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  1. #1
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    Hi, everyone

    I am new to price a site, and would like to hear your suggestion or comments on a site that

    1.Generate almost US$2000 -US$2500 affiliate commissin earning per month;
    2.Receiving about 3000 - 4000 unique IP visitors from google, and 2000 -2500 ips from other SE or site links,so totally 6000 IPS per day;
    3.The site is up for one year;

    If you need more information to price it, please let me know,I will appreciate any of your kind comments!

    best regards!
    Alexandra

  2. #2
    Affiliate Manager
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    a general rule for websites is 3 to 6 times monthly income, in this case $6,000 to $15,000.
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  3. #3
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    There is a lot of controversy on this subject.

    One rule of thumb I used to see was 6 months worth of earnings.

  4. #4
    ABW Ambassador Snib's Avatar
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    I've seen sites sell for as much as 24x their *potential* monthly income. I certainly wouldn't sell a $2k/month website for anything less than $20k just because I'll make that money in less than a year if things continue to go well. I've never heard of selling a site for as low as 6 months worth of income, but maybe these are just numbers for affiliate sites.
    Hatred stirs up strife, But love covers all transgressions.

  5. #5
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>a general rule for websites is 3 to 6 times monthly income, in this case $6,000 to $15,000 <HR></BLOCKQUOTE>

    Where is this general rule? I sold a site for 200x monthly revenue. There are no rules.

  6. #6
    ABW Ambassador phillyburbs's Avatar
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    MJCB:

    If someone offered us 200x our monthly revenue, I believe we'd be interested in selling!

  7. #7
    http and a telephoto
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    I would think pricing would involve more than traffic and income currently generated, what about topic, content, and longevity? A site that is targeted for a product that could be regulated or based on one or two merchants that could go under would be priced differently than one with a more general base and diverse merchants.

    But that's my opinion, no facts to back it up.
    Deborah Carney
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  8. #8
    ABW Adviser Panel Dynamoo's Avatar
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    The most commonly quoted figure I've heard is 12 months revenue, but as loxly says, the actual value depends on all sorts of different factors.

    Looking at the information you've given, then if the site is the result of a year's work, then 12 months income is too much to pay. However, you've got a big chunk of non-Google traffic which is good as shows that the site isn't reliant on just Google.

    Let's look at this from a risk point of view.. if Google decides to stop sending you traffic, then you would lose 60% of your traffic, which would potentially take the base earnings down to $1,000 a month. To me, I'd be pretty confident then that $12,000 would at least break even over the course of a year.

    Of course, the your Google ranking could go up or stay the same, but recent Google changes would make me think that once all the probabilites have been taken into account, then it's likely (in the overall balance of probabilities) that Google traffic will decrease and your average income will be about $1750 per month or $21,000 dollars per year. I want a 33% return on my investment, so that might value the site at around $16,000.

    But again.. it depends on the details of the site and a whole bunch of other factors that you can't determine from simple statistics.
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  9. #9
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    I would NEVER sell my own site for just 6x or 12x or 24x of monthly income - all the more so since the sites income trend and traffic continues to rise.

    But, my site is a content site - so a ton of work went into putting it up - which also explains its stability in the SE's and lots of return traffic.

    I do think it is hard to price a site. All sites are different. As are the potential earnings of a site.

    In the "real world", it is not uncommon to sell larger, profitable businesses for a price based on 120 months of pre-tax profit. While I don't think a website would qualify for that type of premium, it seems to me that selling a website that makes $1000 per month for only $12,000 is a really good bargain for the buyer (assuming the site is legitimate and relatively stable in the SE's).

    Now, 200x monthly earnings - that may be a different story in getting me to sell my site!

  10. #10
    Full Member markschok's Avatar
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    200x monthly earnings ?

    This is 16 years 8 months or am I wrong ?

    16 years earnings on a web site ?

    Who know whats the nets going to look like in 16 years ? Who's going to be running the show then ? Me ?

  11. #11
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    And of course there's the situation where a site is ranked well in the SE's but it's only because the site owner has a bunch of links to it from his/her other sites. As soon as you buy the site all backlinks could be removed.

  12. #12
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    A lot would depend on the type of website.

    If it is a merchant site that is well established and has a good affilliate base for steady traffic. It should be worth a year's income.

    An affilliate publisher's site, on the otherhand, is only as good as the person who created it. Unless that person continues to work for the purchaser, the site has a very good chance of flopping.

    Now... Why would I, as a publisher, want to sell a successful site and remain as an employee, when I can make more money owning it?

    And if I am selling a site because it is not working, how could I entice anyone to buy it?

    The only real asset would be the site name.

    Of course this is only my humble opinion.

    Cow Patch...

  13. #13
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Who know whats the nets going to look like in 16 years <HR></BLOCKQUOTE>

    Yeah, you see the valuation assumption a lot of people make is that the website is sold as a business, and then carried on as exactly the same business. If that was always the case, all undeveloped domain names would sell for the price of the registration fee.

    A website is business, real estate and traffic junction. When you introduce the real estate and traffic junction elements, valuation becomes a different story.

    The site I sold for 200x monthly income had a lot of traffic I hadn't monetized (for whatever reason) but someone else could.

  14. #14
    mega crap martyogelvie's Avatar
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    I am waiting on Jerry Jones (Dallas Cowboys owner) to make me an offer!

  15. #15
    Moderator MichaelColey's Avatar
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    I wouldn't let my sites go for less than 10x ANNUAL profit. I guess I'll probably never get a buyer (not that I'm looking).

    On the stock market, companies are typically valued at 10, 20, or 30 times net profit.
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