developed PR6, 18,000 uniques avg. month, Profitable

[coolfishinggear]

I'm concidering selling my website www.cheapnovelty.com . I have dropshipping, affiliate, and ad revenue. Approx. $1500-2000+ (varies) month net profit. Lots of room to grow! Hosted through bizhosting.com . Low hosting costs. Revenues are in the mid $XX, XXX per yer. Average 18,000 unique visitors a month. A PR6 and many links.

I'm starting a family and need to buy a new house.

I've been advised that 4-5x yearly revenues would be an appropriate asking price. If this is so site is worth low to mid $XXX,XXX range. This site has tons of potential.

Please PM me offers with min. high $ XX,XXX + range and or questions.

 

[serra]

For that asking price, are the products included on the sale?
What's your inventory worth?

 

[nicorlino]

4-5 times yearly revenue seems a bit high. Usually it is more like 2-3 times yearly revenue. But that is just my experience.

Best Regards
Nico

 

[coolfishinggear]

2-3 times yearly revenue, would still put this site in the low $xxx,xxx range for value. I'm asking for offers in the high $xx,xxx range to low $xxx,xxx. My margins are very nice, high %. Also there is no inventory needed, drop ship. Site has been running for 2.5 yrs.

Thanks to all the responders!

 

[mccollin]

I think you've been given bad advise on pricing. 4-5 times yearly "revenue" would really be a stretch and I doubt you'd get anywhere close to that. The metric that is usually used to value a site is yearly "profit", not "revenue". Depending on the site, this may or may not be a big difference. Some content sites make all of their income from advertising, and their only cost is hosting. In this case, revenue nearly equals profit. In your case, there is probably a huge difference between revenue and profit. You have credit card fees, hosting cost, shipping cost, cost of returns, and other business expenses. All of that is taken from your margin or gross profit percentage of sales. You also have to consider the value of inbound links, the domain, and where the traffic is coming from (i.e., does the owner subsidize the traffic). If you are willing to sell in low $xx,xxx, then I would like to find out more and see history on sales/profits via PM.

 

[coolfishinggear]

My margin is quite high. As stated above the site generates profit of between 1500-2000+ a month. Some months are higher then the $2000. Also this site has great PR and very nice visitor volume(see above). The room for growth potential is also enourmous due to the industry and type of products that could be indexed. Now even if you use 3, 4 or 5 x times yearly Profit you are still looking at high $xx,xxx value to low $ xxx,xxx value. It would be very foolish for me to sell the site in the low $xx,xxx when it generates more in profit yearly for me then that figure.

I do agree with you the 4-5x rev's. Is wrong. Profit should be used. Thanks for the great reply.

 

[coolfishinggear]

Thanks for all the great PM's. I've had some very nice offers. Not quite what I'm looking for but keep them coming!

 

[jtooder]

How does the site get its traffic? Is it paid traffic? through free search engine visitors?

All this matter cause with the volatile search engine industry nothing is guaranteed. Thats why 4-5 years of anything is risky.

 

[coolfishinggear]

free search engines,, a little paid, and outside links. And I'm looking for 3-4 times yearly profit. Thanks

 

[coolfishinggear]

Due to the numerous PM's I'm posting this to answer the questions. Yes I'm still entertaining offers on the site. Thanks!

 

[coolfishinggear]

Still taking offers! Thanks to the many that have expressed interest!

 

[insomnia]

Question: Do you keep your own inventory?

 

[serra]

I think he answered that. He drop shipped it which I think he meant that he call the supplier to ship directly to the buyer. So you basically get only web content & domain. Correct me if I am wrong.

 

[mud]

Looks like a cool site.

Btw, your "april coupons" image is dead :dead:

 

[coolfishinggear]

Yes I know,, Updating that coupon. Thanks... yes a very low maintance site!

 

[coolfishinggear]

bump

 

[ZaZZeR.com]

My margin is quite high. As stated above the site generates profit of between 1500-2000+ a month. Some months are higher then the $2000. Also this site has great PR and very nice visitor volume(see above). The room for growth potential is also enourmous due to the industry and type of products that could be indexed. Now even if you use 3, 4 or 5 x times yearly Profit you are still looking at high $xx,xxx value to low $ xxx,xxx value. It would be very foolish for me to sell the site in the low $xx,xxx when it generates more in profit yearly for me then that figure.

I do agree with you the 4-5x rev's. Is wrong. Profit should be used. Thanks for the great reply.

I am confused. $1500 per month times 12 months = $18k profit

$2000 per month times 12 months = $24k in profit per year and you said "It would be very foolish for me to sell the site in the low $xx,xxx when it generates more in profit yearly for me then that figure."

Are those not low $XX,XXX figures? So let's say that you profit $24k per year on average and you were to get 3 years profit for the site. That equals $72k. That is the highest value that I would be able to place on your site, but I think a better value is about $40-45K. Just my opinion of course and that also would depend on the value of all the sites linking to your site. Are they going to keep you linked? Are they relevant link partners? Are they stable or will they be out of business in 2 months and drop your profit $5k per year? If 90% of your traffic were search engine traffic, I could see $75k+ as a nice selling price, but without, I think you will be lucky to get $40k. Just my opinion of course and no offense intended.

 

[gph]

Most developed sites that I've seen sell on forums like these have sold for no more than 6-10 times the MONTHLY profits. Just an FYI.

gph

 

[peter]

yes

not way someone will pay 5 times YEARLY profit for this

great site though

 

[coolfishinggear]

yes

not way someone will pay 5 times YEARLY profit for this

great site though

I'm not looking for 5 times the yearly profit. I was looking for 3-3.5. Also 90 of the traffic does come from search engines.