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Am I Worth $200,000?

by AHayes183
21 replies
Merry Christmas Warriors,

I have been building an online business for a few years now and would love to eventually sell it and move back into the offline world. My question and this is perhaps for the more experienced internet marketers out there:

How much does a website need to make a month or year to be worth $200,000?

I realize this greatly depends on the buyer and their own personal resources/abilities, but I would be keen to hear opinions.

Thanks,
Antony.
#$200 #worth
  • Profile picture of the author visimedia
    It's a not easy question to answer, because tons of factors that affect on how we value a website. Like how strong is the brand, the revenue it gets, the future potential, the current growth, the buyer's point of view and how valuable the buyer is seeing this website, and tons of other factors....

    What do you say warriors?
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    • Profile picture of the author ErikNilsson
      Originally Posted by visimedia View Post

      It's a not easy question to answer, because tons of factors that affect on how we value a website. Like how strong is the brand, the revenue it gets, the future potential, the current growth, the buyer's point of view and how valuable the buyer is seeing this website, and tons of other factors....

      What do you say warriors?
      You are right many factors involve in tagging a price....
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  • Profile picture of the author Gerard Mohamed
    I would start off by checking the page 1 rankings of all the main competitor websites and the keywords similar to mine, that they are competing and/or ranking for. A Firefox add-on like SEOQuake can greatly assist with part of the information. Plug a few of these websites into a "whois" database, but one that also gives an estimate of the worth. You should then have a pretty good idea as to how your own site compares, but more importantly also what still needs to be done to increase its worth.
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  • Profile picture of the author Eddie Titan
    Originally Posted by AHayes183 View Post

    Merry Christmas Warriors,

    I have been building an online business for a few years now and would love to eventually sell it and move back into the offline world. My question and this is perhaps for the more experienced internet marketers out there:

    How much does a website need to make a month or year to be worth $200,000?

    I realize this greatly depends on the buyer and their own personal resources/abilities, but I would be keen to hear opinions.

    Thanks,
    Antony.
    When you get into those numbers (e.g. $200,000) a website needs to prove that it has been profitable in the past, it has enough traffic to justify its income, it has a secure income stream, it has potential for the future, and it needs to be well established in a certain niche online.

    Regarding how much money it should be making every month. This depends on the type of website.

    It can be anywhere from $0 - $30,000

    Take a look at this website and you will get what I mean:

    Flippa Sale: Debate.org for $130,000
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  • Profile picture of the author Daniel Wilson
    For 200k you'll need to present not only the earnings but also the potential the site still has.

    But I'm sure this would need to be some kind of an expensive service with a good reputation and many possibilities for profit.
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  • Profile picture of the author AHayes183
    Hi,

    Thanks for all of your replies, they have helped me keep things in perspective. At the moment I am making around $750 - $1500 a week with the website and have only launched it around 3 months ago. Of course I had a client base before hand which has helped some. However, I do need to continue building it's rankings in Google and steal all of my competitors' keywords before I try to sell it on.

    Thanks again for the insight - I still have some ways to go!

    Antony.
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  • Profile picture of the author AHayes183
    Eddie: Debate.org seems like a cool website - one of those "I should have though of that" sites.
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  • Profile picture of the author Anonymous Affiliate
    Here's a rough estimate (there are many factors to consider):

    In order to sell a site for net $200k, you will need to present proof that it's been generating between $15k and $25k moreless constantly for the last 12 months, and that it can sustain it (perhaps expand it?) towards the future.

    These numbers are what I calculate from sites I've sold in the past in that price range.
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    • Profile picture of the author AHayes183
      Originally Posted by Anonymous Affiliate View Post

      Here's a rough estimate (there are many factors to consider):

      In order to sell a site for net $200k, you will need to present proof that it's been generating between $15k and $25k moreless constantly for the last 12 months, and that it can sustain it (perhaps expand it?) towards the future.

