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The "know it all" Paul is here to set everything straight :1orglaugh

6 years of revenue? :helpme :error

it should be 20 K/ month x 6 = 120K

On what planet?

:1orglaugh

No one in their right mind would sell a 20k profit business for 120k

probably not, but still, paying 6-12x monthy revenue is a standard in adult.

10 times annual??!?!

Nuts.

Lol 10 times has never been the norm in adult

Some of us got close though right?

Why not? Almost everybody would sell almost any business of theirs.
Of course if it is growing the price would be much higher x monthly profit multiplier than if it was flat or declining.
If OP is expecting to pay same multiplier than of course no one would sell.
If OP is ready to pay MUCH bigger multiplier in comparison to declining then people would consider.

He did not say sites, but business. Meaning there can be 5 sites making 20K combined, not necessary one.

It's not even in mainstream website deals, let alone adult. Far from it :)

Yea I don't know where he got the 10 years, it's totally wrong

Didn't see this thread because I've spent the last four days down in South Beach, living the dream. :pimp

I've had offers to buy my company several times over the past 4-5 years. Each time I was still growing but had not yet reached the level where selling my biz would allow me to retire or significantly invest in other businesses. So essentially I would've just been selling my job - and without something else to do! Sure I could've lived off the money for a year or two or gotten a j-o-b somewhere. But why? I was still growing and I have a "magic figure" in my head. Once that is reached it's bye-bye Porn Nerd (hello beach).

But it really depends, like everything, on the situation. If there's not a pressing need or desire to sell then the owner can set his price (2x,3x,4x earnings) and if he doesn't get it he knows time is on his side and he'll get it eventually. Of course, if we're talking 100k+ a month vs. 20k a month it may be worth it just for the seed capitol. :)

Man does not live by bread alone. Look at what happened to Shap... Of course he has a lot of other stuff going on.
I'm sure you have other things to do, good luck to you.

It's not all it's cracked up to be. I lived on Isle of Capri in Australia for 5 years, now here at Monarch Beach, California for 6 years. And how many times I actually go to the beach? :1orglaugh:1orglaugh:1orglaugh

you have to look at the whole picture... my guess is OP wants to pay closer to 1X, to maybe 2x annual revenue tops AND wants a business that is growing AND wants a business that is relatively simple to run (he obviously doesn't want to grind 100 hrs per week anymore)...

so chances of reaching a deal with those conditions are slim to none... :2 cents:

Not really... Its business major 101

Similar to bond or real estate valuations, the value of a business can be expressed as the present value of expected future earnings over the years. Use any calculator to determine the value of your business today based on discounted future cash flows with consideration to "excess compensation" paid to owners, level of risk, and possible adjustments for small size or lack of marketability.

So if you can show that your business has a solid base then:



Now, I have applied the standard growth of the years expectations, but reduced it by 10% per annum for lack of marketability.... There are many calculators, but all will come with the same or similar results...

Of course there are many caveats...most of these formulas presume that the business has its own assets and longevity over the years. In our ( web owners) case that we own an exlusive content... So..if you just recycling other content, you are completely correct not worth a rats ass. :2 cents::thumbsup

there is business school theory and then there is real life... in real life, business is worth whatever someone is willing to pay for it, and since no one will ever pay 10x for an adult business, it's clearly not worth 10x like you are claiming... :2 cents:

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.

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...:thumbsup:2 cents:

good luck finding that gem.

its actually very easy to do, just requires a bit of cleverness.

What are we arguing about?

Just ask Shap how much he sold Twistys.com/Gaytube.com for (i mean in terms of how many months profit).

Stilll quite a useless number. Unless you're selling the exact same business with the exact same brand recognition and the exact same etc. etc.

Like said already in the end what matters is what someone is willing to pay for it.

I think porn is different from mainstream movies. Old porn isn't worth much. Sure, there are vintage porn sites, but it's a tiny thing in comparison to the rest. There are also sites that have bought 10000s of old scenes - VideoBox, VideosZ (and Bang), MovieBox, Adult Empire Unlimited, BaDoink, etc. You can buy old content for pennies.

If you bought a website, you'd be buying the brand rather - the fans, the working promotion infrastructure, the affiliates, etc. Unless you can continue to produce movies that are exactly the same, the site and the earnings will decline fast, IMO.

Heh today it is 45 and raining in NYC and yesterday it was 80 in Miami. Believe me, I will take the beach (whether I actually lay on it or not). LOL

I disagree on this point. Even if it is 'recycled' it is still valuable if it's bringing in revenue. Yes exclusive original content will be worth more but it's all about the revenue being generated. As many Producers have learned over the past few years (sadly), their libraries of exclusive content are worth less and less each year as piracy and those dreaded tubes make 'exclusive' a relative term.

