How much should you pay for a website that is making money?

24 replies
Lets say someone is selling a niche content website making 500 USD per month from Adsense. Or maybe 1500 USD per month from adsense. What kind of multiple do websites generally achieve?
#making #money #pay #website
  • If you are buying any website do some research about how many visitors are visiting per day and what is the value of the domain ?
    This website "worthofweb.com" will give some rough idea about what is the cost of the domain.
    If you want to check the Ranking, Visitors, Keywords check here "Alexa.com"

    .
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  • Profile picture of the author yukon
    Banned
    Originally Posted by CTHiker View Post

    Lets say someone is selling a niche content website making 500 USD per month from Adsense. Or maybe 1500 USD per month from adsense. What kind of multiple do websites generally achieve?

    There's so many factors it's not even reasonable to throw out a multiple.
    • Is the niche temporary?
    • What's it worth to you?
    • What's it worth to the buyer?
    • Can the site be expanded?
    • Is the traffic source included?
    • Is the seller money claim legit?
    • Is the seller Adsense account legit, or is Google shutting down your account soon?
    • What's Wayback content history look like, is the site all of a sudden GREAT?
    • How any times has the domain transferred in the last few years?
    • etc...
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  • Profile picture of the author rhealy29
    Not enough information.

    First of all, let's assume you can verify the earnings. How long has the site been bringing in that kind of money? I site that makes $500 in profit each month but has only done so for two months is worth a LOT less than a site that's been doing the same amount for a year, two years, etc.

    What kind of work does it take to bring in that type of money? Does the site earn essentially on autopilot? I.e., if you were to buy the site and leave it as is, would it continue to earn? Or does it require constant work to keep up? Can you commit to the work it takes? What is your time worth?

    Why is the site being sold? Has it been built or marketed in such a way that makes it risky or in danger or being slapped down by Google's next update? Is the owner trying to get rid of it ahead of a forecast crash in traffic or earnings? Is there anything on the horizon that could threaten the site's success?

    The dollar amount a site earns each month is not enough information for anyone to give you any kind of even remotely valid estimate. Can you provide some more information?
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    • Profile picture of the author steve1991
      very good article sir. knowledge is gained here.
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    • Profile picture of the author seobuzz
      In order to get exact value of a website and how much you should be paying, depends on many factors. Leave apart the monthly revenue that the website is making. You should be more concerned why the owner is trying to sell his profitable online asset. Should you be selling a website which is making $500 per month without any efforts for $5k? I would definitely NOT do that considering I can make that amount in merely 10 months. For example recently I could see many amazon affiliate sites in auction. It is because Amazon has modified their affiliate commission structure recently.

      However there can be situations when someone needs fund on emergency or have other genuine reasons for selling the website. In that case you should be dealing with the price with the seller.
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  • Profile picture of the author jamie3000
    Be really careful buying these, stats can be faked very easily
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    • Profile picture of the author CTHiker
      I get that feeling... I see several "sold" websites on Flippa that claimed to be making several thousands of dollars, but when I check the url, they don't even exist anymore. I find that a little alarming.
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  • Profile picture of the author CTHiker
    Thank you guys.

    I have several sites, one has been making about 300 USD per month for the past 4 years or so. This is good, but not life changing.

    I am unable to increase the monthly income, so I am considering buying a site that is making more.

    I understand the points you guys made.

    I am want to buy a site that has at least 1 year track record and I really want it to make at least 1000 USD per month. So I was looking for a rough guide as to what I could expect to pay.

    I see there is not easy answer.
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  • Profile picture of the author RichardThessen
    Check all possible statistics before buying. These things are fake sometimes. Fake traffic and wrong assumption of website's actual worth
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  • Profile picture of the author spartan14
    Its simply too much factors i would be careful with this .First it can have a great month with great earnings and the it can decrease on earnings etc .It can be ranked good and then it can decrease etc .Choose to ask a expert in this field
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  • Profile picture of the author maihieubluetech
    Affiliate marketing requires people to be knowledgeable about the forms of product promotion. The better a person is, the more likely they are to make more money. Some basic skills that you must learn initially are:

    Create a website
    SEO (Search Engine Optimization)
    Run ads (Google / Facebook)
    Social Marketing
    Email Marketing
    ...
    It may sound difficult, but if you are a beginner you can learn from each and every one, this is not a form of eating that can bring you passive income and is one way to make money. Money online prestige and most sustainable today.
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  • Profile picture of the author ma247
    Two money making methods are popular in 2017. One is Google Adsense and another is Affiliate marketing. Both need a website and targeted traffic. For a beginner, I recommend starting from the beginning level that includes niche selection, purchasing a domain and hosting, writing and publishing content, SEO and generate organic traffic, Make money.

