Selling My Website...Question For You

6 replies
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Hello...

So..niche blogging is nothing new to me but sellings websites is!

I'm wondering how much I can expect to make...

Currently for example I'm building up a few sites that should make me a few $1000 per month overall.

If for example I have one site that has/does the following

1) pulls say $2k per month
2) at least two months of profit (full proof etc)...
3) has a high ranking on Google (top half of first page)
4) plenty of backlinks

How much can I expect?

5-10 times it's monthly profit? so 10 - 20k?

Thoughts please

Cheers
#selling #websitequestion
  • Profile picture of the author J23
    There are a lot of factors that go into how much you will get for a site, but I would say that 10-12x monthly revenue is about the average if you sell it on Flippa.

    That is assuming all traffic is natural, you have a good ranking on the search engines, earnings have been consistent and will stay consistent, etc.

    So for the site you described, yeah I would think you can get around 20-24 gs for it.
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  • Profile picture of the author MarkSherris
    Thanks for the reply!

    Yeah that's what I was thinking because my traffic is from natural organic listings so it's not a case of doing any paid advertising at all.

    And also the consistently in income is there.

    Cheers again,
    I think I'll be looking into this :-)
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  • Profile picture of the author jitterbug978
    I would say expect about 8x your monthly income. But you may have a hard time selling a website for $20,000.. Everything must look 100% legit!
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    • Profile picture of the author Domenic Carlson
      To tell you the truth, it's hard to say what the value of the website will be to a buyer especially since everyone is different. At the height of the dotcom bubble you might get half a million - now it's probably significantly less.

      As a financial person I would not pay for it more than the net present value of the sum of the future expected cash flows. That is, add up all the money that the site would generate in the future (minus expenses) and discount those cash flows by a reasonable rate of return to the power of how many years into the future that cash flows come in. You can google "Net Present Value Calculation" for actual formulas for this.

      Hope that helps.
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  • Profile picture of the author Flipfilter
    Hi Mark,

    Jitterbug is spookily accurate with his figure of 8x. From March 2010 - present the average sale price multiple (of gross profit) for sites earning more than $50 USD per month looks like this

    Flippa - 8.2x
    Digital Point - 3.7x

    We have a site valuation tool here - Website Valuation Calculator | Website Flipping by FlipFilter that will compare the projected figures of your site against previous sales and generate a 'statistically likely price' taking into account the traffic, domain age, page rank, domain type and revenue.

    As a human guess I would say you could expect between $11 and $18K for the site dependant on Page Rank and visitor numbers. You've also seemingly picked up on the fact that the more history of profit you can show, the more value your site has, as people are now quite savvy to short term WSO flips or oversold link directories that no longer have the potential to generate cash.

    I hope this helps

    Justin
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  • Profile picture of the author MarkSherris
    Thanks for all the replies.

    Flipfilter: cheers for your reply, it's very helpful!

    I'd be happy with 8x so that's decent to hear, obv won't expect it but it's something to look into in the future.

    Cheers
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