My Site Makes Over $2000 Monthly, Whats It Worth

Well the going rate for a site is 8 to 10 months of its income. So a site getting $2000 a month in revenue should retail for what, $16k to $20k. Obviously there are variables. For example someone might see a ton of value in your domain name, product or service, and push the price higher when trying to get the site from someone else (if in Flippa auction).

Whatever you do, if you do try to sell it for that amount please use an Escrow service.

generally, you'd be able to sell it for between $15k-$25k

it depends on your niche though, and how well you have set up the site to monetize. You can get more if it's in a good market (health/finance/etc..) and if you are building an email list.

Rule of thumb: If you can provide detailed net earnings and traffic stats for the past 12 months, then it`s probably well worth 12 times the money it generates monthly.

generally, you'd be able to sell it for between $15k-$25k

it depends on your niche though, and how well you have set up the site to monetize. You can get more if it's in a good market (health/finance/etc..) and if you are building an email list.

oops - double post - delete this post please...
sorry for the incident

Another question would be, if you make this $2000 without big efforts every month, does it make sense to sell it for just ten months of revenue... So, it hugely depends on your particular situation. Some sites probably worth 100 times more than their monthly revenue and some even more.

I have always heard the 10x monthly income rule.... meaning $20K range like others here are stating. Now, if the site has been doing this consistently for a very long time (over a year) then you may be able to get even more out of it since it has a nice history.

For example, if any business was making 10K a month for the past 6 months and another had been making 10k for the last 2 years, the older business is likely to get more leads/bites for higher money since it has a longer history.

Another consideration is how much work does it take to make $2,000 mnth and is the over $2,000 profit or do you have expenses?

Well, if you can provide the prospective buyer with your google analytics details (most would be buyers trust analytics stats) and the money earning prove, you are sure to sell it for at least times 10 of its currently monthly revenue. In that case, you could bank 20k or more from it.

I'm curious where site valuation of 10 to 12 months revenue comes from. I've read this before and frankly it doesn't make sense. I understand something is worth what someone will pay, but I wouldn't part with a $2K/mo passive income site for $25K unless in dire financial need.

Offline businesses are generally valued much higher than net income times 10 to 12 months. Why the difference with websites? Sure, a site's income can plummet and there's fewer barriers to entry, but it's not easy getting a site to consistently earn $2K / month, especially with little ongoing attention.

I'd prefer building it up into a monster earner or dedicate just enough resources to it to maintain $2K a month. In 15 months I'd be happy I didn't sell because I'd have earned more than the $25K.

You could reinvest $1,000 per month of that $2K and build it up to $3K, $4K or more per month. You'd hardly have to be involved.

That's just me. Maybe $25K in cash is simply too attractive to pass it up for you.

Anyway, present website valuation doesn't make sense to me, especially for solid and consistent passive earners.

Easy, go to Flippa.com and find sites in your category.

If you were owning a site making 2,000 a month passive income consistenty why would even want to sell it. It's a golmine, you could easily scale it and live off of the income for the rest of your life. But it's your life, i'm just saying.

Formula:
price = earning/mo x 5-10. Depends on stability of your website.

Why would you consider selling one on your cashflow streams for some instant gratification? $2,000 a month is no joke. Selling it for 20,000 seems like an awful idea. Does this site require a lot of maintenance?

its worth about a year worth of income.

If you want to get $20k for that site, no matter how old it is, don't sell it through flippa. Find a reputable website broker or business broker that will help you sell it. On Flippa you'd be lucky to get $10k - $12k for a site making $2k monthly.

Also, consider keeping that and banking an additional $24k in 2012!

Where is the money coming from? Is it adsense, affiliate marketing, products? Is it drop-ship or inventory? Buyers will pay a good amount of money, but it needs to have 1 of 2 things:
Growth & future earning potential
or Ease of Use

So, they're willing to work harder for a site that has the potential to make more $ than they will be for a site that is pretty much peaked out.

It would be worth 10x as much so in your case its $20,000

I generally use this formula:

Monthly Income x 12 x 2

So, it would be $2000 x 12 months (year) x 2 (2 years of running).

The site, in this case, would be $48,000.

Of course, that's a little high but think about it. It's your asset, if you held on to it for 2 years than you're going to make that if it's a quality website. Plus, you said that it's still gaining traction in a lot of searches so that $2000 can still go up.

I say base it on 2 years because you want to have enough income from the sale to get a new site up and running which may take an entire year, ya know?

You can try to sell it any price you want. But buyers are normally willing to buy at 10 - 20 times the monthly income.

I've seen people say sites can go for 1-3 years of income, but you typically need at least a year of solid earning history for that.

More accurately, I think those that say from 3-10 months are more or less right.

In the end, though, it's worth what someone will pay for it.

For example, say you wanted some fast money all at once, you could easily sell it for $10K, if you were desperate for some money right away.

Otherwise, you could definitely probably get somebody to bite at upwards of $20K or even more, depending on how and where you went looking for sellers. It would probably take a bit longer to get that amount, though, so it all depends on how patient you are and finding that perfect buyer that has the money and is willing to pay it.

Well thanks everyone for all the replies,

I have no interest in selling this website as its making me good money each month, I just wondered what it may be worth if I had to sell it.

It actually makes between $2000 to $2500 each month, with only $200 a month being paid to my SEO people who help keep it at the NO 1 position in google.

I'm too lazy to do it myself so I employ others to do it for me, and no I don't build an email list, in this niche it doe's not work, Ive tried it.

Thanks for all the advice and information.

Cheers