My site is making $500 - $1000 per month - How much is it worth?

31 replies
I know the answer to this is like a piece of string but I would really appreciate the views of the members here.

I am thinking about selling my site as I want to invest the money into a bigger IM venture.

Its currently making $500-$1000 per month but its only 4 months old. Its getting a steady stream of traffic and is making money through eBook sales.
So I would sell the site along with the ebook and rights.

How much do you think I could get for it on Flippa?
#$500 #making #month #site #worth
  • Profile picture of the author Ti
    I've bought and sold many websites, some in the millions of dollars. I can say with all sincerity that the value is only set by the potential buyer.

    What one buyer could do with a website may be entirely different than what another buyer could do. For example, BuyerA could buy a website, throw it into their "machine" and crank out $XXXXX/mo cash, whereas a smaller BuyerB could only make $XXX/mo cash.

    With that said, you would want to do a standard EDITBA evaluation, as well as examine your market, your competitors, basic SWOT analysis. Then examine who your potential buyer could be, and what your site could do for them. Then, on a per-buyer basis, try and assemble a natural and realistic price tag. Then summarize and average that price tag and use that as your overall opening bid price.
    Signature

    Affiliates Wanted --> http://Pwnboxer.com <-- Promote to your MMORPG/World of Warcraft Niche
    Insanely Popular Software Lets You Play 5x WoW+ On 1 PC - 100% Legit Bliz Approves Multiboxing
    Current Affiliate Stats: June 4th 2011: EPC = $3.50, Conversions = 10.2%, $23.50/sale

    {{ DiscussionBoard.errors[3323997].message }}
  • Profile picture of the author jtie
    Unless you need cash now for rent or food im going to say you will regret flipping it. I would say you could get anything from $3000+ but you could just come up with 3 or 4 sites based on the blueprint of your current one and be earning $2k+ a month and invest those earnings..?
    {{ DiscussionBoard.errors[3324009].message }}
  • Profile picture of the author auradev
    All businesses (websites included) are sold for a multiple of their annual earnings.

    You could expect 1.2 to maybe 3x tops.

    Of course the site is worth only what the buyer is willing to pay, and of course someone might be able to leverage the site in a way you can't in order to make way more money (so that person might be willing to pay 4x or 6x).

    But here is the deal - even if there is someone willing to pay 10x or 20x, if the next nearest offer is 3x, then you'll probably get just over 3x.
    {{ DiscussionBoard.errors[3324119].message }}
    • Profile picture of the author E. Brian Rose
      Originally Posted by auradev View Post

      All businesses (websites included) are sold for a multiple of their annual earnings.
      That is not the truth.

      You could take two different businesses that each make $1000 a month and they could sell for very different prices. Business A might require 60 hours a week to be devoted to it, while Business B only requires 10 hours a week. Which would you pay more for?
      Signature

      Founder of JVZoo. All around good guy :)

      {{ DiscussionBoard.errors[3324339].message }}
    • Profile picture of the author Hamida Harland
      Originally Posted by auradev View Post

      All businesses (websites included) are sold for a multiple of their annual earnings.

      You could expect 1.2 to maybe 3x tops.
      If only that were true.

      I've sold many sites on Flippa, and I can safely say that a site with only 4 months of history would usually make about 4-8x monthly income. You could get lucky of course (I would put a BIN of about 12x monthly income) but based on my own experience it's unlikely you'd make that much.

      I don't know why a buyer would pay 1.2 - 3x annual income for a site with so little history.
      Signature
      {{ DiscussionBoard.errors[3326598].message }}
    • Profile picture of the author SFitzpatrick
      Originally Posted by auradev View Post

      All businesses (websites included) are sold for a multiple of their annual earnings.

      You could expect 1.2 to maybe 3x tops.

      Of course the site is worth only what the buyer is willing to pay, and of course someone might be able to leverage the site in a way you can't in order to make way more money (so that person might be willing to pay 4x or 6x).

      But here is the deal - even if there is someone willing to pay 10x or 20x, if the next nearest offer is 3x, then you'll probably get just over 3x.
      This forumula as a rule of thumb is correct in bricks and mortar business - the multiplier is your profit only, not turnover. So if you're turnover is $1000 p/m you need to deduct expenses then multiply by between 1.2-3. Generally as a rule most investing in a business will want a return on their money within 3 years, so 1.5-2 as a multiplier is more feasible.

