How much should I sell offline lead gen site for?

15 replies
I am planning to sell my local lead gen site but have no idea what's the market price.

Can someone advise / guide me to find out how much my site would worth?

Thanks
#gen #lead #offline #sell #site
  • Profile picture of the author animal44
    How much are the leads worth to the customer? Get them to give you the figures, so they can see the value. Then ask how much they want to pay...
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    • Profile picture of the author savidge4
      why would you sell it? wouldn't renting it make more sense? how much traffic does it get? how many phone calls per day does it produce? What the size of the market its targeted towards ( community population )?

      Is it built or is it built and ranked in the top 3 all over the place? how many term is it hitting on?

      All these questions are variables that begin to determine the worth of your site.
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    • Profile picture of the author jamesfreddyc
      Originally Posted by animal44 View Post

      How much are the leads worth to the customer? Get them to give you the figures, so they can see the value. Then ask how much they want to pay...
      I agree... Jason Kanigan had a great concept that has stuck with me, "If the prospect says it then it's automatically true. If you say it, you have to prove it's true".... or something to that effect. Basically, it's best to let them or illicit from them the figures.
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      • Profile picture of the author Jason Kanigan
        Originally Posted by jamesfreddyc View Post

        I agree... Jason Kanigan had a great concept that has stuck with me, "If the prospect says it then it's automatically true. If you say it, you have to prove it's true".... or something to that effect. Basically, it's best to let them or illicit from them the figures.
        If they say it, it's true. If you say it, you have to defend it.

        Anyway, here's my interview with online business valuation expert Jock Purtle

        Click here to listen to the mp3 file

        2 and 3 X earnings multiples...so LTV X # quality leads/year X 2 years = $ Value

        or perhaps an estimate of "closed leads" rather than "quality leads".

        This is a question for valuation experts, and most accountants don't have the experience to properly value an online business.
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        • Profile picture of the author Ron Lafuddy
          Originally Posted by Jason Kanigan View Post

          If they say it, it's true. If you say it, you have to defend it.

          Anyway, here's my interview with online business valuation expert Jock Purtle

          Click here to listen to the mp3 file

          2 and 3 X earnings multiples...so LTV X # quality leads/year X 2 years = $ Value

          or perhaps an estimate of "closed leads" rather than "quality leads".

          This is a question for valuation experts, and most accountants don't have the experience to properly value an online business.
          Thanks, Jason. Fascinating discussion and a lot to think about.
          I'll be listening to this one more than once.
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  • Profile picture of the author jamesfreddyc
    Originally Posted by starbuy008 View Post

    I am planning to sell my local lead gen site but have no idea what's the market price.

    Can someone advise / guide me to find out how much my site would worth?

    Thanks
    I'd look for the answer to your question by knowing the answers to these questions:

    What is the LTV of a typical customer in the niche? (at min, what's the avg sale?)
    What is the monthly search volume for the keywords you rank for?
    How many keywords do you rank for?
    What position are you ranking for?
    How many calls each month do you generate?
    How many conversions each month?

    Also, how much investment do you have into the site (time, money, etc..)?

    To be honest I'd want to know most of this going into developing a site first, as well as already built a list of pre-determined prospective buyers -- that way as soon as the site started to generate calls I could quickly begin to drip them out to local service providers and follow up later.
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    • Profile picture of the author starbuy008
      Originally Posted by jamesfreddyc View Post

      I'd look for the answer to your question by knowing the answers to these questions:

      What is the LTV of a typical customer in the niche? (at min, what's the avg sale?)
      What is the monthly search volume for the keywords you rank for?
      How many keywords do you rank for?
      What position are you ranking for?
      How many calls each month do you generate?
      How many conversions each month?

      Also, how much investment do you have into the site (time, money, etc..)?

      To be honest I'd want to know most of this going into developing a site first, as well as already built a list of pre-determined prospective buyers -- that way as soon as the site started to generate calls I could quickly begin to drip them out to local service providers and follow up later.
      Thanks James for your feedback. My answer as following. Please advise. Thanks.

      What is the LTV of a typical customer in the niche? (at min, what's the avg sale?) - NA. The site got created 1 week ago
      What is the monthly search volume for the keywords you rank for? - 300/month
      How many keywords do you rank for? - 3
      What position are you ranking for? - Page 1 of Google
      How many calls each month do you generate? - NA. The site got created 1 week ago
      How many conversions each month? - NA. The site got created 1 week ago
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      • Profile picture of the author jamesfreddyc
        What is the LTV of a typical customer in the niche? (at min, what's the avg sale?) - NA. The site got created 1 week ago
        What? You don't seem to understand what LTV, Lifetime Value of a customer is. You SHOULD have done this before deciding on your keywords and just about everything else about building your site. If the LTV of a typical customer is $10 and you generate 1 lead each month, then how much do you think a business owner is going to value your site at?

        It's simple math. Do it.

        Originally Posted by starbuy008 View Post

        Thanks James for your feedback. My answer as following. Please advise. Thanks.

        What is the LTV of a typical customer in the niche? (at min, what's the avg sale?) - NA. The site got created 1 week ago
        What is the monthly search volume for the keywords you rank for? - 300/month
        How many keywords do you rank for? - 3
        What position are you ranking for? - Page 1 of Google
        How many calls each month do you generate? - NA. The site got created 1 week ago
        How many conversions each month? - NA. The site got created 1 week ago
        I'd value it at $0.00

        If you aren't generating any leads or sales for local businesses, then it's not really a "lead gen site". It's worth nothing to a business owner.

        Now, you can shop it around but it's going to be a very difficult sale. I mean, who cares if it ranks on page 1? Ranks for position 1, okay maybe you have some value. But if the phone ain't ringing and the LTV is $10 --- you did it wrong.
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  • Profile picture of the author Coqui Colunge
    You are not giving any information in order to be able to answer your question.

    James just wrote a very good list of Questions. You could start by answering those
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  • Profile picture of the author theheron
    With the info you have given your site is indeed worth roughly nothing. if you can say what industry it is aimed at and what the CPC is for the keywords it will potentially get traffic from then I will give you its potential earning potential.
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  • Profile picture of the author eccj
    The website is worth what the biggest sucker is willing to pay for it.
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    • Profile picture of the author jamesfreddyc
      Originally Posted by eccj View Post

      The website is worth what the biggest sucker is willing to pay for it.
      Now, now.... to be fair we haven't seen the site.

      I'm willing to give the benefit of doubt that the op simply went into this without fully vetting the niche and keywords.

      But I hear ya.....
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  • Profile picture of the author starbuy008
    Thanks everyone for the advise. Let me get the generate the leads first.
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  • Profile picture of the author tm124
    I gave two lead gen sites away for nothing and they have both gone on to make thousands for the new owners. Looking back I think I should have charged for them.
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    • Profile picture of the author starbuy008
      Originally Posted by tm124 View Post

      I gave two lead gen sites away for nothing and they have both gone on to make thousands for the new owners. Looking back I think I should have charged for them.

      Did those 2 sites ranked on Google 1st page?
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