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  1. #1
    SitePoint Enthusiast
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    how much to sell site for

    I am considering selling my site, J-scripts.com, which currently receives 2k page-views/day. The only problem is I don't know where to start the pricing. Could I get some helpful tips or prices that you consider fair to both parties involved?

    I also am considering selling Free Funny.com which pulls in about 3k page-views/day and the domain name ToBeWed.com. Any help would be much appreciated.
    Jonathan Malm

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    jonathanmalm@yahoo.com

  2. #2
    SitePoint Evangelist
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    Question

    Are you making money off of your sites? How much?

  3. #3
    SitePoint Enthusiast Tommy Lai's Avatar
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    If the sites are showing profit then you could start valuing it at 5 times the turnover plus any assets you have.

    Valuations are down to the eye of the beholder. If someone really wants it, only then can there be a true worth. Otherwise it's just all hyperthetical.

  4. #4
    SitePoint Enthusiast
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    Well I have it valued at 20k on greatdomains.com. Does that sound reasonable? (I'd prefer not to disclose the profits I receive from J-scripts.com)

    I'm considering 5k for FreeFunny.com, and 1k for ToBeWed.com.

    Any input is much appreciated.
    Jonathan Malm

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    jonathanmalm@yahoo.com

  5. #5
    is very happy now :) Itay Neeman's Avatar
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    Jonathan,

    Unfortunately, Traffic isn't worth to much these days. You can't make too much money off it and even if you can it requires a great deal of patience, meaning it will take a lot of time to get your investment back and thats a bad ROI.

    Anyway, without knowing your revenue for either sites we cant really evalute how much they cost. If you want to use the multiplier method you need to know how much other sites in your area of work are worth, how much they make, and divide those 2 figures and you get your multiplier (with around 5 different websites and than make an average). Then multiply your revenue by that and you get your value.

    GreatDomains Appraises mainly domains and not websites, and domains, without a buyer, are worth the registration fee you paid on them unfortunately.

    Unless you have sellable assets (such as your own propieraty software/scripts) then only your revenue can count as assets.

    If you want a good appraisal of your site, I am sure with the right info any one here at Sitepoint would be willing to help.

    This info could be useful:
    Revenue per month, and go as far back as you can (you need to show growth in revenue or lack of growth or negative growth, very important)

    Traffic per month (pageviews per month, pageviews per day and any more info you can give, also provide historical statistics, to show growth as stated above)

    Demographic info (Different demographics are worth different amounts of money)

    Operating costs (Hosting, Domain, Article writers, whatever you pay for)

    Information about your market and your competitors (show their growth, your growth compared to their growth, how much they make, how much they lose, how much it costs them)

    Thats basically it. I would love to help you out, just post the info (I know you dont want to divulge your revenue and statistics, but an evaluation can't be done without them).

    Best Regards,
    Itay Neeman
    Itay - [email] [icq]
    Darklight Studios - Bringing light into gaming
    Pretzel Wisdom
    - Mine... All Mine! coming soon...

  6. #6
    SitePoint Guru phanie12.geo's Avatar
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    I successfully sold one of my sites last December with advice from some articles that I read, some advice from these forums and some advice from the Get High (Traffic) forums.

    I was told that usually a profitable business can be sold for three times what it profits in one year. BUT, the Internet is very volitle and ever-changing so you set it at just one time. That is what I did and it seemed a fair price. I posted it for sale on both ebay and the Get High (Traffic) Forums under the "I Want to Sell My Site" Forum following their guidelines and I got many inquires from both sources. I don't remember which one I actually got my buyer from though.

    I then had the buyer sign a Domain Name and Internet Business Transfer Agreement Contract that was notorized and had him send me payment first in the form of a cashier's check. After I deposited the check I made the proper arragngements with Network Solutions for transfer of the domain name and also transferred the web host.

    I hope this information helps you with your sale.

    Stephanie

  7. #7
    is very happy now :) Itay Neeman's Avatar
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    Stephanie,

    Could you please tell us what site was that? (I dont mind going into Get High (Traffic) Forums and finding the post, I just need to know what site.

