Value based on revenue

[WG2010]

What price would you give to a site (not exact match) with the following rankings, traffic and revenue.

Revenue - $200-$250 per month in Adsense plus 1-2 sales of a service priced at $197 (all profit). On average, it earns $400-$500 per month.

Traffic - Holding steady between 3500-4000 visits per month for the past 6 months.

Rankings

#1 - 3 keywords (2 words in length)
#3 - 1 keyword (2 words in length)
#4 - 1 keyword (2 words in length)
#6 - 1 keyword (2 words in length)
#9 - 1 keyword (2 words in length)

Website has sitelinks and is about 15 months old.

 

[DavidL]

I guess it depends how the rankings have been achieved and the niche (whether it's growing, dying or stable). But if we assume it's stable...

If no SEO has been done and it ranks that well then you'd say 5-10 years revenue
If really aggressive/risky SEO then maybe 1-2 year's revenue?

Could be way out here though. I'm not an expert in valuing established sites.

If you're selling PM me details

 

[zhenjie]

5-10 years revenue is a bit much for an evaluation for an Adsense site. A potential buyer wouldn't be able to get their money back anytime soon even with a renewed SEO effort.

If you take the data on Flippa, stable ranking sites would typically get 12-24month of their monthly revenue. Sites that are still ranking and made primarily for 'flipping' are attacking 6-12months revenue for their prices.

 

[DavidL]

Zhenjie, yes I think you're right. I may have overvalued it there.

I guess the other way to look at it is as a 'general' investor.

He puts $30K in the bank and earns 6% = $1,800 p.a. No risk

He puts $30K in the stockmarket and earns 10% = $4,500p.a. Some risk

He puts $30K into a website like above (based on 5x earnings) and earns $6,000p.a. Some risk

6 months revenue sounds too good to be true? Are there a lot of scams & inflated figures with these sites?

 

[WG2010]

Zhenjie, yes I think you're right. I may have overvalued it there.

6 months revenue sounds too good to be true? Are there a lot of scams & inflated figures with these sites?

IMO, 95% of the sites sold on Flippa are shit and are sold on the idea of potential income/revenue instead of hard facts yet people are falling over themselves to purchase them. Shaun would vouch for me though that this isn't one of those sites.

Websites go for inflated prices on Flippa which is why I'll probably sell the site on there at the end of January (traffic peaks in January). My website not only has genuine income but has a lot of potential for someone willing to do more work on it.

It was almost sold it to someone in the relevant industry a few months back for $35,000 (obviously a domainer or IM'er is not going to pay this amount) but it fell through unfortunately. The business stood to make significant revenue from all the traffic as they had businesses located in each city where the majority of the traffic comes from.

Their SEO guy who handles their Adwords campaign talked the owner out of it! It would've eaten into his bottom line which is why I believe he did what's best for him instead of the business itself.

 

[DavidL]

PM me details - I'm intrigued!

 

[coreyg]

what niche and TLD?

Cheers
Corey