Content isn't worth much... the business you are buying is

That being said please buy me out for 10yrs revs

You've been hoodwinked and are perpetuating a lie :1orglaugh

Content is stolen because it is valuable, illegal businesses are then built around the stolen content.

Mainstream music/video catalogs are bought and sold as commodities because of the sole value of the content :thumbsup

Yes, and if the adult industry protected its' content the way the film and music industries do porn would be worth a fuck lot more than it is now. :Oh crap

Those of us left, have/do ;)

I thought you sold all your sites?

^^ my straight stalker ^^

I agree

That doesn't mean that all content is valuable and/or will stay valuable. Buy a companies library now and probably half of it is SD. I really don't see much value in SD content. I personally wouldn't even use it as filler anymore...

Mainstream content is different from most adult content. I enjoy listening to 70s music or older movies but look at a 70s pornmovie... uhm... you must be into some vintage indeed.

A top quality digitally shot adult movie looks like crap in 10 years from now if you see how fast technology develops...

Most content can be found at the tubes; filesharers, etc... You can literally watch content package prices drop here on gfy as the months pass by. I think Paul sells his content package for $500 now... etc... (or is it $5 bucks allready?)

If you want to pay 3x annual you really must ask yourself: why not start from scratch shooting content? It's way more cheaper and thus less risky;) Anyone with extent previous experience and succes in running paysites should be able to bring a new product to 20k revenue monthly within months...

I agree and I'm surprised more people don't do it, it's not like the content investment is astronomical or anything.

20K revenue or profit? When calculating multiples, it's based on the profits, at least from what I've seen so far.

So you make lots of money with old content. Join the club.

BUT, are you in the club that Shap wants to speak to?

The days of making 300% profit per month on a site. Were 4/21/2001 and 6/15/2001 :1orglaugh

It's easy to prove me wrong. Show your site and how it makes money without spending a lot on traffic and content.

OR STFU!!!

Here's advice from someone who knows something about this.

We stopped working in January 2008 and shut down all expenses by 2009, except processing and affiliates. From 2008 through to 2014? We made obscene profits. It was simple, we stopped spending out and kept taking in. Revenue declined profits rose doubling, trebling, quadrupling, etc.

If a person wants out why sell a business for 6 months turnover when they can stop spending money and take 12+ months turnover at 90% profit? What work is there that needs to be done that can't be done in a few hours a day? If there are no updates and pestering affiliates with little or no sales are told to go take a hike?

OK a programmer to make sure it runs and someone to answer emails.

This is how some here make a living and make the owner money with a 50/50 split. We never took those offers because we made more with me looking after the sites.

Wow Paul can write something that actually makes sense once per 1000 posts!

You forgot to mention the same year.

:1orglaugh

Anything else?

I am not looking ... I will wait until somebody makes me an offer or do it like Paul ( commented below) i will just sit and collect from my library...:thumbsup

You are trying to convince a fox to wait for the farmer to sell it a chicken.... You cannot be mad at them, they believe that stealing is their birth right...a delusion but a fact.

I also do protect our content vigorously and in general have cut the piracy down by about 90 %.....:thumbsup

you proving you wrong all day

Always had weekly new updates...

Nothing "BUT"... completely irrelevant question... I'm not selling I allready sold...

Bump for Shap finding the right situation to get back in the game.

Awesome! Hard work & madening at times but well worth it :thumbsup

To make sense you have to show how I'm wrong.

As an affiliate, my idea of running a site down could hurt your income. But it still makes more money for the owner than selling for a few months turnover.

No nothing else. Besides a few screen grabs, what are your qualifications?

Then it would be easy to tell everyone why I'm wrong.

you cannot proving a negatives.

but although, you working's at 40 year's in biz and make cash to get €18,000 cottage in east europe and live on pension's. GREAT SUCCESS!!!

Sorry missed the sold bit in your signature.

As someone who sold did you get more than you could have got by allowing the site to keep going on auto-pilot and making a lot more profit each month. Or needed the lump sum and sold for someone else to run it down?

All but a few sites are taking less every month. No matter how hard someone works a site it will take less than it did the previous year. Which is why so many affiliates are moving away from selling memberships to selling cams, dating or something else.

There are huge opportunities for people with money to buy sites and run them down over a period of years. They can just do nothing which I could afford to, or do their own promotional work even with some outsourcing.

For site owners who are running out of money or need money to sink into another project.

paul-markham.market.adultcentro.com/#content_cp=1&content_rpp=24&content_sort=publishD ate.publishDate%2Fdesc Still making money after 8 years sitting on the sofa. Nice cherry on top of the pensions.