      These numbers are what I calculate from sites I've sold in the past in that price range.
      Thanks for your post. Is that 15-25k a month or annually?

      In your experience would it make much of a difference on the nature of the website? Surely a service related website would need to generate more since the new owners would need to manage staff and take over a client base.

      It's great to have this feedback though as it shows I need to start documenting early so that in a year or two I am in a position to provide full proof as well as a record of progress to interested parties.

      Thanks,
      Antony.
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  • Profile picture of the author Thomas Michal
    check out the different business valuation models choose one and run with it and also if the business is only 3 months old you may have trouble... just my $0.02

    business valuation methods, - Google Search
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  • Profile picture of the author Carlsbadd
    Any business venture is a risk, you have several things going for you right now if I understand your post correctly:

    You have a business model that is a proven money maker

    The value of any asset is somewhat in the eye of the beholder, some may see this as a solid business investment or have idea's on how to improve it and make it better.

    If the niche is one considered "evergreen" and the recent income is steady and expected to maintain then 200K is not a huge investment to some players.

    10 or 12 times the monthly income of any business online or off is not out of the ordinary.
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  • Profile picture of the author AHayes183
    Thanks for your replies. My business has been going for 3 years now but the website is only 3 months old. I still have a lot more features to add, but just wanted to know what to aim for so thanks again.
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  • Profile picture of the author Royce Space
    Times ten your income per month.
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    • Profile picture of the author schttrj
      First of all, you have to decide the future business potential, not even previous past financial stats. Now, if your website is a BRAND, i'd pay more for that. but if you are the brand and your website is nothing, then why will i buy the website? i will buy YOU. the moral of the story - you cannot judge a new business from its financial statements, but from its quality of products, market competence and customer retention, which are all related to you at the moment, i guess. am i wrong?
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  • Profile picture of the author enKonversations
    According to me E-commerce website valuation is depend on goodwill of name and their services, client and market area.

    Achieving worth of $200,000 is really tough task but it possible in small time like one year through effective marketing techniques and your best products and services.
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  • Profile picture of the author Shawn Darlin
    I have very limited flipping experience but I'd say a website making $20k+/month should do the trick. And obviously, like everyone else said, it has to have a future potential.

    Good luck!
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  • Profile picture of the author Steven Richards
    If you can get your site to $20k per month, I'd say you're getting pretty close!

    Depends on how much future growth you can forecast, and if you can back up your claims with hard evidence!
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    • Profile picture of the author mrdomains
      One of the most important aspects in this kind of transaction is if you are selling a business centered around self-sustainable stand-alone transferable products and services, or if the business success has been built around you as a person with your knowledge and hands-on production.

      If the latter, then the price estimates must either be lowered considerably , or you may try to make a deal with the buyer to stay on as head of operations for a duration (months, or years).

      If the biz is built around a product or service which is standalone (and mature) then yes, the 10x monthly revenue is a target you might go for.
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  • Profile picture of the author iThinkhard
    simply ask: If someone else had my website, Knowing what I know now, will I invest $200K in it? Will you?
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  • Profile picture of the author AHayes183
    Hi,

    I guess the real question is when my website is making 20k a month, will I want to sell it? You all make some very valid points and I hope these are helping others who are curious about their websites' market worth.

    I am very in "touch" with my clients and staff members so this sort of service is something that would need to continue if I were to sell the business. I had actually thought of offering 6 months free advice or something like that to keep the ball rolling smoothly.

    Thanks again.
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  • Profile picture of the author InternetSuccess001
    If you are selling online (i.e., flippa.com, sitepoint.com/etc), then generally speaking (the people with deeper pockets), are willing to pay 10-12x the currently monthly income, with ideally that income having been sustained for the last 12 months.

    So in your case, if you can show that it has done $15k/month for the last 12 months, then it should be easy to find online buyers. Just make sure you do the proper escrowing, etc so someone doesn't 'run away' with your business for free.

    John
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