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What Does It Take To Sell A Site for $1million

by kenneth ifeanyi
13 replies
Just read a post in a blog; viper chill and that inspired some thoughts.

What would it take to create a site,until it can be sold for $1million and how long will that take?

Your answers will be very helpful to other warriors.
Thanks in advance
#$1million #sell #site
  • Profile picture of the author kidder
    I helped create a product based site that generated about 50k per month in sales on a 5 - 10k monthly cost. The site also generated significant Adsense and Ebay earnings and after 18 months of development it was sold for $550k. Probably well under its true value considering that it's still spinning significant revenue today.
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  • Profile picture of the author rickkettner
    There are so many factors to consider, but one common metric is to value a business at 5x yearly profits. So, if you can make it profit $200,000/year (after expenses), then you could easily get $1,000,000 for it.

    Keep in mind this is just ONE metric. A potential buyer might also consider potential growth and other factors, but most entrepreneurs (trying to sell businesses) tend to dramatically over-value this sort of thing.

    Note: Selling individual sites (not full businesses) may be slightly different...
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  • Profile picture of the author travlinguy
    As has been mentioned, the idea is to get a site producing revenue and then sell it. But the multibles for online businesses vary widely. It will depend on the niche market, the popularity, the liklihood of continued sales and many other factors.
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  • Profile picture of the author howinfo
    You need a lot of traffic, site does not even have to make any money, as long as the traffic is there.

    How much traffic is worth one million that I do not know.

    Twitter is a good example, They do not make money but are worth a LOT.
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    • Profile picture of the author rickkettner
      Originally Posted by howinfo View Post

      You need a lot of traffic, site does not even have to make any money, as long as the traffic is there.

      Twitter is a good example, They do not make money but are worth a LOT.
      This isn't always true. You have to have massive potential for growth, and there are still tons of example of this going wrong (MySpace, Broadcast.com, GeoCities, and many others).
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  • Profile picture of the author kidder
    You don't always need a lot of traffic you need a revenue stream, sales, subscriptions, profits.... Its much easier to sell than potential. 10 unique visits per day is enough to make you money if your selling the right thing.
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  • Profile picture of the author Tsnyder
    howinfo makes a good point...

    I believe You Tube had never created any revenue
    when it was sold to G for 1.6 Billion.

    Tsnyder
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    If you knew what I know you'd be doing what I do...
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  • Profile picture of the author rickkettner
    Same with Broadcast.com ($5.7 billion) which is now a re-director to Yahoo.com, Geocities.com ($3.6 billion) is dead as well, and MySpace ($580 million) has lost most of it's "value". This is why investors like Warren Buffet will never touch tech companies that are valued solely on "potential" .

    That's not to say YouTube wont succeed, just that it can go either way. Buying for proven profits is typically an easier decision.
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  • Profile picture of the author yommys01
    Kent kent, so you a member here. I guess you are not about to tell innocent Nigerians you sold another site for $1million. I wonder what you gain from all these.

    I just hope you are not going to try that here cos I will be the first person to burst your ass. This post does not answer your question but I already know what you are up to.
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  • Profile picture of the author domainarama
    Any stockbroker can answer your question:

    What does it take to sell a site for $1m?

    Buy it for $2m.
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  • Profile picture of the author successfulwarrior
    Thanks warrior, that was very helpful and i know other warriors where inspired too.
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  • Profile picture of the author kenneth ifeanyi
    Yes, successfulwarrior.

    Warriors are amazing people,see such responses in just a matter of hours.Thank you warriors.The responses here are enough.

    Once again thanks
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  • Profile picture of the author jaywilsonjr
    Originally Posted by kenneth ifeanyi View Post

    What would it take to create a site,until it can be sold for $1million and how long will that take?
    A willing buyer?


    Jay
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    Got Tech Problems? PM me for quick help!

    Need a psd converted into a website? --> Check out my new offer | 1 FREE review copy left!
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