Over $1000/Month profit -- How much should I sell it for?

by michaela1999a

Posted: 8 years ago 16 replies

FREEMARKET.COM

Hi Everyone,
Thank you for reading! I'm new to this forum, and thought I might gain some advice from you experienced users

I am currently owning and running a social media selling service, it earns over $1000/month and requires little time each day. All the nitty gritty is done through the outsourcer, and all we have to do is update the customer when we're done.

I want to work out a good selling price for a customer, and I was wondering what you guys would recommend, considering the earnings and the little time needed per day.

Oh, if anyone has any advice for me or is interested, I'd love to hear from you. Please feel free to email me at michaela1999a [at] gmail dot com

I appreciate everyone's comments and time in regards to this, and look forward to seeing your recommendations.

Thanks

#$1 or month #notmuchwork #profit #revenue #sell #sell a website #site

kimanierick 8 years ago

If the site is running well and it gives you good returns with few problems.. I dont think this is a very good idea unless you have a very good reason for selling it. Just stick around with it/ Thanks
- Thanks
- 1 reply
Signature
Top Paying Network
{{ DiscussionBoard.errors[10394579].message }}
- michaela1999a 8 years ago
  
  Thanks, the only issue is that I would rather the cash upfront to pay off a lot of expenses, or else I'd have kept it
  
  Thanks
  
  {{ DiscussionBoard.errors[10394647].message }}
Synnuh 8 years ago

Get a third party appraisal, shoot me a PM with some details and your asking price.

I'd be interested in buying it if it checks out.
- [ 1 ] Thanks
{{ DiscussionBoard.errors[10394671].message }}
unclejoe 8 years ago

Well if I remember correctly from my college business course the rule of thumb when selling a business is 2 years gross verified sales numbers. In your case the negotiations start at $24,000
- Thanks
Signature
Worlds best resell rights membership site
{{ DiscussionBoard.errors[10395310].message }}
Synnuh 8 years ago

The web is different, unclejoe.

8x-20x multiples are standard.

24x profit needs to be a self sustaining powerhouse of a "business" not a site.
- [ 3 ] Thanks
{{ DiscussionBoard.errors[10395498].message }}
Synnuh 8 years ago

That 8x is based off profit.

If he's spending $500 to make that $1,000 the negotiations start at ~$4,000 and go up from there.

Every site I've bought has been a multiple of the profits for service / product based, and multiple of earnings for passive income (ie affiliate or adsense).

$1,000 a month is a far cry from a self sustaining powerhouse business.

It would have to wow me to get anywhere near $24,000 and I'd have to be pretty much guaranteed to get my money back within 2 years, or sooner if I grew it. The web moves too quick to plan out more than 2 years.
- Thanks
- 1 reply
{{ DiscussionBoard.errors[10396007].message }}
- unclejoe 8 years ago
  
  Well the web is weird...
  
  look at Flippa
  
  Some sites say they are making $70 a month going for $3500
  
  and some making $5000 month at $2500
  
  Thanks
  
  2 replies
  
  Signature
  Worlds best resell rights membership site
  
  {{ DiscussionBoard.errors[10396311].message }}
  
  irawr Banned 8 years ago
  
  Originally Posted by unclejoe
  
  Well the web is weird...
  
  look at Flippa
  
  Some sites say they are making $70 a month going for $3500
  
  and some making $5000 month at $2500
  
  There's a bunch of scams on flippa. As far as the value goes, there's no model here that really works for websites. There's just too many factors that matter.
  
  Thanks
  
  1 reply
  
  {{ DiscussionBoard.errors[10400111].message }}
  
  Jack Gordon 8 years ago
  
  Originally Posted by irawr
  
  There's a bunch of scams on flippa.
  
  Especially when it comes to social media/traffic reselling sites.
  
  I am not saying the OP is a scammer, but I would be triply cautious proceeding in that direction.
  
  OP, understand that if you were to sell this to someone who isn't gullible, you will likely have to be prepared to withstand an extraordinary amount of due diligence.
  
