Looking for some advice on selling price (180+ ftd's per month)

[wolfie]

Hey guys and gals,

I am looking for some advice.

A party has expressed some serious interest in buying one of my sites.

For now they are interested in buying only the site, not the affiliate accounts.

Now of course, the big question is, how much would my site be worth?

Some key statistics:

• Age of site: 3 - 4 years
• Traffic: slight decline (-10%) in past months (mainly due to not updating)
• Clean backlink profile - Never any penalties
• Online casino aff portal
• High player value
• Number of FTD's per month (calculated over past 3 months): 180+ (between 150 and 220 per month)
• Current average revenue per month (all rev share): 40k euro
• Traffic: 100% organic
• Costs: next to zero (only hosting)

What could a site like this go for?

Obviously, I do not have to sell as revenues are very strong and number of ftd's are steady, but I am thinking about focussing on some other projects. Being a one man band can be very straining with too many sites to keep fresh, as some might agree.

Any input from experienced fellow affiliates is most welcome.

Please, no PM's asking about url, site stats and such. Right now I am only wondering if it would be worth it to sell.

[casinobonusguy]

I have been approached by a party who wanted our main website but could not afford to pay for it plus the accounts.You have done the hard part already so not sure why you would even consider selling .I hired somebody to manage my sites rather than selling in the end.But to answer your question I would not sell for anything less than 12 months revenue without the accounts .

[wonderpunter]

I have been approached by a party who wanted our main website but could not afford to pay for it plus the accounts.You have done the hard part already so not sure why you would even consider selling .I hired somebody to manage my sites rather than selling in the end.But to answer your question I would not sell for anything less than 12 months revenue without the accounts .

12 months revenue? that would be an absolute steal!!... most would say 3-4 years and if its a casino group buying it most likely they would recoup that amount in 1-1.5 years at 100% earnings on their own products, then you have growth.. if you are growing consistently does it make sense to add that in there?

Why don't you invest some more funds and see if you can turn your 10% decline into 10% monthly growth and hold out for bigger numbers?

[superhero]

When you buy or sell website usually the price will be monthly revenue * 3 to 5 years
Today you make 480k yearly
So, in your case, you have 40k*36= 1,440k to 2,400k
This will give you the value for all you hard work until now and some upfront payment .


Sent from my ASUS_Z00AD using Tapatalk

the most common revenue is 3 to 5 years
it will include all your hard work of getting this position

[Scampi]

most would say 3-4 years and if its a casino group buying

I would have thought that but with the affiliate accounts? If you are struggling to keep the site up to date, I would seriously consider employing someone rather than selling it. My first employee started today as my workload was getting too much.

[Jokerman99]

12 months revenue? that would be an absolute steal!!... most would say 3-4 years

Who are these people? If it included affiliate accounts 3-4 years might be possible, but without, I doubt any affiliate big or small would pay 3 years, let alone 4. For a site like this that's a year old without any brand value, (likely) poor user metrics, very recent spike in growth (if SEMRush is accurate) and no real USP, 12-18 months is a far more realistic price. If someone offers you 2 years for this site without accounts, I would bite their hand off.

[wolfie]

Thanks all for your comments and some very valid points.

I don't know what site you are referring to, Jokerman99? I did not list the url of the site, so I am not sure what you are saying about poor metrics and no brand value. Unless you are a clairvoyant, of course. The site is over 3 years old and traffic has been very stable (and growing) for the past 24 months, except a slight decline in the past two months.

[Malikbhai]

It would be a tragedy if you sell this site for anything short of needing funds for family emergency. It's becoming next to impossible to gain traffic visibility for new casino based websites through google.
If you cannot handle it yourself; hire someone locally, like most companies do. Let him or her manage it. You can pay a basic salary plus a small sales commission on top. Many affiliate managers would love to take this job.
Unless you got millions in the bank; and are already doing a business that is generating twice of 40k euros per month; do not do it. You will regret it.


--

I was worth $15 million in 2002 (head of a BPO company that survived the dot com bust). Had zero dollars in the bank by 2006. All because of this kind of self confidence BS. It took me a decade to recover.

[yeahfree]

there are a couple of more things that we dont know that might have an influence on the price.
is it a specific niche, is the niche declining, or rising.
is the site targetting a certain country, if so, what is the legislation status.
backlink profile, strong & natural, or tricky.

anyway, 180 ftds is pretty solid (goed gedaan!)

[Jokerman99]

Thanks all for your comments and some very valid points.

I don't know what site you are referring to, Jokerman99? I did not list the url of the site, so I am not sure what you are saying about poor metrics and no brand value. Unless you are a clairvoyant, of course. The site is over 3 years old and traffic has been very stable (and growing) for the past 24 months, except a slight decline in the past two months.

Apologies, I assumed it was the site in your signature

[Progger]

12 months revenue? that would be an absolute steal!!... most would say 3-4 years and if its a casino group buying it most likely they would recoup that amount in 1-1.5 years at 100% earnings on their own products, then you have growth.. if you are growing consistently does it make sense to add that in there?

Why don't you invest some more funds and see if you can turn your 10% decline into 10% monthly growth and hold out for bigger numbers?

