Wanted: Website Domains with steady PPC/Adsense income

[sitemaker]

I am wondering: what is the current "multiple" for traffic domains these days. Either a parked domain, or a small PPC template site with Adsense, etc.
I am considering investing in a bunch, and am wondering what to expect.

Please do not send me offers of specific domains just yet. I will add to this thread once I've set a budget, and will also specify what interests/industries I'd most like to have.

But for now, can you advise me what to expect regarding multiples of revenue I'll need to spend, and how to verify the accuracy of sellers' traffic/revenue figures.

Thanks in advance for your guidance.

 

[hittjw]

I'm paying 1.5 documented net revenue for developed websites and a factor of my average CPM on similar traffic, depending on the site. It really depends on what you are looking at buying. I might pay more for something that enhances a current position or extends my value to visitors.

Best,

Justin

 

[sitemaker]

You mean 18 months revenue? So a site making $2 a day would be worth (365 x $2 x 1.5 =) $1,095.00 ?

--- J.

 

[hittjw]

Yes and now, it really depends on the site.

I may look at it and see that I can lower hosting or advertising costs. If that means I'll break even in 12 months, then I'm okay with it.

Maybe I can increase the revenue using other sites I own, or some marketing that the site wasn't previously doing. This factors into my multiple.

I may consider $1,083.60 to $1,095 for a site with the NET $2 a day ($2 * 7 * 4.3 * 12 * 1.5) assuming $2 NET is accurate. If a site is 6 months old, claiming $2 NET, I might weight it differently because I know seasonal trends. Not enough samples.

An older site 60 months old may not have started earning till the 48th month, I'm going to push all the costs into determining NET, not just the ones in a 12 month revenue period.

Domain aging has value, message to market match, overlap in existing niche, and much more factors into the multiple.

I may set the multiple at 0.7 like I did on a recent site because it had potiential (good keywords, good traffic, low revenues, short revenue period).

However, even after coming up with a price, I may discount it because of what I'll need to spend to get the site up to par.

Again, my break even target is 12 months after purchase, that means I need a combination of lower costs and increased revenues early in my acquisition.

Hope this helps ... it's investing to me, any purchase must make more than I'm getting in other investments. Your multiple may be different.

Best,

Justin

 

[Focus]

generic traffic names with NATURAL type-in traffic I am paying 36 to 60+ months revenue......not website/search engine traffic though