How do you know what to sell a site for? What are the procedures?
Anyone here have a site to sell?
How do you know what to sell a site for? What are the procedures?
Anyone here have a site to sell?
a lot of people say 6 months revenue from a stable site is the value, but i've seen guys sell sites on ebay for a LOT more. if the site doesn't have stable traffic or trades (depending on what kind of site you have), then it's often worth 3 months revenue.
if a site with exclusive content, you must figure out what the content is worth. if non-exclusive transferable content, then just add in the value of the content to the revenue for pay and premium avs sites.
When AJ was buying out Ryan (my former partner) we asked a lot of people about valuation, both adult industry and mainstream web valuation people, and got a lot of different answers.
Revenue-based models, the low end was 6 months revenue, the high end was 2 years revenue, and several people suggested a year if it was relatively stable.
Others suggested a combination of a portion of revenues plus a value for intellectual property (designs, banners, content, etc.)
Our buyout was complicated because we were at the beginning a gigantic growth phase that we had no way to value, so we ultimately came up with a combination of x amount up front and a portion of revenues for a period of time.
if you sell, be sure to either do it using escrow or else get the money wired up front. and if your site is an exclusive content site, be sure to add in the value of the content and remember it has more value than a set at maxpixels or ounique.
I agree that originial exclusive content is much more valuable then cookie cutter sites with purchased unexclusive content. When the site is in an exclusive niche that sells well, that's an added bonus as well.Originally Posted by basschick
An escrow account is a great idea.. and ads more security to the transaction. Thanks for the tip :thumbsup:
I've been hearing the same figures being thrown out.. anywhere from 6 months to a couple years. The thing I would be worried about is loosing the income from the site... and not being able to replace it quick enough with a new kick ass site that sold as well, or better.
Do you know anyone personally that was paid one years revenue, or more, for a site?
I know people that have sold their sites for a nice bit of change, I would estimate more than 1 year of revenue. People normally sell their sites because they want to get out of the business or they want to try something new - of course they will be losing their monthly income but that's not of concern when your primary goal is to move on.
cheers,
Luke
There is not a standard answer. It could be one month or five years.
For the seller it's not just about what the site itself is worth. That revenue stream is gone forever. Do they depend on that money? Does the buyout figure cover the development time of a new site that will match the lost income? Maybe the site was expendable in the first place. Especially if they own 10 sites and work is being spread too thin. In that case the sale price was free money since work can just be shifted to the other sites.
The buyer has a lot more to look at than just sales figures also. They are only relevant if the site will continue to be operated the exact same way it was under the previous owner. It's about what the buyer thinks he can do with the site in the future.
I once bought a blog for two years worth of income. I recognized that the operation of the site was a joke, and that I could get an ROI very quickly on it's level of traffic.
So the key as a seller is to find someone who thinks they can run the site better than you ever did.
I post here to whore this sig.
I've been considering this as well. Losing monthly income and hoping to come up with something to replace would be nerveracking!
What types of sites are you looking to buy?
:offtopic: Where does one look for gay sites for sale on ebay? do they come up often?
Ask Reece Dylan. He was buying lots of sites a little while back.
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:innocent: :innocent: :innocent: :innocent:Ask Reece Dylan. He was buying lots of sites a little while back.
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That really did make me LOL
Regards,
Lee
HA HA HA OMG what a way to start the morning LOL!!Ask Reece Dylan. He was buying lots of sites a little while back.
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I've got an offer from a big established program on the straight side of the business for one of my sites, that's why I made this post. Also got me thinking of maybe selling my other site and starting fresh.
I'm not looking to buy. I was asking if anyone was selling a site to see what their input was. Thanks for asking though.
Yes, my former business partner
I can't reveal the exact terms, but between the initial payouts and the ongoing payouts that AJ has made, the deal would be worth a minimum of about two years gross, and could end up being substantially more depending on our continued growth rate.
But, to be fair, part of the reason the deal was structured that way was the imminent launch of our DVD line, which we (correctly) guessed would grow to be a substantial portion of our total revenues, and the fact that Ryan sold to AJ right at the time we were beginning a significant growth phase.
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