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  1. #1
    Trash Boat mkoenig's Avatar
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    Question Should I sellmy website? Questions regarding selling websites.

    I want to know if there is any formula out there that people are using, or at least the thought process.

    Should i sell a site that makes $1-3 a day for $500 (this is just an example not a real website)

    In other words.. should you sell a site for a small payout or just sit on it an receive a small daily income?

    I've been thinking about this for awhile as i have a lot of small revenue sites, plus i wanted to start a new thread in this part of the forum...

  2. #2
    SitePoint Guru Ruben K.'s Avatar
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    Usually the formula is something like ( monthly income * 12 ) but it's pretty hard to estimate as there are other factors like content, identity and traffic

  3. #3
    Trash Boat mkoenig's Avatar
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    Ive heard that somewhere else before. So that is pretty much the standard.

    I wish there was some selling guide (official) like a consortium that would come up with a formula that I could show buyers.

    Thanks, thats a start.

  4. #4
    SitePoint Guru Ruben K.'s Avatar
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  5. #5
    Intoxicated with the madness petertdavis's Avatar
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    The market isn't really established enough to have a strict formula. 1 year revenue is a really rough and dirty way to value a website. We could look at B&M business sales to establish a more sane standard. A B&M business will typically sell at 3 to 5 times EBITDA.

    There are factors that should be kept in mind that not a lot of people think about too. For example, how much time does it take to keep a website at the level it's currently earning? If you are considering to buy two websites, both earning $2,000 a month revenues, would you be more likely to buy the one that takes 50 hours a week to keep up, or the one which takes 2 hours a week to keep up?
    Peter T Davis

    I buy forums - PM me if you're selling.

  6. #6
    SitePoint Wizard silver trophy Jeremy W.'s Avatar
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    As Peter says, there will always be ranges. Ultimately valuation is a function of how desirable the property is.

    For us, fit is most important, followed by traffic, followed by great content, followed by great monetization, followed by ease of integration.

    So if something's a great fit, has great traffic, great content, great monetizatoin and easy integration, we'll pay a higher multiple than if it only fits 2 or 3 of our 5 criteria.

    And, to answer the original question, we have a model we use internally to set low/medium/high valuations for properties based on a dozen factors. Obviously we can't share that publicly, but it basically varies between 1x revenue and 10x EBITDA.
    SVP Marketing, SoCast SRM
    Personal blog: Strategerize
    Twitter: @jeremywright

  7. #7
    Trash Boat mkoenig's Avatar
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    Quote Originally Posted by Jeremy W. View Post
    And, to answer the original question, we have a model we use internally to set low/medium/high valuations for properties based on a dozen factors. Obviously we can't share that publicly, but it basically varies between 1x revenue and 10x EBITDA.
    OK Share it privately... send me a pm


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