standard for selling developed sites right now

[lindmar]

What is the standard for selling websites? I never ever seem to hear a definiative answer.

let say I have a site that makes 7k per month , 6k profit after expenses..

What would be the standard to list at?

I've read - 24 months revenue, 36 months revenue....

 

[SouthernTn]

some people list at 12 - 15 - 18 - 24 - + Those are the numbers ive seen the most

 

[4u-domains]

The extent of the income mulitple is deduced from many factors, most hard to pinpoint such as with domain appraisals. The prospective owner is going to need to know how stable is the income and for how much longer they can realistically count on it continuing.

Significant factors in deciding a fair mulitple, in no particular order are;

Quality of domain. Domains are assets on the balance sheet.
Seasonal affect on income (is the income proven over 2 years to prove a proper average). How far can you go back with the income. It may help influence a buyer's willingness to reach a certain price.

Perceived longevity of the product or service. i.e. is is Playstation2 based or based on technology that may be made redundent.

Time and effort on maintenance should be taken into account, not just expenses.

Has it got a solid, growing or stagnating paid membership.

Is the site based on solid, imherent foundations. i.e. if you sell the site will 2000 links, leads and sponsorship suddenly disappear.

How much work and help are you willing to put into the transition of ownership.

Are you going to set up a rival site as soon as you sell the other one.


If you have all the answers to the above you can justifiably ask for much more than 2 years IMHO.
On the flipside, if you feel the market segment is slipping away then settle for a lot lower multiple.

 

[LeeD]

In today's market place you are doing well to get 15-18 months of revenue. I had a recent site of mine, a very stable site that has been online almost 5 years only get bigs for 14-15 months of revenue. Hard to find the right buyer sometimes...

 

[Rarethings]

all depends on the buyer. And if the income is stable.

The average investor will pay 6-8 months, unless he/she really wants the site for more than a small ROI, in which case it will usually be 1 year- 4 years revenue. (4 years if they REALLY want the site).

Look at similar sales.

Pricegrabber just went for 485$ million, myspace.com a while ago for 580$ million.

In short, it depends on the site.

 

[Steen]

Look at similar sales.

Pricegrabber just went for 485$ million

Wow, I am surprised it went for more than $10M, lol.

 

[SouthernTn]

It depends on the site.. For an example a forum.. If the forum has been up for years and has been making money recently, I dont see why no one wouldnt pay 2x's the yearly profit = 24 Months. When I sale mine, im shooting for 18 - 24 Months.

 

[dcristo]

What is the standard for selling websites? I never ever seem to hear a definiative answer.

let say I have a site that makes 7k per month , 6k profit after expenses..

What would be the standard to list at?

I've read - 24 months revenue, 36 months revenue....

There's many things you should factor in, but typically most sites will sell for anywhere between 6-12x monthly profits. Sometimes more but the site would have to be something special.

 

[mike031]

~12 month's should be good. maybe a little more if you have something really unique with some history behind it and a great track record.