Sold a site for $100K+ ?

I'm interested in the valuation of a family of ecommerce sites (home electronics market) that net me an average of $5920/mo in affiliate commissions, steadily since 2006.

How do I calculate current sales value?

 

First of all, if this is not a sales thread then it shouldn't be placed here in BST.

Secondly, a value or selling price of a website depends upon several factors. Revenue is offcourse important, but other are several other factors like
1) Time and Effort required to maintain the site.
2) Promotion methods used for the sites.
3) Net profit value (not gross revenue).
4) Site content, domain value etc.
5) Sources of traffic

So its really difficult to estimate a value for the site without knowing ,much data.
But if other factors are good, you can easily sell the site for 12x- 18x the monthly profit.

 

I dont know how much work is involved but why sell a site profiting $6k/mo steadily for almost 5 years? Most people can live off of that, and you wouldn't have to ever worry. If this is the case, you've made close to $350k, why sell for 100k?

In other words, it does depend on MANY factors, but the general rule of thumb is net x 10 months. which in your case would equal around $59,000. But if there isn't much work involved, and it's been steady as you say, you might be able to get 12 - 15 months income.

IMO, I'd keep it.

 

I am interested in the sites. If you can provide more info, that would be helpful.

 

if you really wanna sell or whatever i suggest you to go flippa , you easily find some crazy buyers over there.

 

Thanks. I spoke with a good broker over there last year. He thought my site might bring $150k.

But we're drastically increasing sales this summer, so I'll wait to see where we level off.

 

Not sure why you would even want to sell. I wish my sites generated that much income ...or half.

 

We've had some very positive developments in the past month, so we probably won't sell until those things take shape.

But selling for 2x yearly net gives real security that you don't get by hanging your hat on Google's whims.

 

I see a lot of people in this thread wondering why anyone would sell a domain that's earning that kind of revenue, that was my initial reaction as well, but based on your last comment you raise a good point and in some cases it's all about timing and with so much competition you just never know for how long a certain site will make $$ for, depending on many factors of course, but still, sometimes it's wise to sell while a site is hot too I suppose even if it is making you some descent cash

 

I doubt you'll get more than a year earnings. May be $60K?

 

Wow thanks for that expert opinion

 

Bingo.

Buy low... sell high.

Only a fool believes that Google or Enron will keep to the same rules forever.