks for the insite Barefootsies.

keep the easy money..pay the server bill and keeping walking

[tigermtb]

I have to agree, don't sell whatever it is. If you can sit back and literally do nothing... there's no reason to sell unless you're going to get 2-3 years earnings.

[Nicky]

Originally Posted by tigermtb

I have to agree, don't sell whatever it is. If you can sit back and literally do nothing... there's no reason to sell unless you're going to get 2-3 years earnings.

Yea 2-3 years is great but he should also consider what he could do with those ~8k he could sell for. Can you invest/build up something that makes more than ~$600 a month with those $8k?

[Relentless]

If you want to sell something now you are competing with all the people who need to sell now. Buyers are bargain hunting for sure.

[katharos]

why the hell sell anything? if you have site that is making half milion per year, then lets talk about sale, but selling site and live three months from it? i will never sell anything that is making me money, and the rest i will better let expire than give anything from my know how for funny price

[Basic_man]

Easy money is the way to go! Keep it !

[Barefootsies]

Originally Posted by Nicky

Yea 2-3 years is great but he should also consider what he could do with those ~8k he could sell for. Can you invest/build up something that makes more than ~$600 a month with those $8k?

I can, and could. So I would rather have the cash.

I would rather work on a new site where I still have some passion.

[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?

[rowan]

I had this convo with my wife the other day, trying to explain how a steady long term income was better than a one-off windfall. You don't sell a site unless (a) you're desperate or (b) it has incredible internet buzz driving up the perceived value

$7.5k of passive income is a no brainer.

[XX_RydeR]

Originally Posted by rowan

I had this convo with my wife the other day, trying to explain how a steady long term income was better than a one-off windfall. You don't sell a site unless (a) you're desperate or (b) it has incredible internet buzz driving up the perceived value

$7.5k of passive income is a no brainer.

Exactly, a lot of people are in shit for a quick buck though.

Not this guy obviously but many are. Which is a shame.

[JimmiDean]

Originally Posted by Barefootsies

In a good economy, depending on the type of site (i.e. membership, versus affiliate, etc..) 12-18 months revenue. IF you have the stats to back up claims as well as some other factors.... domain, traffic, SERPS, recurring sales and for how long, and such.

In this market you may be closer to 9-12 months in what people will offer. The fact is few people have money for big dollar purchases regardless what is posted on boards.

In the end it will come down to what they are willing to pay, and you are willing to accept.

Good luck toots.

Some real good info right there.

[Raf1]

Originally Posted by woj

Unless you need the $$ now, I would just keep it, you will never get a fair price for whatever you are selling...


what are you selling anyway? url? how much do you want for it?

very true.

[slapass]

The reason buyers pay 6-12 months income is that very few sites are static. If he really does nothing then the income is probably falling. Google serps change. Trades change. Things change. So you are kicking out the cash now and hoping you can recoup it and maybe the site runs for 2 years and you actually get ahead.

Just showing the other side of it.

[Gerco]

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?

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.

[camperjohn64]

I think you have hit the nail Gerco. The product has some content, and about 4 years of consistant income. But I'm bored with it, and it could go up or down at any time.

Let me just say it, the website is www.rentyourdot.com

About 600 customers, and 5000+/- websites hosting content, and since it is based on SEO, could go up or down at any time. At it's peak was doing $1000/day with about 49,000 websites. Never quite hit the 50k domain mark.

Now it's down to about $600 a month with about 5000 domains. It's pretty much self-run with new customers signing up and old dropping out without any intervention from me.

But I'm bored with it...

[ShellyCrash]

Unless you need the money now your long term recurring revenue will beat out the short term gain of off loading the business. Hell, maybe even put some time into marketing it more and see what develops.

[ShellyCrash]

You could also squeeze cash out of it in other ways. Are you doing any list management? Go around to a few mainstream ad networks, see what offers are compatible with your clientel and set up a few mailers.

[Barefootsies]

Originally Posted by camperjohn64

But I'm bored with it...

I completely understand and feel you there. I get the same way.

I have a number of sites I have not updated in months or years still bringing in sign ups. However, I have no interest in the site any longer and have moved on.

Sometimes you just wanna cash out and leave the table.

[JimmiDean]

I think one part of the equation that may have been missed in the price senario, would be the longevity of the site.
My wife has some sites that have been online for over ten years, and always cash positive.
I would suggest that would carry some weight in the final price along with all the other factors.