Oh punter u shold know it better....nobody pay for 3-4 years....because nothing is save....this page can drop tomorrow and never come back...

180 fdp,40k is good - i would not sell it....

[wonderpunter]

Who are these people? If it included affiliate accounts 3-4 years might be possible, but without, I doubt any affiliate big or small would pay 3 years, let alone 4. For a site like this that's a year old without any brand value, (likely) poor user metrics, very recent spike in growth (if SEMRush is accurate) and no real USP, 12-18 months is a far more realistic price. If someone offers you 2 years for this site without accounts, I would bite their hand off.

SEM Rush is never accurate, and they only use desktop results which vary hugely to mobile.. google analytics, search console and real time sign ups are the only stats that count when negotiating a sale, btw.. Casino brand owners don't want affiliate accounts they want to integrate their own brands so from an investment point of view the cost can be recuperated within 1-1.5 years or less based on them making full comms (no affiliate to pay 35-50% for each position)

[wolfie]

Apologies, I assumed it was the site in your signature

No problem. Even then, Semrush is way off with its data on the site in my signature. So far off on, well, everything, it's laughable.

[Strider1973]

I probably wouldn't sell either. Just continue to collect the cash-flow.

But I think many are expecting a too high sales price. Don't forget that this is without the affiliate accounts. So you'd have to figure out what the aff-account is worth once you have sold the site. As you have other sites, the aff accounts won't suddenly become worthless (because you don't send any RMP there anymore), but you might experience a drop in revenue share?

As the price is without aff account, I'd try to estimate the revenues the site generates per month with the new players.

So that might be 200 players X 100 EUR CPA = 20k EUR/month. With 1.5x yearly revenues you should get 360k EUR. This is really the minimum price you should sell the site for.

[casinobonusguy]

12 months revenue? that would be an absolute steal!!... most would say 3-4 years and if its a casino group buying it most likely they would recoup that amount in 1-1.5 years at 100% earnings on their own products, then you have growth.. if you are growing consistently does it make sense to add that in there?

Why don't you invest some more funds and see if you can turn your 10% decline into 10% monthly growth and hold out for bigger numbers?

I am here to tell you that nobody is paying 3-4 years for casinos sites these days ,I have been party to a few offers where they are getting maybe 24 months at best which is why we did not sell

[Triple7]

I am here to tell you that nobody is paying 3-4 years for casinos sites these days ,I have been party to a few offers where they are getting maybe 24 months at best which is why we did not sell

It depends also on the market I guess and on some other factors.

Few weeks ago Catena paid 3,6 upfront based on revenue, based on profit over 5 for a NJ bonus website and in december about 2,9 based on revenue for some German sports betting sites.

All included affiliate accounts.

[betpro]

Look. If you aren't selling the revenue of the business (affiliate portfolio's) then the site is only worth what the recent traffic is reflective of.

If you are doing 40k a month of revenue and doing say 200 FTD per month, then in the last 12 months, you would have signed up 2400 players.

40,000/2,400 = player value p/month of 16.66 euro to your site.
So based on 200 sign ups a month at 16.66 value per person, this would be the value to the buyer without an affiliate account starting from scratch:

Month 1 - 200 players = 3332 euro
Month 2 - 400 players = 6664 euro
Month 3 - 600 players = 9996 euro
Month 4 - 800 players = 13,328
Month 5 - 1000 players = 16,660
Month 6 - 1200 players = 19,992
Month 7 - 1400 players = 23,324
Month 8 - 1600 players = 26,656
Month 9 - 1800 players = 29,988
Month 10 - 2000 players = 33,320
Month 11 - 2200 players = 36,652
Month 12 - 2400 players = 39,984

Now based off consistent 200FTD and consistent revenue of 16.66 player value per month, then it would take the buyer 12 moths to acquire 2400 new players and their total revenue would be approx 260k euro after 12 months. This is of coarse based on all things running the same.

So if it's stable and consistent, then you could probably get 3x 260k, if it's downtrending 10% then you can expect much lower total value and probably a 1.5x multiplier at max. People down buy businesses on the decline!

[MMM]

Interesting math (need to think about it) but i'm not sure i would look at it this way.

Geo affects a lot - i assume you are not US focused so it's a plus.
KW - is there a specific major KW which gets most of the conversions or things are more spread.

Since Catena entered the market few years back - the previous 12+ months multipliers became irrelevant. No reasonable site is now sold below 18-24 months multipliers (unless some special semi-related reason for the sale is inplace).

In your case - I wouldn't even consider selling below 24 months multiplier (maybe slightly less since aff accounts not involved). Above that - up to your specific situation. Do you think you will make more money by selling and investing in other projects? How much effort/time it takes to keep the site on current level? ETC.

Good luck.

[nwalker]

I can put you in touch with someone who handles M&A's of this type all the time in the gaming industry. They have brokered some of the biggest M&A's recently, know exactly how to value your business and will match you with the best buyer.

If you're serious about proceeding or just want a chat with someone that does this day in day out let me know and i'll introduce you.

[allfreechips]

Just think of what would make you happy selling it vs what you would not sell it for. Then simply ask for that amount you would be happy selling for, if they say no then move on.

There are many variables there, brand, short name ext that may add value beyond just FTD's