Selling your websites/business

[vegasbaby10]

Hi all, I potentially have the possibility to sell our websites to a large, reputable company. We run 12 sites in total and average over 100,000 unique page views per month across the sites.

Any idea how you would go about valuing a site and or business? The sites make around 8k per month and all rank well for the desired keywords. Thanks in advance

[onlineslotgames4u]

I would like to know that as well
Good luck!

[vegasbaby10]

Anyone got any ideas on this? Thanks

[edgarf76]

The value at 8k per month should between 96k to 144k for the business. Some people evaluate sites a lot lower than that.

[TheGooner]

Affiliate sites are like small businesses - like a cafe or restaurant.
In the real world those type of businesses sell for between 1-2x annual profit plus stock and fixtures and fittings.

So rather than a monthly average I'd be looking at a calculation like
: Take the last (12-24) months revenue
: Less last (12-24) months costs to generate
: Less number or hours worked x $20 per hour.

That will give you a real annual profit figure (including unpaid hours) that is something tangible to sell.

Whether it's 12,18, or 24 months will depend on the stability of the income (is it up and down, growing, decreasing?) and also the spread of income. If it's all coming from one program then that is riskier than if it is coming from a spread of 3-4 programs.

I hope that helps.

[Tapsino]

Go with Gooner, he gave a good method for evaluation.

[Moonlight Cat]

The value at 8k per month should between 96k to 144k for the business. Some people evaluate sites a lot lower than that.

Yes, but i think - that the most important factor is - how many new real money players this sites generated every month.
For example, several years ago i have site. At that time this site have bad positions and low traffic. They generate
~ only 1 New Real Money Players every 2 months. This is very low. But site generate every month ~ $2.000-$5.000.
The reason - only 1 player (high roller) who generate 95% of this site income.

[ocreditor]

Yes, but i think - that the most important factor is - how many new real money players this sites generated every month.
For example, several years ago i have site. At that time this site have bad positions and low traffic. They generate
~ only 1 New Real Money Players every 2 months. This is very low. But site generate every month ~ $2.000-$5.000.
The reason - only 1 player (high roller) who generate 95% of this site income.

I agree, this factor is important for the value process but it must be connected to the traffic sources.

You should also check which strong keywords the site is present and from which
players are coming.
Because there might be a scenario where the site is ranked in good position but not generating players because
its not optimized for the user correctly. It might be using the wrong brand, using the wrong offer.. etc'...

But still the the main factor is the revenue (current and past 12 months minimum) all the rest are nice to have to consider for valuating a business.

[grem]

Traffic is one metric but the value of the traffic is possibly more important to know. Also do the sites have any low quality links that would require work to remove, that is important to know the link history and how it gets it's traffic.

good luck

[Voids]

The most important value of a business is the amount the buyer is willing to pay. You can run all the forecasts and assumptions you want but if they aren't willing to meet it then it doesn't really matter. Gooner has covered the main points but there are a number of different ways to do it. You could use discounted cashflow, net assets, dividend valuation.

You will likely know what figure you want & what figure you will accept. If you can provide a valuation or forecast to support this much the better. My website may be worth between £5,000 & £10,000 on the above calculations but I wouldn't want to sell at less than £50,000. So it's irrelevant. That's just my 2-penneth.