I googled, and found this site. http://www.websiteoutlook.com/ It has pretty interesting information about any site that you want to check. It gives information such as daily page views, and avg daily revenue. Should be atleast helpful.
Someone wants to buy my site, how can I value it?
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Re: Someone wants to buy my site, how can I value it?
#22I sold a blog with about 1 million pageviews per month and a monthly income of about $1100/month. I valued it at two years income + 1/2 of projected growth income over the same two year period.
What type of business entity (LLC, S Corp, etc) was your company when you were approched, if anything?
Re: Someone wants to buy my site, how can I value it?
#23It's next to impossible to be anywhere near accurate without knowing the topic of the site, its niche in the topic, etc.
But.. based on the profit alone (assuming that profit takes into account the costs of continual content development - if required) $150k would be a bare minimum IMHO. Since the "growth trend" probably relies on you and your plan somewhat, a purchaser is not going to be so interested in those speculative numbers.
Re: Someone wants to buy my site, how can I value it?
#24I sold a blog with about 1 million pageviews per month and a monthly income of about $1100/month. I valued it at two years income + 1/2 of projected growth income over the same two year period.
wow that seems pretty cheap actually. As an example, unnamed friend got a $40k offer on his blog that had 100k pviews/month and very little monthly income. He just had a passionate following and a decent pagerank.
Re: Someone wants to buy my site, how can I value it?
#25I am in a similar situation right now, and one of the things that we came up with is an upfront payment with additional dollars down the road pegged to revenue growth. To clarify, I am not suggesting lowering your sell price but rather getting the buyer to commit to more dollars on top of your discounted cash flow figure. One more minor advice is to negotiate a consulting fee for yourself. Clearly, you've been doing…
Be careful with this method. I've heard a story of a German entrepreneur who built a valuable business around a web service and was bought. He wanted more money than the buyer could give so they agree that he would get a significant amount of the value as shares. There was much more share value than money because the seller was confident in the business model. Then the bubble 2000 exploded and the shares lost all their value. But wait, the worst is yet to come.
The next year the IRS claimed the taxes on the transaction and refused to take in account the loss of share value. SOo the seller had to borrow to pay the IRS and pays it back by working for the buyer !
The lesson I learned is to think twice in getting payed with shares or revenue promise.
Today the economy is really uncertain, so watch out for this kind of accident.
It also depends on the business and the expected long term stability of your business. Today I would prefer a sound business instead of a big pack of money. I wouldn't know how to secure it.
Re: Someone wants to buy my site, how can I value it?
#26I sold a site doing 4,500 uniques a day, but a much lower page views and incoming profit for about 2.25 X yearly revenue. It was a good call on selling as the sites growth was starting to stall.
Re: Someone wants to buy my site, how can I value it?
#27You could try to look at some of the often cited terms from public companies and try to see how you compare. For instance, a publicly traded company in your sector might be valued at a p/e ratio of 10 ( p= price, e = earnings). If your yearly earnings are $50.000 then your company would have a valuation of $500.000.
Apple, a growth company, is at a P/E of about 18.
The historical average is about 20. Growth companies (like Apple) were at 30-40+ recently.
Re: Someone wants to buy my site, how can I value it?
#28Don't sell it. Move to Thailand and manage it from there. You'll save money and have a better life. Seriously.
Re: Someone wants to buy my site, how can I value it?
#29Since you do have money coming in and an expectation of what your growth will be, you can run a discounted cash flow model to get a price.
This is as much for my knowledge as the original poster, but what discount rate would you use? He doesn't exactly have a beta to do Weighted Average Cost of Capital with, or am I totally missing something?
Dunno. I'm pretty sure there's some magic numbers out there for certain industries. I think it's one of those variables you argue about during negotiations.
Re: Someone wants to buy my site, how can I value it?
#30just wondering, how old is the site? Is the income from membership sales?