Domain Manage

How do you value a site with regular income?

Discussion in 'New Domainers' started by johnnyboy, Sep 16, 2009.

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  1. johnnyboy United Kingdom

    johnnyboy Active Member

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    If a site generates a regular income of say £30, how would you calculate its selling price? I think I read somewhere that it would be 36 months X monthly income which would total £1080. Is this accurate or is there another way of valuing it?

    Thanks.
     
  2. Domain Forum

    Acorn Domains Elite Member

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  3. admin Spain

    admin Administrator Staff Member

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    Have a look at domainprices.co.uk for ideas, I need to catch up on my database updates for the last couple months. Will do that soon.
     
  4. springer United Kingdom

    springer Active Member

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  5. johnnyboy United Kingdom

    johnnyboy Active Member

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  6. FagEnd

    FagEnd Banned

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    I think the norm is becoming 12x monthly revenue. I'd hate to sell a regular income site for that, but I wouldn't mind buying.

    I was looking at flippa.com today as another member mentioned it in another post. Have you seen the crap that sells on there for hundreds/thousands of dollars? Apparently. Who is buying this stuff? It's all turnkey nonsense and most of the sites are a month old.. perhaps I'm in the wrong business. I can knock up a dozen turnkey sites a day if I was that way inclined.
     
  7. crabfoot United Kingdom

    crabfoot Active Member

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    It does depend on how long the site has been running, and what work has been done.

    The "multiple" figures quoted would be appropriate for a site that was less than a year old.

    I read a guy's blog last year - he had some sites he worked on, then neglected for about 6-9 months. Those sites were bringing in $750 a month each, with active development, but were still running at $300 a month when neglected. Obviously a multiple is not applicable in a case like that, where a couple of hours work per week and a little fresh material could double the site revenue in a couple of weeks. I have heard of people paying 5x annual income for a mature site that that "just needs a massage", when the buyer can see development potential in the site.

    It can be like "flipping" run-down buildings in the property development game.
    People have to spot the bargains and avoid the white elephants ...
     
  8. RampageJackson

    RampageJackson Active Member

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    I don't think anyone is buying them at that price. I'm not convinced its not just the seller with other accounts trying to ramp up demand and make people think its actually worth something.

    I was reading through Flippa the other day looking for sites to buy, and its woeful. They are even allowing blatant scams to be listed. Or we've got this other scam, which is also on a trademark infringing domain.

    I spent 2 hours looking through the site and didn't find a single thing even worth bidding on, or taking a second look at. I won't be going back there any time soon.
     
  9. FagEnd

    FagEnd Banned

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    I never found anything worth bidding on either. I don't want to call the site a scam, but I could not find any real prospect worth bidding on. I'm sure some people are buying there, just not for me..
     
  10. FutureDomain

    FutureDomain Active Member

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  11. jimmc United Kingdom

    jimmc Active Member

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    Flippa - flipping rubbish!!
     
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  12. RampageJackson

    RampageJackson Active Member

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    By far the best way to buy a website is to search for a keyword you are interested in on Google. Now ignore the first few pages of results, and look through positions 30-100 for sites that are clearly under-monetized or look abandoned.

    Good sites are selling for 24-36+ months profit - grab yourself an under performing site from the search results and you can be in profit within a few months.

    If a site is already page 1 when you buy it, its hard to get really good returns on it, assuming it was monetized reasonably well to begin with. Its extremely hard to get a better ROI than buying a page 4 google result site that was monetized by Adsense, then ranking it page 1 and monetizing it properly 8)
     
    Last edited: Sep 30, 2009
  13. retired_member32

    retired_member32 Retired Member

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    well said and i never agree with anyone :mad:
     
  14. FagEnd

    FagEnd Banned

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    Makes sense and worth considering.
     
  15. blossomdomains

    blossomdomains Member

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    I know many webmasters who use blackhat tricks
    to build websites and flip them for profits.

    They usually build the sites/blogs using automatic posting scripts.
    Hence, they don't have unique content.

    Some of these blogs are ranking high though on SE's...
     
  16. flamingphoenix

    flamingphoenix Member

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    I too have been looking at Flippa, some of the sites being sold are pretty unbelievable with the *promise* of earning XXX. Maybe lots of very new people are thinking that buying such a site with a OTT sales pitch will mean they can become overnight internet millionaires. I may even list one of my sites to see what happens. If I did get a silly amount, then I'll be turning out sites all day. :D
     
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