How much to sell website for?

Ben Chin · 11-13-2008, 11:51 AM

Warriors, I really need your help.

I and 5 other close friends (most whom are new to internet marketing) recently started an equal partnership to which we produced and successfully launched a product.

However, things got really sour between us and trust me when I say, it is hard to work efficiently with friends! We are at the point that in order to save our friendship, we need to sell the site.

This is where our dilemma lies. We launched the product on the first week of October. So far it has only been 1 and a half months or so since the product went live.

We managed to get some strong JV’s therefore at $48 per guide, we raked close to $4k in the first month with no traffic. And, for November, sales are going steady at around 130 a day, which means a projected income of 4000 a month (at least for November) or more. This is because we also have a list of around 1.5k subscribers which we backend other guides. Traffic has ranges from 150 to 250 a day. However, recently there have been other affiliates trying to promote us and the traffic fluctuates but never drops down to 100 or less.

We simply want to sell the site but we are not sure as to how much can we fetch or how or where to do it. What are the usual standards? Also, we fear that because we only have 1 or 2 months of data, buyers will be weary.

This is a very profitable gaming niche (World of Warcraft) to which we feel that it the potential is huge, as a new expansion just launched today (which the guide is already updated for). We actually have a couple for JV’s lined up but we are not sure what our next step should be.

Obviously we hope to sell it for a good price because we all put it alot of hard work in it and its unfortunate that it has come to this.

I hope that some experienced warriors can to shed some light in this matter!

Thanks

Ben Chin · 11-14-2008, 12:24 PM

Anyone? We just want to know where to sell and what are our chances of fetching a price that is high as there is huge potential.

Shane Hale · 11-14-2008, 12:29 PM

Wow that is something I have been looking for event or partner I bought Wrath of the Lich King for the latest release. At 4k a month I would be willing to partner on a non friendship basis. I would love to talk about this in private with you. Thanks Shane

TomLeDree · 11-14-2008, 12:30 PM

Sitepoint.com has a marketplace where you can sell your website.

Have a look for sites making a similar profit and see what they are going for.

Shane Hale · 11-14-2008, 12:32 PM

I would even entertain the possibility of buying this domain as well

TomLeDree · 11-14-2008, 12:42 PM

Sitepoint charges a fee depending on which category you wish to sell your site in.

If you visit their website you can find out all the details.

Ben Chin · 11-14-2008, 12:43 PM

Hi Shane. Yup this are going great and there is huge potential. However its just that we all have fallen out and we are looking to try to put the past behind us.

We are looking to sell the whole business not the domain only unfortunately

As for sitepoint I have been checking it out regularly. MY only fear is that with the little stats I have no one would trust us. Or am I just thinking too much?

tommygadget · 11-14-2008, 12:49 PM

This is exactly why I don't involve friends in business. As to your first question, make one person responsible for the sale of the business. I would simply allow the site to age for another couple of months to get a history. Anyway, sites in this economy could net you about 8x to 12x monthly income. You MUST prove the traffic sources and income, though. Make sure prospective buyers sign a non-disclosure agreement to keep them from stealing your ideas/sources.

TomG.

Ben Chin · 11-14-2008, 01:20 PM

Hm, what do you exactly mean john? haha.

Well if you need any info feel free to PM me.

Thanks tommy for your insights. Yeah, they decided that I should be the one in charge of selling haha. We know this wont be an instant sale(unless we are lucky :P) so it will definitely drag on for some months.

Usually how do people set a price for a site based on "potential?"

alyoung · 11-14-2008, 04:12 PM

It looks like the sale of this site is based upon actual revenues which you have. As a starting point it could be valued at 10-15 times monthly revenue. Probably on the high end for World of WarCraft.

If this is done with no marketing the potential is great and you have to sell/negotiate how much more it could be worth to the right person.

Ryan Dodson · 11-14-2008, 04:21 PM

If you're going to sell your site in the Sitepoint Marketplace, make sure to set your BIN at your current net income x 12 months at least.

Given the other features you have, you could most definitely go higher.

jazzyjeff · 11-14-2008, 04:44 PM

From what I have heard, any site should be worth about 6 to 12 months worth of income. Since your site earns about 4000 per month, you should be expecting anywhere between $2,500-5,000 for your site. Good luck in the sale Ben. It is an inspiration to know that you are new and have had success in internet marketing.

11-13-2008, 11:51 AM	#1
Ben Chin Active Warrior Join Date: Mar 2007 Location: , , . Posts: 83 Thanks: 0 Thanked 0 Times in 0 Posts	How much to sell website for? Warriors, I really need your help. I and 5 other close friends (most whom are new to internet marketing) recently started an equal partnership to which we produced and successfully launched a product. However, things got really sour between us and trust me when I say, it is hard to work efficiently with friends! We are at the point that in order to save our friendship, we need to sell the site. This is where our dilemma lies. We launched the product on the first week of October. So far it has only been 1 and a half months or so since the product went live. We managed to get some strong JV’s therefore at $48 per guide, we raked close to $4k in the first month with no traffic. And, for November, sales are going steady at around 130 a day, which means a projected income of 4000 a month (at least for November) or more. This is because we also have a list of around 1.5k subscribers which we backend other guides. Traffic has ranges from 150 to 250 a day. However, recently there have been other affiliates trying to promote us and the traffic fluctuates but never drops down to 100 or less. We simply want to sell the site but we are not sure as to how much can we fetch or how or where to do it. What are the usual standards? Also, we fear that because we only have 1 or 2 months of data, buyers will be weary. This is a very profitable gaming niche (World of Warcraft) to which we feel that it the potential is huge, as a new expansion just launched today (which the guide is already updated for). We actually have a couple for JV’s lined up but we are not sure what our next step should be. Obviously we hope to sell it for a good price because we all put it alot of hard work in it and its unfortunate that it has come to this. I hope that some experienced warriors can to shed some light in this matter! Thanks

11-14-2008, 12:24 PM	#2
Ben Chin Active Warrior Join Date: Mar 2007 Location: , , . Posts: 83 Thanks: 0 Thanked 0 Times in 0 Posts	Re: How much to sell website for? Anyone? We just want to know where to sell and what are our chances of fetching a price that is high as there is huge potential.

