Selling a website: How to determine a price?
 

One of my customers wants to sell their website. It was an 100% amateur self produced website operated by a young couple. Now they are separated. The site has been running on cruise control for almost 2 years now. It has been abandoned.

In 2012, they earned: $52 494.10
2013: $34 500.51
This year so far: $17 424.99

They asked me how much they could sell their website. What do you think? Is the site sellable and on what should they base a sale price?

I am not sure if I am allowed to post their URL yet. I will have to ask them.

8 icecreams ... have luck! :)

$7000 max

Whatever a buyer's prepared to pay. Given the fact that it's pretty much on auto pilot, the revenue will only keep declining. The rebills will keep going to shit, so even if it still gets some joins they'll likely cancel quite fast.

it would be compliant with the evolution of the income...

It should make more than that next year :2 cents:

Depends on a few factors but mostly last 3 months of profits

Shoot me an email with more details and I can give you a better estimate

I'd like an email too, if ever posting info about the sale
webmaster
at
nnboard d0t com

thx

Assets, equity, and cash flow.

35% decrease in revenue in 2013
50% decrease in revenue over 2013 with 29 days left in this year.
Giving the benefit of the doubt that 20k will be made in 2014 EOY, you've dropped revenue nearly 68% in total in just 2 calendar years.

The valuation is about cash flow, since any assets (mostly content), is already more than likely 2 years old and aging in the best case scenario.

It doesn't appear that the traffic is enough, or of the quality to keep the revenue stream steady, or the content is not compelling, unique, and has interest to make sales.

It's all about cash flow. People don't buy potential, they buy assets, cash flow, and equity. If the trend that has happened so far in the last two years continues, this business makes less than 5000 dollars next year, and 2K the year beyond in 2016.

This is a fire sale.

:2 cents:


.

Sounds about right, also what are the running cost?

would be fun to see if I could get it going back up in revenue...with a mothballed site I bet it wouldn't be hard - please email me when they settle on a price

5000$ if revenue stream is on 1000$ at the moment per month

10K would be fair price, if analytics are good (=people like the site and decrease is only due to site being abandoned).
If site could be revived - even more, but it does not seem so because that couple is no longer producing content.
Maybe introduce another couple to the site and keep updating?

Anyway it would not make any sense to sell it lower than 10K.

"Whatever a buyer's prepared to pay." is the answer I would agree with. The buyer may have all kinds of interest in it. He may want the domain for his own idea, or he may see it as an operating business in need of a boost to increase profits. Regardless, he knows why he wants it. Ask him to make an offer, then negotiate back and fourth until you reach a deal.

Good luck!

Email the info to traffictitan [at] gmail . com

Thank you very much everyone for your inputs! :thumbsup
I have no idea of the current running cost. I think that it is very very few money/month for the server.

I will send her this thread and she (or I) will contact you if there is anything.

This! :thumbsup

As a general rule, if selling I would ask for 12 months revenue and settle for 6. But I've never been inclined to sell a business that was earning money unless I felt the handwriting was on the wall somehow.

If buying I would offer 3-4 months revenue and go up to 8 if the seller is not easy to deal with. Any more than that and its easier and less risky to build my own.

5-8 times monthly revenue.

I always LAUGH when people say 3 months income. The guy can just keep the site and get that income within 3 months, it's not like it's take a year to get your 3 months income lol. Even 5-6 months isn't worth selling unless you know the site will continue to die fast And you simply need the cash.

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This. Any experienced Webmaster will look at the site, the cash flow, the potential (traffic, etc) and decide if it's a money-maker (even a small one) and enough trouble to acquire. If not, he can build his own. Buy some old content for much cheaper than this couple is willing to sell for and build your own site. This site has to beat that possibility or it's not worth it IMO.