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  1. #1
    casino2k.com's Avatar
    casino2k.com is offline Private Member
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    Default Gambling website appraisal

    I'm considering selling [some of] my websites and I'd like to understand how to appraise them.
    Let's say each month I get $z revenue with y new players per month and my website has good serps for relevant keywords.
    Is there a sort of equation to fix a price?

    For example could PRICE = z x 12 months be a good starting point?
    Matteo » Casino2K

  2. #2
    TheGamblingGuru's Avatar
    TheGamblingGuru is offline Private Member
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    Quote Originally Posted by casino2k.com View Post
    I'm considering selling [some of] my websites and I'd like to understand how to appraise them.
    Let's say each month I get $z revenue with y new players per month and my website has good serps for relevant keywords.
    Is there a sort of equation to fix a price?

    For example could PRICE = z x 12 months be a good starting point?
    The first rule of good salesmanship is to price it out at twice the dollar amount you are really willing to take for it and then let the prospective buyer negotiate you down 50%. That way they will feel like they stole it from you. You both will be happy with the deal and it will be a win/win situation!
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  4. #3
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    Quote Originally Posted by casino2k.com View Post
    For example could PRICE = z x 12 months be a good starting point?
    Most real world businesses will actually sell for between 4x and 8x annual earnings but that's usually because they have significant fixed assets, solid customer bases and demonstratable goodwill behind the brand name.

    In the virtual world, especially in the online gambling environment, little of that is true for most affiliates, and so the resale of the business as a going concern is much lower.

    Throw in the legislative uncertainty around United States, Germany, France and it all serves to push that multiple down.

    So with all that in mind - I think that your idea of 1 x annual earnings could be a good start point - if you are selling the affiliate accounts that generate that income as well.

    (Without those accounts then the sites are only worth what the new players will generate, and there would have to be different metrics used)

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    AmCan (10 December 2009), casino2k.com (9 December 2009), Chalkie (9 December 2009)

  6. #4
    smv80 is offline Public Member
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    Quote Originally Posted by casino2k.com View Post
    I'm considering selling [some of] my websites and I'd like to understand how to appraise them.
    Let's say each month I get $z revenue with y new players per month and my website has good serps for relevant keywords.
    Is there a sort of equation to fix a price?

    For example could PRICE = z x 12 months be a good starting point?
    I have always been told that 12 months revenue is a good starting point. Please send me a PM with the list of sites when you are ready to sell.

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    casino2k.com (9 December 2009)

  8. #5
    bonusbeast is offline Public Member
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    I have also always heard thre basic rule of thumb is around 1x your annual earnings, which can be a little different in the gambling affiliate industry as the earnings can fluctuate so much. But I thinks you could ask for a little more if you will be giving your affilate accounts with active players. Also PM me the sites and asking prices.
    Thanks

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