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Valuating an online marketing business

by brentb
7 replies
I won't get too specific here but say I have a steady online ad business that makes about $1500 per month revenue, $1300/mo profit. Its basically fully automated and is completely turn key, revenue generated on day 1.

If I want to sell it, how much do you think its worth?
#business #marketing #online #valuating
  • Profile picture of the author danieldesai
    Originally Posted by brentb View Post

    If I want to sell it, how much do you think its worth?
    That depends on several factors.

    It's difficult for anyone to tell you how much your site can fetch exactly.

    With that being said, I know that there are many people who flip websites for about a year's worth of revenue (or maybe it's profit, I can't remember).

    If you could sell your website for a year's worth of profit, assuming its earnings remain steady, you could make over $15,000 from selling it.

    Again, this is HIGHLY subject to certain variables such as the industry/market the website is in and also your ability to find people who are willing to invest in something that will take a year to recoup.

    Daniel
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    • Profile picture of the author Steve B
      Brent,

      Your site is worth exactly what a ready, willing, and able buyer will pay for it.

      The most important metrics are:
      1. Current revenue ($/month)
      2. Unique monthly traffic (humans only)
      3. Consistent and steady track record for both 1 and 2
      4. What are your site assets? Do you proprietary software, your own courses or books, etc.
      5. Is you site unique and difficult to replicate (the harder it is to copy, the better for you)
      6. Are you in an evergreen niche ... or is your niche declining?
      If you decide to hire a broker to help you sell - be extra careful you get an honest one.


      Steve
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  • Profile picture of the author Engineer2Blogger
    Nice one Brent. I'd say 12 x monthly profit but depends on a lot of factors. Steve covered it very well.
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    • Profile picture of the author brentb
      Its for custom coded email software (read, no costs except server), autoresponders on repeat and an email list of about 150,000.
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  • Profile picture of the author jmferret
    Industry average is about a year worth of profit. In other words, something like $15K.
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  • Profile picture of the author Regional Warrior
    Brent

    If I am right this could be sold on either here the WF and see if you get some decent money for it or you could try Flippa!

    I sold my business in 2014 which was online to a local who lived in my area for a tidy sum with 6 months support so think about the support angle when you go to sell it may sway the buyer

    Jason
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  • Profile picture of the author Verdatti
    It greatly depends on your industry and your history. A website that has been making $1500 a month for 6 months or 1 year is not as valuable as a similar website that has been making $1500 a month for 5 years.

    Your traffic also matters for the valuation process, and your trends in the earnings and traffic are important. If your website is growing buyers will pay a premium for it. If your business is losing traffic or making less money month after month, it will be difficult to find a buyer.

    Most common valuation methods would value your website at 10 - 20 months of earnings. So your website should worth $15k to $30K.
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  • Profile picture of the author ramonavandusen
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