So Im Thinking Of Selling GWW...

[Lee]

At some point in the next 5 years.

If anyone wants to make an offer and get first refusals feel free to do so i warn you though, i know what its worth based on previous offers

Regards,

Lee

[gaybucks_chip]

'bout three-fiddy.

[Chilihost]

three fitty

[Chilihost]

'bout three-fiddy.

LOL good to see another sp fan posting at the exact same time!

[Squirt]

i warn you though, i know what its worth based on previous offers

Lee the $1 million Putz offered you can't be included in your list of previous offers :high:

[marcjacob]

how much is it worth?

[Lee]

Lee the $1 million Putz offered you can't be included in your list of previous offers :high:

Haha actually, i think GWW was the only board Reece didnt try buying in the industry LOL

Regards,

Lee

[Lee]

how much is it worth?

Id consider selling it for two to three times the annual revenues it generates, with some consessions

Regards,

Lee

[Squirt]

Id consider selling it for two to three times the annual revenues it generates, with some consessions

Regards,

Lee

:bananacock: >>>> insert smart ass comment here with figure under $100 <<<<:bananacock:

[chadknowslaw]

how about 4x cashflows???

[Lee]

how about 4x cashflows???

Id have to decline that offer

Regards,

Lee

[chadknowslaw]

A multiple of cash flows is usually a better indicator of value than a multiplier of revenues ~

A company with $100 in revenue and $$50 in expenses has $100 in revenue and $50 in cash flow. We just assume no depreciation or those other complex accounting functions for both.

A company with $100 in revenue and $99 in expenses has $100 in revenue and $1 in cash flow.

Which company is worth more money?? Using a multiplier of revenue values both companies evenly. Using a multiplier of cash flows gives a more accurate value. It could be 4x or 100x, but usually cash flows is a better tool for appraisal.

[Squirt]

Bah ha ha ha

:bananacock: >>>> insert smart ass comment here with figure under $100 <<<<:bananacock: he he he

A multiple of cash flows is usually a better indicator of value than a multiplier of revenues ~

A company with $100 in revenue and $$50 in expenses has $100 in revenue and $50 in cash flow. We just assume no depreciation or those other complex accounting functions for both.

A company with $100 in revenue and $99 in expenses has $100 in revenue and $1 in cash flow.

Which company is worth more money?? Using a multiplier of revenue values both companies evenly. Using a multiplier of cash flows gives a more accurate value. It could be 4x or 100x, but usually cash flows is a better tool for appraisal.

[Lee]

Chad,

The problem with valuing (isnt that spelt funny ) a product based on cash flow, especially in the online industry is that cash flow can change dramatically almost overnight before and after the sale.

Whilst i might only be paying $250 a month on hosting right now, someone who may be working with a much more expensive host could be paying $1000 a month for the same setup.

Im sure you'll agree, the cashflow that a site has right now is going to be of no use to the company or individual who potentially purchases that site because that is based on the operating expenses incurred by the original site owner.

Likewise, they may actually work a lot harder or lighter, to make a site work than its previous owner in addition to being paid a higher or lower salary/commission rate.

Whilst cash flow does need to be taken in to account when purchasing sites, ultimately, its the bottom line revenues a site generates that matters when placing a selling/buying price on an online website.

A good example of this is TYS, which i purchased for a measly $500 because it wasnt making the site owner any money.... 2 years on and its making enough money to be self-sustaining, even if i never do any real promotion of it.

For a bricks and mortar business cash flow is definately the most important aspect though

Regards,

Lee

[chadknowslaw]

Lee, I agree.

A website is a very difficult commodity to put a value on --especially one like GWW. Part of the reason there is traffic is because of how it is moderated, and if the site is sold, that would change. There are some that would love to see you sell this site and then get banned from it. :p There are others that would be very disappointed to see you leave. How would that affect the traffic and value of the board?? Hard to tell.
Either way, there are going to be a shitload of intangibles that have to be evaluated to determine a selling price for a domain, and even then that is just going to be a wild ass guess but as long as buyer and seller agree on it then happy day!
Domains sell every day for waaaaay too much and some sell for far too little. I