    And if you have sound knowledge about internet marketing, you can buy a ready website with organic traffic and increase content & traffic as well as revenue.

    You should discuss with an IM expert before purchasing a ready website. Otherwise, you will face a lot of problem after buying that site.
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  • Profile picture of the author DIABL0
    I have never purchased a site.

    I would assume it comes down to how long it's been operating and that you are able to verify the books / real income. I would also think that what are the chances of it continuing to produce income and how much work is needed is a major factor.

    I'm really not a fan of such, seems like it would be too easy to get screwed.
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  • Profile picture of the author mrjackpowers
    If it were me, I'd find out what kind of time and money investments are required to make that 1500 per month. It's not just about the dollars. If that works out, I don't know, maybe a year's worth of income? 500 x 12 = 6000. I believe that's how businesses do it when they sell.
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  • Profile picture of the author Lui Bliss
    In a nutshell, to do it Wall Street style:-

    http://www.investopedia.com/articles...-cash-flow.asp
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  • Profile picture of the author Vex Vane
    36 times average monthly income from previous 12 months is standard.

    For me that is too much and I'd either pay half that max or pass.
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  • Profile picture of the author Harry Exper
    So far no one has offer suggestion of the amount to pay for a website with such monthly earnings. I actually came to this thread to view suggestions of appropriate amount to buy a website with monthly earnings.
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    • Profile picture of the author Vex Vane
      The issue with anyone giving you exact amount is that it is not very smart to go buy a website based on earnings without understanding how much does it cost to replicate them.

      Lets say you use simplistic formula I provided, which is what used to be used, and we count 36x500=18,000. So you pay 9-18k and expect to recover your money in 18-36 months after which its profit.

      Except that is not really how it works because person you are buying from could have spent 50,000 in PPC, to make that 500/mth for few months. And that is assuming he did not just fake report, or use some combined data where a different site, which you are not getting, is earning most of that.

      Put as simply as I can, newbies should not be buying sites based on previous income or they are most likely going to get ripped off.
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    • Profile picture of the author OptedIn
      Originally Posted by Harry Exper View Post

      So far no one has offer suggestion of the amount to pay for a website with such monthly earnings. I actually came to this thread to view suggestions of appropriate amount to buy a website with monthly earnings.
      The amount to pay for any website is what you are willing to pay. No more, no less. There is no standard formulation to determine the fair market value of any website. Too many variables, most of which can't be validated.

      Would you like to see a screenshot from my website that is generating $2M in sales? No problem.

      Thank you.
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  • Profile picture of the author The All Rounder
    You need to crunch some numbers. Is the seller open to negotiation?

    If it is making 1500pm from adsense you could potentially ramp that up with affiliate some high converting affiliate offers related to the demographic.

    But you need to get the website at the correct price. I would also make sure that those stats are 100% verified and not fraudulent. Stats can be easily falsified, so be careful. Rhealy's response is spot on. Agreed!
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  • Profile picture of the author Rory Singh
    If I was selling a website that was making $500 per month that would mean $6,000 per year income. I would probably sell it for 3 X that amount...$18K.

    But just like Spartan said above...the website could lose ranking.

    A lot of marketers use manipulated back link strategies that won't necessarily keep working.

    Then you will need to keep this site maintained with fresh content.

    Google favors marketers who keep working.
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  • Profile picture of the author Roland Bradford
    I think it about $1000 per month.
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    • Profile picture of the author OptedIn
      Originally Posted by Roland Bradford View Post

      I think it about $1000 per month.
      Well, OK, then. We have our answer. That wasn't so difficult, now - was it???

      Thank you.
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      "He not busy being born, is busy dying." - Bob Dylan • "I vibe with the light-dark point. Heavy." - Words that Bob Dylan wishes he had written.

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  • Profile picture of the author glowcup
    Agree you need to first find out what the domain is worth. Take that into account. Then get financials for as far back as you can get. The last Trailing 12 months are the most important. Obviously, you need to do your Due diligence and verify everything you are being told there are plenty of tools/ software out there that you can verify things. Just look hard and if anything looks off then either get a good explanation or move on and keep looking for another site.
    Regarding how much should you pay 2-3x is about normal but we are getting tax returns everything if you are paying 3x. But like mentioned above 1x doesn't mean it is a scam. People sometimes need a lump of cash. You also can do alot more when you have 10k in the bank vs 500 per month it opens up other opportunities.
    Just look into everything as much as possible don't just go off of screen shots etc.. See everything live and that it links to the site etc.. if you don't know SEO then hire someone that does and have them look at backlinks etc.
    Hope this helps!
    Cheers~
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