      If you have IP along with the product (say software, patents etc...) then that would require a different valuation.
      Signature

      James Schramko Shares His Proven Online Sales System In This Podcast Episode

      {{ DiscussionBoard.errors[3326639].message }}
  • Profile picture of the author RyanT
    Originally Posted by NikkiDelgado View Post

    I know the answer to this is like a piece of string but I would really appreciate the views of the members here.

    I am thinking about selling my site as I want to invest the money into a bigger IM venture.

    Its currently making $500-$1000 per month but its only 4 months old. Its getting a steady stream of traffic and is making money through eBook sales.
    So I would sell the site along with the ebook and rights.

    How much do you think I could get for it on Flippa?

    I'd say $2,000-3,000 but you never really know. You could quadruple that. I've seen sites that make $1k a month sell for $10k. Although I've also seen sites that make a few thousand sell for exactly what they make a month.

    It's a tough game to play but play it right and you will always AT LEAST profit.

    My real advice would be to create several of those sites and keep them for a while. That way you'll end up making let's say $5k a month from your sites alone.

    Once they gain some age they will DEFINITELY sell for 3 or more times what you are making from them.
    {{ DiscussionBoard.errors[3324157].message }}
  • Profile picture of the author Race2Millions
    I would say it depends on the niche if its evergreen and if the site can maintain that income with no further work.

    If the site is a passive money tree I would say at-least 10k easily.
    {{ DiscussionBoard.errors[3324171].message }}
    • Profile picture of the author AprilCT
      My choice would be to save the site for yourself. Scale it up, build more with what works. You get to keep the sites and the income, and that income pays for your next endeavor.

      If you are sure of the income continuing, why not borrow the money you need now, and let your site pay the loan. If it's too much to handle with a new endeavor in IM, structure your loan payments lower so you can also pay someone to do the work and still keep it.

      If you really want to sell it, I can't help because of no experience doing it.

      My thoughts above are off topic for your question, but possibly something you might want to consider.
      {{ DiscussionBoard.errors[3324325].message }}
  • Profile picture of the author Coby
    I've seen similar sites on flippa selling for 1,000-6,000.

    I think 2K-3K is a reasonable assumption. I would "plan" on making that much. if you need more than 2K than I would just duplicate the sites in another niche, rinse and repeat.
    {{ DiscussionBoard.errors[3324347].message }}
  • Profile picture of the author garraye34
    Keep it for one year, your asking price would be dependent on how much detail you provide to potential buyers. The fact that you make 500-$1000 is great. However, if there's proof, you could rake in 5000-7k with no question asked.
    {{ DiscussionBoard.errors[3324401].message }}
  • Profile picture of the author Kezz
    There's a couple of questions that I've found determine the price you can sell a site for on Flippa or here at the "Complete Sites For Sale" section (which is better than Flippa in many ways).

    The old 10 - 12 times monthly earnings usually only applies if the site has been running for 10 - 12 months or more. If not, the price tends to naturally find its way to: months running X average monthly income.

    So if your average across the four months is $500 - $1000 I'd expect around $2000 - $4000.

    The other major factor is how much time is required. If a site is on complete autopilot the amount you can get for it can as much as double.

    And monetization methods are another big one. People seem to go bananas for AdSense revenue even if it's only small. ClickBank revenue goes well too, so if that's where your Ebook sales are coming from you're in good form.

    Bottom line, yes I think you could raise enough from a sale at this point to make it worth your while and help you kickstart your new venture. You can always set a reserve or sell here at the WF on your own terms so nothing ventured nothing gained.
    {{ DiscussionBoard.errors[3325318].message }}
  • Profile picture of the author Dash Evra
    Personally, I'd say not to sell that site. If it's making $500/month already, then just be patient with you "bigger venture." It's best to just save those revenues from your current site so you could invest in that future project later on.

    But, if you feel the need of flipping it anyway, I'd say it could get anywhere $3000 - $5000 on Flippa.
    {{ DiscussionBoard.errors[3325346].message }}
  • Profile picture of the author paulie888
    If your site makes $500-$1,000 a month (net) and produces this income with minimal maintenance and promotion, then I think it'd be safe to expect somewhere in the range of 5X - 10X monthly revenue.

