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Old 09-23-2008, 12:55 PM   #1
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Default How to Guage a Site's Worth?

Is it true that you can sell a site for what it brings in each year??

I find this obnoxiously high.

Any tips on guaging a sites value?
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Old 09-23-2008, 01:00 PM   #2
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Default Re: How to Guage a Site's Worth?

Quote:
Originally Posted by momo3 View Post
Is it true that you can sell a site for what it brings in each year??

I find this obnoxiously high.

Any tips on guaging a sites value?
From my experience, it's usually 2-4 times yearly cash flow depending on how much work is involved to maintain the revenue and the growth of the company.

It could be up to 4 times cash flow for a very automated site with ongoing traffic from the search engines and affiliates. User generated content and an email list also help.

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Old 09-23-2008, 02:12 PM   #3
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Default Re: How to Guage a Site's Worth?

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Originally Posted by narsticle View Post
its usually 6 months gross revenue.
Gross revenue means nothing if there are no profits. I'm not sure where you got that from.

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Old 09-23-2008, 02:25 PM   #4
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Default Re: How to Guage a Site's Worth?

Yes, you can - of course it depends on the site how it is making money and how easy it is to maintain. Many sites bring more than 1X yearly.

Personally, I think 1X yearly income is dirt cheap. I wish I had been smart enough to buy existing sites that made money back when I started in this biz and had some money to invest - if I'd been smart enough to keep them up I'd be really well off now!

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