Quote Originally Posted by xenigo View Post
Do you know what businesses sell for Max? They sell for what people are willing to pay for them. Let's see you demonstrate your "from what I've heard" theory, and buy this persons business for $4000-5000 bucks.

Go back to business school, Max. Please head over to Barnes and Noble right this second, and pick up a book on acquiring a business. Read it. Educate yourself. Come back after you've figured out what money making establishments online sell for in the real world.
Actually, Noah, Max isn't that far off of the low end for membership sites. When AJ was acquiring Ryan's interest in MRC a couple years ago, we made a lot of inquiries about valuation for online businesses. The responses we got back, from people who had paid for professional valuations, or actually purchased membership sites, ranged from 4 months to 24 months of gross revenues, depending on how well established and marketed the website was.
Alternative valuation methods we were given included net over 3 years (assuming it is stable or growing) plus a value for content and other intellectual property and a number of other things.

I have a friend who purchased a small paysite for about 4x monthly gross and both buyer and seller were happy. I think that Max thought this was a membership site rather than a physical product store, and if it was, given the flat sales between years 2 and 3, and not including the value of the physical property (DVDs) the price quoted would be low for sure, but not totally out of the ballpark.