putting a Value on a Membership site - what do YOU think?

15 replies
Say you have a membership site with 120 or so members and the monthly recurring revenue is about $900... The site also generates about 25 new members a month resulting in an additional $700 in revenue.

The site has a 75% retention rate at the 4 month mark so the monthly income is still building.

What is something like that worth? (I have had an offer of $3500)

Your opinions?
#membership #putting #site
  • Profile picture of the author michael_nguyen
    Usually you multiply your monthy earnings by 8-12 months. Have you tried flippa to see the going rate (just to test)? For $3500 ? You must be having a laugh! As him/her try again.
    Signature
    {{ DiscussionBoard.errors[1364703].message }}
  • Profile picture of the author Lisa Gergets
    I agree with Michael - $3500 is WAY out of line. Being that you're still building income and the retention rate is so great even at 4 months, I'm thinking more around $10K.
    Signature
    Sign up to be notified when Success on Demand goes live, and receive a FREE mindmap that you can follow to create and launch your OWN IM PRODUCTS!
    {{ DiscussionBoard.errors[1364711].message }}
  • Profile picture of the author chrisgarrett
    It's worth whatever someone is willing to pay for it but, yeah, 12x the last 6 months average income is a usual starting point (taking into account things like original content, rights, original design templates, handover period, non-compete, yada yada)
    {{ DiscussionBoard.errors[1364941].message }}
  • Profile picture of the author Lou Diamond
    Hello,
    this thread just shows the power of membership sites.
    I would hold on to it and keep building it up.
    Signature

    Something new soon.

    {{ DiscussionBoard.errors[1365327].message }}
    • Profile picture of the author Lance K
      If you have a high retention rate and are able to keep adding new members on a regular basis, you would be a fool to sell it at even 12 x monthly profit (unless you need cash fast).
      Signature
      "You can have everything in life you want if you will just help enough other people get what they want."
      ~ Zig Ziglar
      {{ DiscussionBoard.errors[1365487].message }}
  • Profile picture of the author Lance K
    Originally Posted by winebuddy View Post

    The site has a 75% retention rate at the 4 month mark so the monthly income is still building.

    So the site is only 4 months old, correct?
    Signature
    "You can have everything in life you want if you will just help enough other people get what they want."
    ~ Zig Ziglar
    {{ DiscussionBoard.errors[1369013].message }}
    • Profile picture of the author winebuddy
      Originally Posted by Lance K View Post

      So the site is only 4 months old, correct?
      The site is actually almost 2 years old - but I changed to a membership format 4 months ago. I put all of my original purchasers into the membership for no extra cost.

      The new sales and membership recurring billing are what is generating the revenue.
      Signature
      "Knowledge is NOT power... ACTION on Knowledge is power"
      {{ DiscussionBoard.errors[1373346].message }}
      • Profile picture of the author Jays80
        so, basically revenue is coming from new members only. Is 75% retention rate for paying members? I would rather keep it going for a year of so before try selling, Assuming its evergreen niche, and does not require lot time from your end.

        Also how about a inbuilt affiliate program, if already not in place?




        Originally Posted by winebuddy View Post

        The site is actually almost 2 years old - but I changed to a membership format 4 months ago. I put all of my original purchasers into the membership for no extra cost.

        The new sales and membership recurring billing are what is generating the revenue.
        {{ DiscussionBoard.errors[1373789].message }}
  • Profile picture of the author milan
    You don't say how much work is required. Do members get something new every month?
    {{ DiscussionBoard.errors[1373736].message }}
    • Profile picture of the author j0s3
      ---
      It's worth whatever someone is willing to pay for it (chrisgarret)
      ---
      There's your answer.


      I'm with Lou on this one though: you have a very good stick rate at the 4 month mark!
      I'd hang on to that site ($700 new money each month is excellent!)
      {{ DiscussionBoard.errors[1373780].message }}
      • Profile picture of the author Lance K
        Originally Posted by j0s3 View Post

        ---
        It's worth whatever someone is willing to pay for it (chrisgarret)
        ---
        There's your answer.

        Only if you need or want to sell. True market value is determined when a willing buyer and a willing seller come to terms. So the "whatever someone is willing to pay for it" theory is only valid to a certain extent. Just because some lowballer is willing to pay $500 for a site worth 10 times that doesn't make it worth $500.
        Signature
        "You can have everything in life you want if you will just help enough other people get what they want."
        ~ Zig Ziglar
        {{ DiscussionBoard.errors[1376098].message }}
        • Profile picture of the author j0s3
          I was quoting Chris Garret

          But yes, that's also a good point.

          Moreover, true market value is ALSO determined by scarcety.

          Yesterday I paid £1.45 to send a fax from a library in Glasgow to an office in London. That's almost $2 for 1 damn page.

          That's not the true value of faxing. It's the extortion that can be leveraged by scarcety or a need in the market.

          If your site is one-of-kind, or better, one of the top in its field... then your value increases.

          Funny thing, value and perception...
          {{ DiscussionBoard.errors[1378986].message }}
          • Profile picture of the author j0s3
            I'll give you £1.45 for your site
            {{ DiscussionBoard.errors[1378989].message }}
            • Profile picture of the author Jim Symonds
              I have read in numerous places the value is 20 times monthly earnings.

              Flippa seems to be THE PLACE to sell, regardless.

              I recommended it to a client, and he had his membership sold in no time.


              Regards,
              Jim
              Signature

              Run Your Own Direct Sales MLM Company ==> https://DirectSalesMLM.com

              {{ DiscussionBoard.errors[1384606].message }}

Trending Topics