How much $$$ for a site?

17 replies
Hello!

A friend of mine started a website back in 2003 in AUTOMOBILE industry.
The forum (the site's main point) has over 500,000 threads and over 50,000 active members. It is in the low 70,000 on Alexa.

He has a few adsense ads there, but he can no longer take care of the sites because of other life projects and wants to sell it, but has no idea how much to ask for it.

I know I didn't give out many details, but I am sure some Warriors could give an idea of what to expect for this site, the minimum amount...

Thanks,

Alex
#$$$ #site
  • Profile picture of the author radhika
    Sale price = profit on the site per month x 9 months

    Some people sell it for 12 months profit too.

    .
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  • Profile picture of the author Ron Killian
    I agree, income x 9-12 months. Though 6 is all some will pay. And you'll get the ones that want to steal it for 3x.
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    • Profile picture of the author Alex Sol
      Originally Posted by Ron Killian View Post

      I agree, income x 9-12 months. Though 6 is all some will pay. And you'll get the ones that want to steal it for 3x.

      Thanks for the reply, sounds fair, but what if the site was not been monetized at all? He just added the adsense on it a few months ago, prior to that he was not monetizing on it..
      So I was wondering if you could sell a site based on the number of users on it...
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      Alex Sol, Full time online marketer since 2007
      The Extra Paycheck Blog | Extra Paycheck Podcast
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      • Profile picture of the author Ron Killian
        Originally Posted by Alex Sol View Post

        Thanks for the reply, sounds fair, but what if the site was not been monetized at all? He just added the adsense on it a few months ago, prior to that he was not monetizing on it..
        So I was wondering if you could sell a site based on the number of users on it...
        Of course there are always variables. I sold a bunch of sites last year and ended up about income x 6 months. One did bring in more because of it's age and it did have a ton of backlinks. But every one that asked, wanted income and traffic stats, every one.

        I guess it also depends on if you can sit on it for a while if you need to. I didn't want to, so might have gotten more if I waited, who knows. I just wanted done with them. Some times it's just finding the right buyer, or them finding you.

        I would think if you show the member count and activity, it could boost the price. Then again, just because you have traffic and members, doesn't mean they are surfers that even buy anything. Not saying that is the case, but would be my thoughts if there was little or no proof of income. Naturally every one want to have a chance of it paying itself off sooner or later. Other flippers have said sites that have adsense do usually sell for more, so that might be a plus.

        Just my experience. Could differ for a another.
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        • Profile picture of the author webpromotions
          Originally Posted by Ron Killian View Post

          Of course there are always variables. I sold a bunch of sites last year and ended up about income x 6 months.
          Maybe I'm missing something, but why in the world would you sell a site at 6 months income when you could just wait another 6 months and double your money?

          This just doesn't make any sense, unless:
          1. you are in desperate need of some fast cash
          2. you know the site will NOT sustain the 'advertised' monthly income
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          • Profile picture of the author Ron Killian
            Originally Posted by Doug English View Post

            Maybe I'm missing something, but why in the world would you sell a site at 6 months income when you could just wait another 6 months and double your money?

            This just doesn't make any sense, unless:
            1. you are in desperate need of some fast cash
            2. you know the site will NOT sustain the 'advertised' monthly income
            Because the sites where a TON of work to keep up and maintain. I probably could have just let them run, but the income probably would have gone down as well, and then they'd be worth very little.

            And frankly I just wanted out. Was so tired of the market. It turned into a huge amount "work" that I didn't want to do any more and a market I did not want to be in any more. Ya know, when you hate to even do it any more?

            Plus some sites in some markets are just not worth as much.
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  • Profile picture of the author edpudol1973
    Well it should be measured in different ways, traffic, how active the members are. The niche of the site, and the age of the site. Total back link, total index pages, and PR are also other factors to decide what is the price of the site
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  • Profile picture of the author Miguel Oliveira
    Thank you for the information, I am thinking about selling a website myself but didn't know how much to ask for it (was actually thinking about asking the average for sites of the same dimension, but that formula seems much more fair).

    Also, dnscoop as an estimate of the value of a website, but I don't think it is that accurate.
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  • Profile picture of the author briankoz
    A smart buyer will look at A LOT more than just the traffic, rankings, sales, etc..