11-14-2008, 12:29 PM	#3
Shane Hale Ninja Warrior War Room Member Join Date: Jun 2008 Location: Anderson, South Carolina , USA. Posts: 467 Blog Entries: 11 Thanks: 104 Thanked 57 Times in 40 Posts Social Networking Contact Info	Re: How much to sell website for? Wow that is something I have been looking for event or partner I bought Wrath of the Lich King for the latest release. At 4k a month I would be willing to partner on a non friendship basis. I would love to talk about this in private with you. Thanks Shane
	My Warrior Forum Blog WSO:LOCAL CRUSHER CASH FLOW NINJA MONTHLY

11-14-2008, 12:30 PM	#4
TomLeDree Warrior Member Join Date: Nov 2007 Location: England, UK Posts: 23 Thanks: 12 Thanked 2 Times in 2 Posts	Re: How much to sell website for? Sitepoint.com has a marketplace where you can sell your website. Have a look for sites making a similar profit and see what they are going for.
	Last edited by TomLeDree; 11-14-2008 at 12:30 PM. Reason: typo

11-14-2008, 12:32 PM	#5
Shane Hale Ninja Warrior War Room Member Join Date: Jun 2008 Location: Anderson, South Carolina , USA. Posts: 467 Blog Entries: 11 Thanks: 104 Thanked 57 Times in 40 Posts Social Networking Contact Info	Re: How much to sell website for? I would even entertain the possibility of buying this domain as well
	My Warrior Forum Blog WSO:LOCAL CRUSHER CASH FLOW NINJA MONTHLY

11-14-2008, 12:42 PM	#6
TomLeDree Warrior Member Join Date: Nov 2007 Location: England, UK Posts: 23 Thanks: 12 Thanked 2 Times in 2 Posts	Re: How much to sell website for? Sitepoint charges a fee depending on which category you wish to sell your site in. If you visit their website you can find out all the details.

11-14-2008, 12:43 PM	#7
Ben Chin Active Warrior Join Date: Mar 2007 Location: , , . Posts: 83 Thanks: 0 Thanked 0 Times in 0 Posts	Re: How much to sell website for? Hi Shane. Yup this are going great and there is huge potential. However its just that we all have fallen out and we are looking to try to put the past behind us. We are looking to sell the whole business not the domain only unfortunately As for sitepoint I have been checking it out regularly. MY only fear is that with the little stats I have no one would trust us. Or am I just thinking too much?

11-14-2008, 12:49 PM	#8
tommygadget Banned War Room Member Join Date: Jun 2007 Location: Up North, USA Posts: 2,517 Blog Entries: 11 Thanks: 88 Thanked 288 Times in 157 Posts Social Networking	Re: How much to sell website for? This is exactly why I don't involve friends in business. As to your first question, make one person responsible for the sale of the business. I would simply allow the site to age for another couple of months to get a history. Anyway, sites in this economy could net you about 8x to 12x monthly income. You MUST prove the traffic sources and income, though. Make sure prospective buyers sign a non-disclosure agreement to keep them from stealing your ideas/sources. TomG.

11-14-2008, 01:20 PM	#9
Ben Chin Active Warrior Join Date: Mar 2007 Location: , , . Posts: 83 Thanks: 0 Thanked 0 Times in 0 Posts	Re: How much to sell website for? Hm, what do you exactly mean john? haha. Well if you need any info feel free to PM me. Thanks tommy for your insights. Yeah, they decided that I should be the one in charge of selling haha. We know this wont be an instant sale(unless we are lucky :P) so it will definitely drag on for some months. Usually how do people set a price for a site based on "potential?"

11-14-2008, 04:12 PM	#10
alyoung Active Warrior Join Date: Aug 2008 Posts: 78 Thanks: 4 Thanked 5 Times in 5 Posts Social Networking	Re: How much to sell website for? It looks like the sale of this site is based upon actual revenues which you have. As a starting point it could be valued at 10-15 times monthly revenue. Probably on the high end for World of WarCraft. If this is done with no marketing the potential is great and you have to sell/negotiate how much more it could be worth to the right person.

11-14-2008, 04:21 PM	#11
Ryan Dodson Advanced Warrior War Room Member Join Date: Mar 2007 Location: Washington, DC, USA. Posts: 542 Thanks: 22 Thanked 10 Times in 9 Posts	Re: How much to sell website for? If you're going to sell your site in the Sitepoint Marketplace, make sure to set your BIN at your current net income x 12 months at least. Given the other features you have, you could most definitely go higher.
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11-14-2008, 04:44 PM	#12
jazzyjeff HyperActive Warrior War Room Member Join Date: Nov 2008 Posts: 192 Thanks: 3 Thanked 13 Times in 12 Posts	Re: How much to sell website for? From what I have heard, any site should be worth about 6 to 12 months worth of income. Since your site earns about 4000 per month, you should be expecting anywhere between $2,500-5,000 for your site. Good luck in the sale Ben. It is an inspiration to know that you are new and have had success in internet marketing.