So I have a business that is doing pretty good. Brings in about $1500 a month with very little work. I'm looking at going back to college and am thinking about selling so I'm wondering what it might be worth. If it's worth it, I may sell, otherwise the $1500 is still pretty good.
It's been running about 4 years. I basically sell a bunch of niche educational videos and templates. It's in a popular niche that is on the up and up... and it could easily be expanded with extra products etc.
In 2009 I made $17,000 selling them on DVD.
In 2010 I switched to digital downloads only and my take dropped to about $12,000.
In 2011 I updated my site and bundled my products and made $20,000
That figure is after my credit card processor fees but doesn't include my costs which are pretty low. For the accounting books I throw in every receipt I can find (computer equipment, magazines etc) but in reality my only costs are hosting and the 8% CC processor fee. And a $5.30 DVD if the customer pays the extra $19.95 for a backup DVD.
As for promo I advertise on Craigslist. I have about 15 ads running on there. I have a bunch of You Tube videos that pull in some traffic and I'm front page on Google for a few of my best keywords. I have an eBay page but get no sales from there. I think people follow my links back to the site and buy direct.
I used to use Google adwords but when I once polled my purchasers they all said they found me via natural search so I gave up.
In 2011 I got about 120-200 visitors a day, and over 200 sales for the year with 5 returns. My usual sale is $95 but if the customer also wants a backup disc I charge an extra $19.95 and ship a dvd via Kunaki.com for $5.30
I dont really put much time into the business and it could well be developed further. I could make lists of purchasers but have not bothered creating new products or marketing to my list.
I sort of lost interest in the niche and just let it tick over. I have a full time job, have another product I'm working on, and am studying to go back to college so time is at a premium.
You always hear different theories about how to value a business such as 7 times the yearly earnings etc (although is that realistic because if it is then great!). But I'm interested in what you warriors think, as to be honest, you guys would be among my target buyers.
Again I may just keep it, because $1500 a month is rent and bills. But a nice lump sum right now would be great...
I'm on the fence. What do you guys think? Is it worth me selling? And what might it be worth?
Thanks for your help