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What is my web service worth when sold ? (15-18k income/month)

Discussion in 'General Business' started by HolidayMadness, Jul 10, 2013.

  1. #1
    I operate a web service through an offshore US registered LLC.

    I consider to sell the web service including all proprietary software (serverside, clientside, PHP front and backends)
    I'm really new to that topic and wonder what price it might be worth.

    I don't want to give too many details, some people from here are likely customers and I don't want to cause any trouble or ill thoughts.


    Monthly income (aproximated from PayPal, might be off by 500-1000):
    2011 August: 13000 USD

    2012 January: 14000 USD

    2013 March: 17000 USD
    2013 April: 18000 USD
    2013 May: 17000 USD
    2013 June: 17000 USD
    Expenses: 500-1000 USD/month
    Required technical maintenance: ~50 hours a year
    Side income: Regularly customers ask for development help and are willed to pay good rates.

    My LLC also owns 8200 US IPs which are required to operate the (mostly rented) servers, websites, proprietary software (customer access points), etc..
    According to forbes the conservative worth of the IP space is 20USD/IP (162,000 USD)
    Over the next years IP space will become very rare, the price/IP might multiply over the next years.
    My business could be operated without the own IP network but I'd not recommend it.

    There has been good income growth (30% in the past 2 years) so far and there is no indication this is not going to continue.
    My marketing effort is very low, by marketing more aggressively and investing into SEO the growth can likely be increased a lot. (This is what I'll do if I don't sell)

    My customers are mixed private and companies, one customer is even one of the worldwide most known companies (through a sub contractor). Many SEO companies and freelancers are subscribers as well.
    I provide high quality service, high priced and aimed at professionals.
    Competition mostly offers low quality service at a low price, some of my service core features are not matched by anyone else.

    I hope I don't ask too much, maybe someone here is experienced and can give me an idea what my company is worth.
     
    HolidayMadness, Jul 10, 2013 IP
  2. WebDeveloperSahil

    WebDeveloperSahil Active Member

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    #2
    You can make it from $1,00,000 to $5,00,000. As lots of people will get intrested because they'll think this is only one time investment. They'll overcome this payment in only 1 year. And then profits and profits. By the way, why you want to sell this? You are getting a huge amount from it
     
    WebDeveloperSahil, Jul 10, 2013 IP
  3. HolidayMadness

    HolidayMadness Peon

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    #3
    Just considered it, depends on what I really can get for it.
    I have a hard time judging, the IP space alone is worth quite a bit.
     
    HolidayMadness, Jul 10, 2013 IP
  4. wzn888

    wzn888 Member

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    #4
    you can think about to set the reserve price for around 2-year profit totally,just go to flippa to list it and see what offer you can get,hope this helps
     
    wzn888, Jul 12, 2013 IP
  5. webar2007

    webar2007 Well-Known Member

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    #5
    Let the market decide the price. List it here at DP or Flippa and see what potensial buyers say.
     
    webar2007, Jul 13, 2013 IP
  6. matt_62

    matt_62 Prominent Member

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    #6
    this is the minimum starting bid:
    0.5 * (yearly income - yearly expenses) = starting bid

    Something like this though, I would expect it to be sold for between 1-2 years profit.
     
    matt_62, Jul 13, 2013 IP