    How much additional work and expenses are needed for your site to produce this stated revenue?

    If there's very little that's required, then I think you seriously need to consider whether it'd be wise selling the site now for a one-time payment of cash, as opposed to just holding on to it this coming year and generating the income basically on autopilot.

    Paul
    Signature
    >>> Features Jason Fladlien, John S. Rhodes, Justin Brooke, Sean I. Mitchell, Reed Floren and Brad Gosse! <<<
    {{ DiscussionBoard.errors[3325352].message }}
    • Profile picture of the author Dmaind
      Originally Posted by paulie888 View Post

      If there's very little that's required, then I think you seriously need to consider whether it'd be wise selling the site now for a one-time payment of cash, as opposed to just holding on to it this coming year and generating the income basically on autopilot.

      Paul
      Paul is having a point here. Why to sell a site if you don't need emergency cash? I mean, if your site is in a long term niche then holding a site will be lot more profitable than selling it.

      Now a day, its very tough to find a quality site which will earn income with little effort. I will not advice you to sell if you don't have any cash emergencies and it's in long lasting niche.

      D Maind
      Signature
      372 Sold - WSO >>> Wicked Google Ranking Factors <<< Do You Know What Is Powerful Than HIGH PR .GOV LINKS?
      {{ DiscussionBoard.errors[3326646].message }}
  • Profile picture of the author Colin Palfrey
    If as some people above claim, sites earning $1k a month sell for as little as $2-$3k...I may just go on a shopping spree.

    I am guessing there is more to it than there first appears.

    For example, a site that makes $1k a month with no effort - MUST - be worth at least $6k, or more, unless it is built on quick-sand.

    On the other hand, If it involves doing a 9-5 grind, I would see it as a liability instead of an asset, purely because your hourly rate would work out so far below minimum wage.
    Signature

    I write articles and eBooks - PM me for details!
    {{ DiscussionBoard.errors[3325383].message }}
  • Profile picture of the author bhuff85
    Well, I'm no site flipping genius, but I have flipped around 10 sites. I think it definitely depends on the business model and how much work the site requires. If it's a complete autopilot or very minimal maintence site (couple hours per month), then you can expect a lot more. Let it age and earn that autopilot income, and you soldify that fact.

    The only thing here is that the site is only 4 months old. While it's great that it's generating as much income as it is, I think that the age could be a factor in getting the most out of it overall. IMO, I would just hold onto the site. Sounds like it doesn't involve a whole lot of work, so why not hold it and let the income continue to flow in hands free?

    Anyway, that's just my 2 cents. Good luck!
    Signature
    Want to speed up your writing and save time?
    This book will show you how:
    --> Write Fast: 21 Powerful Ways to Cut Your Writing Time in Half! <--
    {{ DiscussionBoard.errors[3325679].message }}
  • Profile picture of the author BudgetSEO
    Average of 6 months revenue, also depends on your niche (whether its something which will decay quick)
    Signature
    Let me Secure your wordpress website for the price of a small Pizza
    Weather Balloons Election Supplies
    If you need the ''cheapest'' quote, don't waste your time contacting me.
    {{ DiscussionBoard.errors[3325769].message }}
  • Profile picture of the author John Williamson
    I get an average of about 18-22 months worth of income for my niche sites that I flip.
    Signature
    The Google Adwords Keyword Tool is hiding your valuable keywords!
    OFFLINERS, Start using this simple technique and these 6 "weapons" today to get more clients and skyrocket your conversions! - FREE, no opt-in.
    Make some money by helping me market this idea.
    {{ DiscussionBoard.errors[3325869].message }}
  • Profile picture of the author indiatext
    as you said that your site is just 4 months old so its really not very easy to get much organic traffic to your site...i believe adword or other advertising services might be contributing in your earning potential....so i would suggest you to wait for about six more months and then sell your site...you can get a bigger amount then...
    {{ DiscussionBoard.errors[3325903].message }}
  • Profile picture of the author Colin Palfrey
    Hi Nikki,

    1. What type of website is it?
    2. How long does it take to maintain each week/month?
    3. How much does it cost to promote?