    I am very interested in sites that have been sold, you dont see to much and I would like to know as much information as you are willing to give, such as what was the multplier in the end regarding revenues, stuff like that.

    Best Regards,
    Itay
    Itay - [email] [icq]
    Darklight Studios - Bringing light into gaming
    Pretzel Wisdom
    - Mine... All Mine! coming soon...

  8. #8
    SitePoint Evangelist
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    Question

    What is your reasoning for not saying how much money your site is making?

  9. #9
    is very happy now :) Itay Neeman's Avatar
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    Keep your private things private

    Some people prefer to keep their private things private. As people dont give out their salary, some prefer not to give out the revenue. Sometimes it is high, sometimes it is low, sometimes it is questionable, people prefer to keep it private.

    I dont think I would divulge my revenue (not that it is existant or anything ) for the world to see.

    Think about it.

    Itay
    Itay - [email] [icq]
    Darklight Studios - Bringing light into gaming
    Pretzel Wisdom
    - Mine... All Mine! coming soon...

  10. #10
    SitePoint Enthusiast Tommy Lai's Avatar
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    Originally posted by jonathanmalm
    Well I have it valued at 20k on greatdomains.com. Does that sound reasonable? (I'd prefer not to disclose the profits I receive from J-scripts.com)

    I'm considering 5k for FreeFunny.com, and 1k for ToBeWed.com.
    Don't sell yourself short. Your valuations sound fine to me, problem is you now need a buyer that will agree to those valuations.

  11. #11
    SitePoint Enthusiast
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    I have just been informed by some of my associates that I should not divulge too much information about revenue and such. I can see the logic in this, so I make it a point to share that information only when it is necessary.
    Jonathan Malm

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    jonathanmalm@yahoo.com

  12. #12
    SitePoint Evangelist
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    Hmm

    If you are publically asking for a value on something you should provide as much information as you can.

    He made it public by asking for a value...

    I was just interested in his reasoning. Maybe he's in divorce proceedings and doesn't want the ex's lawyer to know.

    But I do hope he tells potential buyers.

  13. #13
    SitePoint Guru phanie12.geo's Avatar
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    The site I sold was www.lingeriemonthly.com .

    Stephanie

  14. #14
    is very happy now :) Itay Neeman's Avatar
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    He's got a point!

    Jonathan,

    Unfortunately, rgremill has a very valid point. You came to ask asking for a evaluation of your websites, but you did not give us the key factor in evaluating it. Revenue. You even came with a price you thought is reasonable, and asked our opinion, but still did not give us that info. We can't give you an estimate without it.

    And in regards to whether people come to buy it or not, if you want it to be from these forums, they might see the 20,000$ you asked us about and get a bit scared, since they dont see any info as to why it is worth so much.

    You could PM me with the info I asked and ask for me to calculate how much I think an interested buyer would buy it for with all that info, and just post the end result here without the info.

    Itay
    Itay - [email] [icq]
    Darklight Studios - Bringing light into gaming
    Pretzel Wisdom
    - Mine... All Mine! coming soon...

  15. #15
    SitePoint Evangelist
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    Congrats

    phanie12.geo on selling your site.

    Are you working on another project you might sell soon?

  16. #16
    SitePoint Guru phanie12.geo's Avatar
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    Hi rgremill,

    Thanks. I am working on another project but I think I will keep it this time since I miss that site.

    Right now I help others with online marketing, e-commerce, search engine optimization since I have much experience in those areas and I am trying to get a web development business off the ground.

    Stephanie

  17. #17
    SitePoint Co-founder Matt Mickiewicz's Avatar
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    Companies are traditionally valued at 1.5 times annual sales or roughly 25 times annual earnings (profits). That's a good yard stick to apply to anything that you're trying to sell, especially these days when eyeballs don't count for much at all.
    Matt Mickiewicz - Co-Founder
    SitePoint.com - Empowering Web Developers Since 1997
    Follow me on Twitter.


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