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How much is it worth? (high p/m site)

by online only
8 replies
My friend has a micro niche site that does pretty damn well. He contacted me and asked whether it's smart move to sell that site. He is also wanting to know the approx. value of this site.

So here I ago:

June: $5600
July: $11,900
August: $12,700
September: $13,400 (estimated)

(It's not going to grow, unless he starts promoting other products and/or building list. So this $12k - $13k should be the max at the moment - as well as average)

This is pure profit (totally passive), but I think he spends 2-3 hours a month sending few e-mails to visitors.

When I checked his Google analytics, it seemed to me that the 75% of the traffic was coming from Google (it truly has legit backlinks. He has build relationships with other people in his niche over to course of 5-6 months, contacted many schools to get .edu links etc). The other 25% of the traffic is either direct or referral.

So questions:

1) How much is the value of this site? It's just an affiliate site, he hasn't collected any e-mails nor put on adsense or anything.

2) How much is the value of this site after 6-7 months? Higher I guess?

3) What is the average percent that brokers take from such sites? Around 20%?
#high #p or m #site #worth
  • Profile picture of the author online only
    Anyone ?
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  • Profile picture of the author RogueOne
    A general rule of thumb is one year of income = website value.
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    • Profile picture of the author TheFury
      Originally Posted by RogueOne View Post

      A general rule of thumb is one year of income = website value.
      I've heard this also, but why the f would anyone sell their website at a 1x multiple???
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  • Profile picture of the author online only
    I know that actually.

    "micro" niche sites that make $0 - $2000 per/month can be easily sold through flippa for 10x-12x monthly revenue.

    However, this site is making a LOT more yet has only 20 pages or so + the majority of traffic comes from Google. Although it has extremely natural backlink profile and probably sticks around Google for long time, it's a bit risky to buy such site to say the least.

    I really don't know if there is buyers for such sites, but maybe I'm wrong. If I were someone who has $$$ and buys high-end websites then I would most likely look for sites that are generating traffic from different sources - so it might be a turn off for buyers. But then again, I'm not the one who is expert in such field.

    Furthermore, I talked with him and we came to a conclusion that he won't sell this on flippa. He don't want to get scammed + is afraid of competition. So probably private broker is the best for such kind of situations.
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  • Profile picture of the author Isaiah Coe
    I estimated the current value to be $32,700, if your trying to sell it right now. This includes your estimated value for September. But it's probably worth more by seeing that the monthly income is going up. Or it could be worth less deepening on your expenses, spending lots of money on ads.
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    • Profile picture of the author online only
      Originally Posted by Isaiah Coe View Post

      I estimated the current value to be $32,700, if your trying to sell it right now. This includes your estimated value for September. But it's probably worth more by seeing that the monthly income is going up. Or it could be worth less deepening on your expenses, spending lots of money on ads.
      Can I ask you how did you come up with that number: $32,700?

      Monthly income is not going up, it will probably stay at the same number (12k - 13k) and it's passive - no expenses whatsoever.
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      • Profile picture of the author Isaiah Coe
        Originally Posted by online only View Post

        Can I ask you how did you come up with that number: $32,700?

        Monthly income is not going up, it will probably stay at the same number (12k - 13k) and it's passive - no expenses whatsoever.
        Sure all I did was add up the stats you posted and then divided it by four ($43,600/4 = $10,900, which is your average per 4 months). Then multiplied by three to get your yearly average. Which gives you a predicted yearly average of $32,700.

        If you try to sell it soon, I would have it at $50,000 by it now. And the minimum to bid at $15,000.
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        • Profile picture of the author AdamJ85
          Originally Posted by Isaiah Coe View Post

          Sure all I did was add up the stats you posted and then divided it by four ($43,600/4 = $10,900, which is your average per 4 months). Then multiplied by three to get your yearly average. Which gives you a predicted yearly average of $32,700.

          If you try to sell it soon, I would have it at $50,000 by it now. And the minimum to bid at $15,000.
          $10,900 would be his average per month, not every four months.

          So that would give a yearly value of $130,800 ($10,900 x 12).

          It's certainly worth more than $32k. It would make that in 2.5 months!

          Also, if the site has grown to $13k and is expected to stay there (ie. it's not thought to be a temporary spike, not seasonal, etc) then it would be fairer to take $13k as the monthly earnings, rather than including its growth phase in the average.

          $13k x 12 = $156k...
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