    There are some wildly different answers on here, and I think it is safe to assume the reason is because without an idea of your websites particulars, we are just mentally substituting in our own websites.

    This thread is certainly interesting, but without the questions above answered, other people's sale prices aren't telling us the full-story.

    Cheers,
    Colin Palfrey
    Signature

    I write articles and eBooks - PM me for details!
    {{ DiscussionBoard.errors[3325942].message }}
  • Profile picture of the author J Bold
    I have seen people claim a realistic figure is 3-6 months income, and others say that's crazy and a realistic figure is 1-3 years income, so I don't know.

    Considering it's only been around for 4 months, though, I'd say 6 months income would be a good starting point. Or even just an even $5K. If you wanted to sell it for sure, or very likely sell it, I'd look at those kinds of figures.
    {{ DiscussionBoard.errors[3326655].message }}
    • Profile picture of the author paulie888
      Originally Posted by redicelander View Post

      I have seen people claim a realistic figure is 3-6 months income, and others say that's crazy and a realistic figure is 1-3 years income, so I don't know.

      Considering it's only been around for 4 months, though, I'd say 6 months income would be a good starting point. Or even just an even $5K. If you wanted to sell it for sure, or very likely sell it, I'd look at those kinds of figures.
      I think the 1-3 years figure applies only to very established sites that have been around for at least several years. If the site in question has only been making money for several months, then I think the 5X - 10X monthly revenue figure is a realistic one to expect.
      Signature
      >>> Features Jason Fladlien, John S. Rhodes, Justin Brooke, Sean I. Mitchell, Reed Floren and Brad Gosse! <<<
      {{ DiscussionBoard.errors[3327026].message }}
  • Profile picture of the author rain21
    probably you can sell the site for about 4K if it earns more than 500$ a month.
    {{ DiscussionBoard.errors[3326814].message }}
  • Profile picture of the author traianturcu
    Can't you scale the model of the site and create several more?
    {{ DiscussionBoard.errors[3326825].message }}
  • Profile picture of the author NikkiDelgado
    Thanks for all your responses.
    The majority of people think I should keep the site and build replica sites.

    I was hoping to get higher valuations when it came to Flippa but I guess since my site is only 4 months old it won't bring in a higher value at auction.

    I will try to build a network of sites following the same blueprint as this one and hold on to them for longer.
    I am not desperate for the cash and can put my new venture on hold for a few months until I have the cash.

    Thanks again for all your responses.
    {{ DiscussionBoard.errors[3327437].message }}
    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by NikkiDelgado View Post

      I was hoping to get higher valuations when it came to Flippa but I guess since my site is only 4 months old it won't bring in a higher value at auction.
      As you've specified, that's a "guess".

      I'm genuinely very surprised how many people have attempted "valuations" knowing nothing about the product and income-source of the business. This is hugely relevant. The more promotion you've done, and the more traffic you've had, the more relevant that may be to potential purchasers.

      The specific issue involved here, of course, is that given your brief, 4-month history, a purchaser will naturally be concerned that if the subject-matter relates to a very small sub-niche, it's possible that it could already be partially saturated even after that amount of time. If a site's been earning steady monthly money for 4 years, there's a pretty strong supposition that that isn't the case, and that its market still exists. With a 4-month old site, that may or may not be the case, which is a very different proposition indeed.

      Which is why, in my opinion, it's essential to know at least something about the niche/product before attempting any valuation.

      I wish you good luck with it, whatever you decide to do, but if you'll excuse the observation I think it would be a complete mistake to rely in any way on the impressions of those willing to attempt a valuation without even knowing what they were trying to value.
      {{ DiscussionBoard.errors[3327517].message }}
      • Profile picture of the author Sparhawke
        Originally Posted by Alexa Smith View Post

        As you've specified, that's a "guess".

        I'm genuinely very surprised how many people have attempted "valuations" knowing nothing about the product and income-source of the business. This is hugely relevant. The more promotion you've done, and the more traffic you've had, the more relevant that may be to potential purchasers.

        The specific issue involved here, of course, is that given your brief, 4-month history, a purchaser will naturally be concerned that if the subject-matter relates to a very small sub-niche, it's possible that it could already be partially saturated even after that amount of time. If a site's been earning steady monthly money for 4 years, there's a pretty strong supposition that that isn't the case, and that its market still exists. With a 4-month old site, that may or may not be the case, which is a very different proposition indeed.

