20i Reseller Hosting

Valuing a website...

Discussion in 'General Board' started by twostepsbehind, Aug 1, 2019.

  1. twostepsbehind Bulgaria

    twostepsbehind Active Member Acorn Supporter

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    Hi,

    I've had my eye on a website for a while and the owner got back in touch recently.

    How much should I offer roughly?

    3 x yearly earnings + goodwill for the domain seo value + goodwill for email subs list ?

    Or is there a better equation?

    Ta
     
  2. Domain Forum

    Acorn Domains Elite Member

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    articles.co.uk
     
  3. dazc United Kingdom

    dazc Active Member

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    One year's earnings plus a premium for how much you really want it. A website's revenue can fall dramatically at any given moment so to value beyond what you can earn from it in a year is a very risky strategy.
     
  4. Adam H

    Adam H Well-Known Member Exclusive Member

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    Impossible question without knowing the type, quality, revenue, traffic and domain. 3x year earnings on a site earning a tenner a month from amazon associates, or 3x times earning from a ecommerce store that's consistantly generating sales without marketing for 3+ years. Big differences on the type of revenue, how its generated and likewise traffic and SEO value.

    I always offer what i consider to be a value I'm prepared to lose. More often than not much much lower than any kind of multiple.
     
  5. twostepsbehind Bulgaria

    twostepsbehind Active Member Acorn Supporter

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    So, these are the stats I've been given:
    £60 a month in AdSense
    10k pageviews a month
    35k active subs for their newsletter - what I'm after

    SEO - it's page1/2 for it's most common search terms - against some other SMEs that are the top players in this niche

    I offered £2k - I thought this was way overpricing, but I want it - he's saying £5k...
     
  6. Adam H

    Adam H Well-Known Member Exclusive Member

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    Are the subs post GDPR or requalified since GDPR? have they been revalidated recently ? Personally I wouldnt have offered half what you have unless the site revolves around a high ticket item and the expense could be retreived fairly quickly with those SEO stats and email list.

    That said, if its a niche you are in or want a head start in and you know it will benefit you, then offer what you consider it still being a benefit.
     
  7. twostepsbehind Bulgaria

    twostepsbehind Active Member Acorn Supporter

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    The plan is to rebrand on a new domain and forward this domain - £2k is highest I'm willing to go - so I guess I'll have to move on now...
     
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  8. RobM

    RobM Retired Member

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    If it is constant established traffic I would value it, based on those figures, at £2500. Especially if I intended to earn more than the paltry adsense model from the traffic.
     
  9. Trauiner United Kingdom

    Trauiner Active Member

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    Your biggest reason for buying the site seems to be the active newsletters. Just make sure you discuss the GDPR situation regarding them.

    Have the subscribers agreed that they're details can be sold on, and each subscriber has time-stamped information linked to them of when they signed-up and agreed? because if they haven't, you can't use them.

    If they haven't and he wants to transfer them, he will need to notify them and get them re-validated, which with most email lists ends up with a MUCH lower subscriber count.
     
  10. twostepsbehind Bulgaria

    twostepsbehind Active Member Acorn Supporter

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    On further inspection of the email sub form on their website, it isn't GDPR compliant

    Plus, he asking for double what I'm offering - so that's then - I guess I can invest that money in SEO/PPC to build my own list hopefully
     
  11. Robert Smith United Kingdom

    Robert Smith Active Member Exclusive Member

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    You cant build that for £2k.

    What are the SEO metrics (majestic - trust & citation)
    How many pages are indexed in google?
    How many pages are indexed in Bing?
    What vertical is it in?
    What is the domain (.com or .co.uk)
    What year was the domain registered in?
    Has the domain been dropped at any point?
    Have you been through the wayback machine?
    Where is the email database held? Mailchimp? Sendgrid? some self hosted thing?
    Do they have a work flow for email automation?
    How many w3c errors on the homepage?
    Is it responsive?
    What are the page speed metrics?
    Does it make any money each month?
    What are the running costs?