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  1. #1
    SitePoint Member
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    help me put a value to a site..

    I am negotiating the purchase of a website privately and could use some input on what it might be worth.

    The site serves a niche audience in a specific area of sports/fitness. The site features a lot of unique content in the form of equipment reviews, articles specific to the niche, and a few other little tidbits. The articles are really a blog-format with a typical post fetching a dozen or so comments.
    • Site is PR5.
    • 4 years old. lots of backlinks.
    • Alexa rank of ~250,000.
    • Decent google placement on relevant keywords (lots of page 2 with a couple of more specific on page 1). I believe some SEO work could really improve this.
    • Traffic is 70,000 uniques/month (60k new, 10k return visits)
    • Opted in newsletter with 900 subscribers
    • Revenues are only $200/month
    • Unique professional desgin

    Like any seller, he is talking up the potential revenue. Having been a reader of the site for some time, I was actually surprised revenues were so poor. I am sure there is some room for improvement in this area, but also believe if it were easily improved the current owner would have already done it. Monetization by current owner is advertising and affiliate sale (I suspect the $200 is mostly ad revenue, but he hasn't clarified this).

    He is asking $7,500 based on 3 years of passive revenue. I feel it is too high, but the site is well established within the niche.

    thoughts?

  2. #2
    SitePoint Evangelist
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    $0

  3. #3
    SitePoint Zealot
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    would really have to see the site in question to give acurate information.

  4. #4
    SitePoint Member Leefuturestrader's Avatar
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    If you like and think that's good & potential site so that's a worth price

  5. #5
    SitePoint Evangelist
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    Leefuturestrader and GoodFTA, thanks for dropping by and providing all those useful links.

  6. #6
    SitePoint Member
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    I figured it would be difficult to get input without providing thew site. Oh well. As much as I am a fan of the site and would like to own it, I don't think I can justify the asking price.

  7. #7
    Non-Member nupsout's Avatar
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    the pagerank of the site is well good but i dont think alexa rank is upto the point.

    i don't know to put a value for your site

  8. #8
    SitePoint Member
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    If you only make $200 a month, you have to step into the shoes of the buyer and think how the buyer is going to make money to break it even. Plus maintaining the site for the new over can be a big expense. If you can't convince yourself that you can make money off the site, then you will have a hard time selling it.

  9. #9
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    sounds like a bunch of busy work for not a lot of revenue

  10. #10
    SitePoint Member chw's Avatar
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    I have seen this type of valuation else where, where the seller is asking for three years income.

    The questions you should ask yourself is:
    Can I make back that money in say 1-2 years max?
    How much can I increase the income of the site?

    If you can honestly answer these questions then I would say the price is reasonable becuase whether you buy it or not he will make that $7,200.

    It's not only what he is asking but the difference between what he is asking and what you can make from it.

  11. #11
    winter is around the corner Tomer's Avatar
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    Sounds like a stable site, very rare to see these for sale nowadays. I always try to jump on the chance to own more.

    Probably around $3,000 at the best, assuming 3 years of past revenue.

    Shoot me a PM if it's actually for sale

    - Tom

  12. #12
    SitePoint Member
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    If your revenue is steady and coming from right source then its valuable but you have very low alexa means low traffic

  13. #13
    SitePoint Member
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    Most sites sell for between 12 to 18 months of revenue. $3600 tops unless you can figure a big upside for you. He is asking a huge premium for the site. You have to go based on the numbers. I would give him an offer of $3,000 and keep shopping around for another site. There are good deals out there. This is a buyers market.


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