How much is a site like this worth?

I am not sure how much a lead is worth to a laser hair removal business but that is the first thing you need to find out. The best way to do this is to ask them straight out.

Once you know that then you know what you can ask and how to better present the offer. If a single lead is worth $500 to them then that is $2000 a week and the site will be paid for in a little over a month.

I would assume the price includes fixing the site and tailoring it to their business. Charging $10K for a site that they will now have to go out pay some more to get it fixed would be a tough sale.

Definitely worth $10,000 if you can prove to them you are getting 4 leads a week. But here is something else you may want to try. Just get them to pay for the leads.

If each customers lifetime value is a profit* of $1500, and every 4 leads gets them 1-2 customers. You could easily charge $100 a lead. (of course you would fix up the site to show their logo etc)

Then you would make the 10k in 25 weeks. And if they ever left you, you could go straight to the other laser hair removal place in town. There is destined to be at least 3 in the wider area who could use the leads.

That will be an easier sell, and you can make more than the 10k.

Just a thought.

There are a number of factors that general go into the valuation of a web property. Of course there are always exceptions to the rule and every buyer is not necessarily looking for the exact same things, but for starters I would want to know:

Exactly how much does the site earn a month?
How long has it been earning this much?
Is the website entirely dependent and organic search position?
Do you have analytic's and earnings reports available for review?
Why are you selling?
What exactly are the expenses?
How many hours a week will it take me to run it?

Currently the "general" market value for a lead generation website is about 3 x it's yearly earning. So if the site made $24,000 (profit) in the last 12 months it's reasonable that you could sell it for close to 65k, as long as your reports back up your claims and the site doesn't have any significant drops in traffic during the said time and is stable.

If your site is brand new it is unlikely that you are going to get the 3x yearly rate because of the lack of history. Serious investors tend to look at a website's history and earnings over time. The longer the history, the more stable an invest it is and less risky to the buyer.

Now if you have something that is relatively new (less than 6 months) and is already making 2k a month, you can probably dump it for 10k rather quickly. There are lots of buyers out there that are willing to take more of a risk IF they understand the risk and think it's worth it. I've done it myself and many times the investment is worth the risk involved.

So basically what you are looking at is this:

1. If it is older than 12 months, and the income pattern is stable or inclining, multiply the net earnings for the year x 3 and in the majority of cases you have a pretty good sale price and you CAN find someone that will buy it for that amount. It's best to use a broker if you have never done this before. There is a large market of investors looking for investments and the income pattern and the ability to re-sell the site in the future are two big factors in determining an average market rate for a sales.

2. If it is less that 12 months and needs some work, set your price "around" your projected earning for 12 months and use that as your price. You may or may not use a broker depending on the amount, but places like Flippa are pretty good for this type of sale. Because of the lack of history with a site less than 12 months, "investors" will typically knock down the sale price to a few months earnings for a lack of history. But if the site is of real value and someone can really see that, a person selling such a website can often get much more than they realize the site is actually worth. This is especially true if they have never sold property like this before.

Forget how marketers value a website... it is irrelevant.

The website is worth how much someone will pay for it. If I was a consultant for somebody and they asked if the website was worth that, I'd say no. 4 leads a week you say, I'd say show me proof, and show me that you know the conversion rate of the leads. Someone in the business will likely say they will get 1 sale a month out of those leads... 10k won't pay it off until year 2. For offline businesses, a business is worth it going into year 2 but not for websites.

The way people evaluate, is wrong... if a website makes 10K it doesn't mean it's worth 120k... it's worth exactly what someone will buy it for. I wouldn't sell it, I'd rent it out.

Thanks for all the comments guys. I would love to be able to hold on to it and milk it for all its worth, but I need a lump sum of cash NOW! I've got a few other local sites creeping up in the search engines, but for this one, I gotta sell it.

I'm going out tomorrow to a few local laser hair removal spas. We'll see what happens.

Good luck!

Just make sure you take a tablet or laptop with you to show them exactly what it is, and show them how many leads you are currently getting.

Should be able to get at least $5k at the very lowest.