How much should I sell my automated business for?

by dreck
10 replies
Hey warriors,

I have a website that generates revenue on both adsense and purchases. Adsense gets $20+ a day, and I get about 2 - 4 purchases that gets about $25+ in total.

It is a 3 month old site, but just started ranking higher in the search engines on high traffic keywords. I get about 1000+ unique visitors everyday organically. I have 12 keywords in the top 10, and 117 keywords in the top 30.

In addition, I get 150+ people added to my email list everyday.

I am a programmer, not a marketer. Although the SEO I did on the site is starting to show just this month. It is hard to let go but I too...

Someone wants $5000 for it. I am not an expert but I think it is worth more than that.

For the details I mentioned above, how much should I sell the site for?

It is an automated cloud video maker.
#automated #business #sell
  • Profile picture of the author nisha goel112
    its totally depend on the your keyword value and content value of business or product
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  • Profile picture of the author nicheblogger75
    This is only my opinion, but if you're site is averaging $50 per day let's say, that's $1500 per month. I would multiply $1500 X 12 months and that's what I would ask.

    So I'd start the bidding at $18,000.

    I think that's a good investment, especially if you're SEO is on the rise and you are adding 150+ new subscribers to your list every day.

    You also have to consider the niche, however. Are there a lot of affiliate products you can monetize the site with? What other forms of advertising could make the site money? How easy/difficult is it to come up with new ideas for great content?

    From the information you gave, it seems to be a software/video creation tool. In that case there may be potential for more value depending on how you charge. Do you charge a monthly fee for membership or do you charge per project? Is there content too? Do you have a blog associated with the site that gives video marketing tips? If not, that could be an idea. You may also be able to review video marketing related products that would enhance your own service, such as stock video/photo packages, YouTube instruction courses, etc.

    It seems to me that the results you are seeing are well above average for a site that's only 3 months old, so that's certainly something to factor into your asking price. If it looks like the revenue is only going to increase, you may be able to ask for more.

    As an entrepreneur, I feel that buying a website that will make me back my initial investment in a year or maybe less is surely a great investment. If the person who buys your site wants to put in the work, they may easily be able to recover their investment a lot sooner than expected.

    The only problem you may have regarding your asking price is that your revenue history is only a few months old. If it were me, I'd want to see at least a year of steady revenue with consistent increases every month. That's just me. Other investors may not have those standards or may be willing to take a chance that revenue will only increase.

    Honestly, if you are not in a pinch and don't need the money immediately, I'd hold on to the site for at least a year and continue to grow it. If you can show a year's worth of revenue, it's going to make the site look a lot more desirable to a lot more investors.

    Also, at the end of a year you'll have a considerable email list. If you market to your list correctly, this can only add to your revenue and make the overall website even more valuable. You would essentially have a complete business at this point instead of just a website.

    Just my two cents...
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  • Profile picture of the author Frank Donovan
    Originally Posted by dreck View Post

    For the details I mentioned above, how much should I sell the site for?
    The issue with selling it now, is that with only 3 months' trading history, it's still pretty much a leap into the dark for any buyer. That's probably why you're discussing a price of only $5,000.

    Assuming the purchases are automated - that is if a new owner can simply take them on without undue additional expertise or expense - you have a potentially valuable site. If you could hold out for a minimum of 12 months and those figures stay constant - or increase - you'll have a site worth at least $20k-$30k, as well as a 40K+ email list.

    EDIT: Nicheblogger75 posted as I was typing this, saying much the same thing.
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  • Profile picture of the author Coropo
    I have sold a couple of websites. The largest one I have sold so far was worth $210,000 (through FEInternational). You can see the my public Flippa profile here as well:

    Based on what you are saying, the site currently averages about $45 per day and 150 leads per day? That means $1,350 and 4,500 leads per month.

    From my own experience, the minimum you want is at least 10x of what you are making per month, especially if your site is on a growth trend.

    The one drawback of your listing is that it's only 3 months old.

    My advice? Don't sell it for $5,000. It sounds like it's worth more than that. If you tweak your system a little, I am sure you can make each lead worth at least $1 in their first month, which should bump your income up to $4,500 monthly.
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  • Profile picture of the author dreck
    Thanks for all the help, I think I will keep it for at least another 6 - 12 months while I am in South Korea. Just didnt know how I was going to maintain it during my work project there.

    But I think I can spend about 30 minutes a day on the support emails and maybe add new content once a week.
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    • Profile picture of the author Meharis
      Originally Posted by dreck View Post

      Thanks for all the help, I think I will keep it for at least another 6 - 12 months while I am in South Korea. Just didnt know how I was going to maintain it during my work project there.

      But I think I can spend about 30 minutes a day on the support emails and maybe add new content once a week.

      Excellent decision. Keep it at least to be one year old and you should be able to collect higher benefits.
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  • Profile picture of the author Rory Singh
    I think you got some great advice above. If it's bringing in revenue on autopilot...let it's SEO authority grow.

    I would keep it longer than 12 months.

    Why wouldn't you keep it indefinitely?

    Learn email marketing and you could make a lot more in the long run than just settling for a measly one time payment of $5000 to even $20000
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  • Profile picture of the author writeaway
    Hang on to it, TS.

    There's been lots of complaints on flipping sites lately from both buyers and sellers.

    The site flipping game (especially for sites younger than 3 years) have changed dramatically recently.
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  • Profile picture of the author JohnMcCabe
    Since websites (and other businesses, for that matter) typically sell for some multiple of either earnings or profits, make sure you have detailed records.

    Saying "Adsense gets $20+ a day, and I get about 2 - 4 purchases that gets about $25+ in total" is fine for a public forum, but if I'm considering laying down serious money for a site, I want detailed accounts going back to Day 1. I'm also going to want documentation (even if it's just email invoices, deposit notices, etc.).

    It's not that I wouldn't trust you. I wouldn't trust anybody.

    Side note: I read your income as ~$20/day Adsense plus 2-4 $25 sales per month, or about $700/month, which would make the site worth $8k - $16k. So $5k for a site with such short history doesn't seem unreasonable. You said you were keeping it, which, if trends continue, will make the value rise. As far as adding content, you might want to reinvest some of that revenue in a good writer.
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  • Profile picture of the author DeanJames
    Based on what you've said in your posts, it's definitely worth more than $5,000. With your list as an additional asset you should be able to ramp up those earnings significantly and turn that into a site worth multiples of that. It may be prudent, as suggested by nicheblogger75, to grow this further and build up a revenue history over a longer period.
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