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how much is my business worth? $1000 monthly profit

by nethead01
3 replies
I have a website that brings in 1k profits per month on average. It is a service based business not auto pilot.

How much you think I could sell and where would be the best place to sell?

1k visitors per month, a few keywords in page 1 google
#business #monthly #profit #worth
  • Profile picture of the author Shane N
    An online business is typically worth about 12-24x the monthly revenue. Basically 1-2 years worth of revenue (profit).

    So at $1,000 per month profit, that would value your business at $12,000 - $24,000. However, it also depends what type of service must be performed for clients. If you value your time at $5 per hour and your "profits" are $1k per month... And the person that buys your site values their time at $10 per hour... then that's only $500 per month "profit" so it depends largely on what the nature of the business is.

    Also, if the business has a lot of potential for growth, it could be valued at even more... It's all about "what it's worth" to the person buying the site.

    You could try selling it on Flippa or here on the Warrior Forum's sites for sale section.

    Best,
    Shane
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  • Profile picture of the author nethead01
    Thanks Shane! I think im going to list in in flippa maybe on Monday and hope for the best
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  • Profile picture of the author souravdas32000
    The value of your business is typically the net present value of all the future incomes that it would generate.

    Considering your site earns $1000 per month, the risk-free interest rate in US (the 3-month T-bills) is 0.25% per annum and that your site would run for 2 years giving the same return of $1000 per month, the Net Present Value of your site would be around about $23,938. If it runs for 1 year, the value would be $11,984.

    This is how real-life projects are evaluated. I would not sell it for less than these values.

    Regards
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