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What is minimum revenue/ profit/ number of users for a social site to be worth $1M?

Discussion in 'General Business' started by tradester, Jul 7, 2011.

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  1. #1
    So we read about big social sites worth billions like facebook ($70Billion), Groupon ($20B), Zynga ($10-20B) etc.
    Obvious those are big sites with hundred of millions of users so bigger multiples are used in their valuations- like they have revenues of $2B which means the revenue multiple is about 35 times which is extremely high.
    On other hand, if it is small site with revenue of few thousand, the going rate is probably maximum 2 times of revenue (i.e. maximum 24 mths revenue).
    Maybe someone who is familiar with buying and selling of sites can elaborate more on valuation multiples used for small sites.
    So what type of numbers i.e. minimum revenue/ profit/ number of users is required for a small social site to be worth $1M? :)
     
    tradester, Jul 7, 2011 IP