    Traffic by itself doesn't necessarily mean a whole lot. Is this stable traffic? Where does it come from? What type of traffic is it, and are they buyers? Are there any good rankings where quality traffic is coming from?

    Sales by itself doesn't necessarily mean a whole lot either. Where did the sales come from? How much was spent getting it? Is it a stable income? For instance, if someone does a launch and makes a ton of money in a week from JV partners, you probably shouldn't pay 6x what they made on the launch if they aren't going to make many sales after that. Or on the flip side, maybe the person has a failing membership site that has gone down in income from month to month ... or perhaps some other factor is showing that sales are on the decrease.

    Even members by themselves doesn't necessarily mean much (for membership sites, forums, etc.). How many of these "members" are legit/real? How old are those members/leads? Is there a way for you to easily contact them? What is the open rate and response rate of those leads?

    Many people selling websites are asking way more than what they really should be, while there are a few gems that are way undervalued because they haven't found the right way to monetize their sites yet, they don't value what they have, or they're just looking for quick money.

    If you do enough searching, you can find some sweet deals from desperate sellers looking for a quick buck. I almost view it as "foreclosures of websites" in a kind of way. I've purchased websites for maybe 1/100th to even 1/1000th of what they're worth, but the seller either doesn't know what to do with the site or desperately needs money and can't take the time to do much else.

    Brian
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  • Profile picture of the author Alex Sol
    Thanks for all the replies.

    I will try to talk my friend into monetizing the site better, because the 50,000 members I mentioned - these are active members... The number has been growing for the past 6 years, the site was even featured on local television a few times...

    We'll see
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    Alex Sol, Full time online marketer since 2007
    The Extra Paycheck Blog | Extra Paycheck Podcast
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  • Profile picture of the author Joseph Then
    One good way to find out is to go to Sitepoint.com or BuySellWebsites.com, look for completed sales of forum or membership websites.

    Find one sold website whose profile closest to your friend's site, look at how much is being sold and based on that as a selling price.

    Maybe that could help...
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  • Profile picture of the author eddiebarkie
    Alex - Not on this topic, but I just read your blog on the coloring pages and the local baker. Got my thinking juices going. Thank you for it - I'll be back to read you often...ed....
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  • Profile picture of the author Sean Hoffman
    Could you pm me a link to said site. And maybe some statistics. I can give you a general range of what to expect when you sell. I might also be interested. Never know...
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  • Profile picture of the author InternetM39482
    Sites have gone as high as 60x monthly revenues.

    This November, I sold a website with 10,000+ posts, around 1000 threads and 400 members, $100 per month for $2250.

    I think you should ask your friend to try monetizing for some months. With a good history of revenue, and such good stats, you might well go into the 12x region.
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  • Profile picture of the author Alex Sol
    Thank you all for the input. Seems like he's got an offer for $60,000 - now he is reconsidering if he should be selling it... We'll see what happens but as I mentioned before, I will encourage him to keep it
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    Alex Sol, Full time online marketer since 2007
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  • Profile picture of the author kristisayles
    Considering selling a parenting site I own...interesting info.
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  • Profile picture of the author timreed
    It's all very well buying into sites, but if you have no business brain and have no idea of bookwork, then how will you know if it will be profitable.
    If I were you then go into something that works.

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    This is all very true, but you need to take action, otherwise nothing will change.
    I have realised that the internet and internet marketing is the future.
    How would you like to earn up to $2000 (£1300) per sale, have your very own retail centre with over 1800 products.
    Never done this before? Neither had I.
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    I have the added bonus of, one of the top internet marketers on hand to give you help too.
    Internet Marketing is NOT rocket science. In fact, when you have learnt the basics, it's so simple to do, and a licence to print money.
    If, someone said to me "Here's a website, products, full training, full support, coaching and mentoring. A customer support team. People to take calls for you, and you can make $2000 (£1300) a day.
    What do you think I would do?
    Why do people make excuses? Is it because they really don't want to make more money, or they just want money for nothing?
    Or is it the comfort zone thing?
    Take a look at global-income-system.
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