How much is my website worth?


#1

Hello Guys!

I just wondering how much will my website sell for? The website has been live for over 4 years, it is PR3 it has over 280000+ backlinks. Daily traffic is around 14000 visitors a day, revenue around $150,000 per Year.

I have contacted a website broker and he told me they can sell the business for $350,000

What do you think about this offer?


#2

Welcome to the forums, @dimaaliev9.

I presume you're referring to the home page, as each page is ranked separately. How have you established that figure? To the best of my knowledge, Google ceased to issue public updates several years ago.


#3

General concensus always used to be one years income as a guide price. If someone can get you more then go for it :slight_smile:


#4

Revenue $150k, how about profit margin?
I've heard figures as high as 10x the profit is acceptable.
3x to 5x revenue ain't bad either.
I wouldn't buy that business for a hundred bucks if revenue was $150k but made $5000 a year profit for example.

The broker, I assume, will take a cut? Will the new owner make payments? Profit share? Lump sum?

Maybe if you sold for 200k and maintain 5% of the profits or something. Ongoing residual income is always nice!

The point is you can sell it for lower if it's in your best interest to get a better payout, maintain percent ownership etc. But if the buyer wants to make payments for 20 years, you should charge much more because that's annoying.

For a lump sum payment, 2x or 3x the revenue is good, or 10x the profit, however you want to slice it, depending on the margins. If you're 90% profit then the 10x probably won't work, but any business with 90% profit is worth a lot. If I buy your business for $200k but I'm automatically making something like $130k a year in profit, the obviously I've got less than two years to pay off the investment, I mean that ain't bad! So charge more! But if the profit is like $20k a year, it would take me forever to pay back a $300k purchase of the business, not worth it to me at all.


closed #5

This topic was automatically closed 91 days after the last reply. New replies are no longer allowed.