        Which is why, in my opinion, it's essential to know at least something about the niche/product before attempting any valuation.

        I wish you good luck with it, whatever you decide to do, but if you'll excuse the observation I think it would be a complete mistake to rely in any way on the impressions of those willing to attempt a valuation without even knowing what they were trying to value.
        I would also be asking what people come to the site looking for, it is one thing to have them looking for ebooks on money making and ten make a whimsy purchase on something else entirely or for a certain phrase to be in vogue at that particular time because of advertising somewhere in radio or tv land...

        If I was asked to pay 10x$1000 then I would want to make damn sure the traffic is not going to disappear overnight, I would want to know traffic entry points, bounce rates, advertising fees, reputation, ctr, the quality of the domain (which makes a HUGE difference) where people are headed and what they are looking at, the loyalty factor and pretty much everything else, backed up with solid evidence.

        To ask someone to hand over $10,000 is one thing, to have them do it is another especially on the say so of a brand new seller.

        I am confused as to why you would want to sell something that brings in a very solid $500-1k each month, is it in some way defective? Most people here would probably kill to have a site bringing in that much cash each month and lets face it, if you do have a goldmine you do not get rid of it easily lol
        Signature
        “Thinking is easy, Acting is difficult
        And to put one's thoughts into action is the most difficult thing in the world ~ Goethe”
        {{ DiscussionBoard.errors[3327789].message }}
        • Profile picture of the author Devid Farah
          Originally Posted by Alexa Smith View Post


          I'm genuinely very surprised how many people have attempted "valuations" knowing nothing about the product and income-source of the business. This is hugely relevant.
          I think that is typical.

          I sold many sites on Flippa and like Alexa and Michael have rightly underlined there are many,many,many factors to take into consideration.

          Nikki, there are some questions you should ask yourself first:

          Can my visitors easily navigate my content? (Your visitors should find your content very easily,this is crucial. Any site content should only be 2,3 clicks away from the home page.)

          Am i receiving lots of web traffic?

          And above all,is my traffic converting into sales?

          Now another very important (crucial) factor is:

          your Website Statistics:

          these statistics are very important and provide valuable information to evaluate your site.
          You can have this information with a traffic monitoring tool like Google Analytics for example, but there are many others you can choose,just research "Traffic monitoring tools" on Google.

          So track your visitors and check:

          - number of unique visitors( check them daily,weekly,monthly..)
          - the number of external sites linking in
          - Keyword search phrases used to find your site
          - number of referring sites

          etc,etc...

          Monitoring your web traffic you can quickly see what marketing methods work and what keywords generate the most visits.

          Also always improve your effectiveness of your site continuously improving conversion rates.
          You can do this in many ways: testing different headlines,colors,prices,
          order buttons..etc..

          All the best with your site,
          Devid
          {{ DiscussionBoard.errors[3328046].message }}
  • Profile picture of the author DireStraits
    There are far too many factors to take into consideration, which makes it difficult to answer.

    I have a friend who recently sold a website 400 pages in size. All content was hand-written (by my brother, actually ), and although it was informative and useful, it definitely didn't win any awards.

    Since he'd put little-to-no effort into backlinking the site, he was only making a couple of hundred GBP per month - yet he sold it for about £6,500 GBP, I believe.

    To the buyer, this price was justified not based on the site's current monthly earnings, but the potential they'd assessed it to have, and the cost of having all that content written ... which I believe was over half the final selling price.

    Even taking all of the above into consideration, I personally wouldn't have paid all that money for this site, because backlinking all those pages, recouping my investment and turning some decent profit would've taken me forever.

    The real buyer obviously didn't feel that way.

    Pricing-up a website for sale is very difficult. Maybe it's better to disclose as much information about it (PR, amount of content, outgoings, turnover/profit, niche/market, traffic-levels, etc) as possible, and let potential buyers make offers according to what they feel it's worth and are prepared to pay?
    {{ DiscussionBoard.errors[3327568].message }}
  • Profile picture of the author raybanmy
    The only way to find out is actually try to sell it and see what buyers willing to pay.
    {{ DiscussionBoard.errors[3327654].message }}

Trending Topics