  Thanks
  
  Signature
  Fifteen Lessons I have learned over 15 years and six businesses (or, My 1000th-Post Manifesto)
  
  {{ DiscussionBoard.errors[10400415].message }}
  
  l23bc 8 years ago
  
  Originally Posted by unclejoe
  
  Well the web is weird...
  
  look at Flippa
  
  Some sites say they are making $70 a month going for $3500
  
  and some making $5000 month at $2500
  
  From experiences of when i used to sell on flippa for a short duration alot of sites state exactly what you stated, But the real research on its domain serach or traffic value shows sometimes a different picture, I remember alot of sites back in 2013 stating 5000 a month after valuing with site history (Non seo and age of domain) was in reality basic websites designed and uploaded with backlinking to show stats of traffic. I am not saying flippa is a dodgey site you can find genuine well-build businesses for different reasons such as previous owners retiring or just moving onto other projects of interests. We as marketers do it all the time...start a business then lose interest and pursue a new niche or interest after a long marketing and business is built up. My whole point is research before you venture on claims carefully,
  
  To the Original poster, What exactly for all your hard work and time if your producing that much capitial would you be happy to sell at? For all the hard work over the years in producing a great business.
  
  Thanks
  
  Signature
  
  No Link here or Nothing to Promote Just a Old Happy Warrior User reading Topics
  
  {{ DiscussionBoard.errors[10407861].message }}
dbman 8 years ago

Several factors to consider for the valuation:
1. How hard would be for the new owners to upkeep same level of income?
2. Is there growth potential?
3. Is there risk that the traffic / sales will dry up?
4. You can get bonus if the buyer can get extra value by connecting to their own resources
5. Assets included
- Thanks
{{ DiscussionBoard.errors[10396383].message }}
DavidZin 8 years ago

That's good profit .I can make to website to earn money .with value product to sell.
- Thanks
{{ DiscussionBoard.errors[10400407].message }}
Synnuh 8 years ago

I backed out on it because of the shady nature of the process. He's desperate to sell. Too much for my liking.

Not calling it a scam, but I like to make money and had to stay away from this one.
- Thanks
{{ DiscussionBoard.errors[10404582].message }}
MBedford 8 years ago

Yeah you have to be careful with flippa.

I remember a year ago I saw a couple of people who made 30 to 40 similar sites, and "sold" the first 90% of them to themselves for a price far too high for the quality of the sites.

Some poor folk bought the remaining sites at a slightly lower price than the others, I assume thinking that they could flip them for more.

I would start with 8 to 10 months profit if I were you.
- Thanks
Signature

NO OPTIN REQUIRED - Exclusive Freebies, PLR Bundles, Autopilot Profit Calculators, Business Opportunities, my VIP list and Code Redemption.

Private message me on skype or this forum NOW for deals you won't find anywhere else.

Skype name: IMViperMarketing
{{ DiscussionBoard.errors[10407338].message }}
Thomas Smale 8 years ago

Typically, online businesses are valued between 2-3x annual net profit. There are several factors that will move the valuation needle between 2 and 3 but the most important factor is the time required for the new owner to run the business.

If you are interested in a free valuation, feel free to get in touch.
- Thanks
Signature

I specialize in selling websites over $10,000 in value. No obligation, confidential valuation here.
{{ DiscussionBoard.errors[10415287].message }}

GorselDersler

8 years ago

Originally Posted by michaela1999a

Hi Everyone,
Thank you for reading! I'm new to this forum, and thought I might gain some advice from you experienced users

I don't believe that it is easy to make 1000$ (per month). There are lots of article about how to easily making money but all of them is waste I think.

Thanks

{{ DiscussionBoard.errors[10420603].message }}

Over $1000/Month profit -- How much should I sell it for?

Trending Topics

The Twilight Zone

Any thoughts on golf's latest phenom...Scottie Scheffler??

Should i Index Author pages?

best high quality crypto traffic.

What's the Best IM-Related Skill to Learn Today That Can Help in the Future?