How to Guage a Site's Worth?

[momo3]

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?

[Ron Douglas]

Originally Posted by momo3

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.

[Ron Douglas]

Originally Posted by narsticle

its usually 6 months gross revenue.

Gross revenue means nothing if there are no profits. I'm not sure where you got that from.

[cashcow]

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!

Lee