$200,000 for my website, I don't want to sell...

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POiZON

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Mar 25, 2009
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Hey all,

I am looking for some advice on what to do with my website, sell or hold onto it?

Basically I started a website about 9 months ago that is all content based that I promote an affiliate product on. I have 6 years experience in SEO and found a nitch I could easily take advantage of. To date it receives around 15,000 visitors daily and will bring in around $38,000-$50,000 in 2010.

I was approached by a monetization company the other day asking if my website was for sale. I responded with "The website is making around $40,000 a year now, so for me to sell it I wouldn't take anything less than $200,000."

I wrote that response with a kind of "piss off" mentality thinking I would not hear anything back from them. Well I did, and have a scheduled a call with the company later on this week.

I am just kind of curious as to what people on this forum would do. Hold onto a website that is averaging a net income of around $100 a day and has all the room in the world to grow. Or tie up the loose ends and take the cash.

I am conflicted. I almost think I have to come to conclusion I would only sell it for around $500,000. If the website is already making $40,000 a year now and does not grow over the next 10 years that is still a potential for $400,000 in total revenue over 10 years...

Thoughts??
 


So it's safe to say almost all of the traffic is from the engines? If so, it's kinda like an all-eggs-in-one-basket sorta deal. I would probably sell for 200 (granted that you can't squeeze more outta them), as anything over 24 months of rev is decent (with a not too old site like yours) IMO.

Would you be able to do it all over again? If so, and there's no non-compete, you could consider that as well
 
10 years on the net is like a freaking century in real time. think back to 1999. how much that was around then is still applicable in 2009? a small handful.

You have to think about how long you think you can seriously make that kind of cash on a CONSISTENT basis. things change, competition grows.
 
Yea the traffic is 90% coming from the engines. Interesting point about the non compete. I suppose I could do it all over again but don't know if I actually would. It's a tough choice. Since all the traffic is coming from the engines and I'm not even ranked for generic terms as of yet the potential is huge. I could easily see tripling my traffic within a year and a half.
 
medicalhumor said:
10 years on the net is like a freaking century in real time. think back to 1999. how much that was around then is still applicable in 2009? a small handful.

You have to think about how long you think you can seriously make that kind of cash on a CONSISTENT basis. things change, competition grows.
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I understand. The only thing I would say is there are companies that have been on the net for 8 years that are in my niche. In 9 months I have built up my website to a higher PR than them, more total links, and more quality links. There are only a select few companies in my niche that even know what SEO is. In saying that I think I have the potential to be the top dog in a few years which would give my website around 60-70,000 daily uniques.
 
nat3r said:
Whats your backup?
lets say you do sell it, do you have something to do?

i wouldn't sell it for any less than 500k personally, seems like it will never stop growing :p
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That's part of my problem, If i had a backup such as another site I was working on I think it would be easier to sell. Perhaps I should put the thinking cap on. =0)
 
$100/day is called fucking lunch money, not monetization.

If you sell it for $200-$500k you're probably being swindled. They'll flip it and start doing that monthly.

You've got 15k sets of eyeballs hitting your site every day you need to hit up some fucking networks and get paid already.
 
POiZON said:
I am conflicted. I almost think I have to come to conclusion I would only sell it for around $500,000. If the website is already making $40,000 a year now and does not grow over the next 10 years that is still a potential for $400,000 in total revenue over 10 years...

Thoughts??
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You see a website usually only sells for 3 to 6 times its monthly income, which means you'll be hard pressed to get anything more then $240,000 for it, so the price of $200,000 was good sitting at around 5 times its monthly income.

When selling my own sites, its usually pretty easy to get the 3 times its monthly income price but not so easy to get 5 or 6 times its monthly income.

In your case your actually getting more since your dealing with yearly income.

Look at it this way, do you have the time, money, will power, and ability to continue to grow the website and to take it to the next step, do you think that the niche is going to be around for years to come or could it potentially die out.

If you don't have the time, your unsure about the life-span of the niche, and no matter how you look at it, if you honestly dont think that you can take the site to the next level then sell it for the $200,000 before you loose interest and a year later the site isn't making jack shit and it aint worth jack shit.

Obviously its a choice you gotta make and the final decition is yours but always look at the risks per rewards.
 
this is definitely an interesting thing to think about. Consider Twitter. They have been offered some ridiculous numbers so far, but they are still holding on. Of course, the fear is that they won't be able to hold on to their market share and their value will go down and then they'll be f'ed.
I would say it definitely depends on the niche. How long can you really ride that wave. It is indeed a gamble not to take the money now, but it might pay off if you really think you can stay on top :)
 
This also HIGHLY depends on a) domain name, b) industry/vertical, c) technology/content.

If you have a site ranking top 3 across all engines for debt reduction with a ton of original copyrighted content and a killer domain- that's one thing.

If you have a ___acaiberry.com/org/net equivalent that's currently ranked high with content that's another. Fads end, and if the case is more similar to the acai example I'd sell that in a heartbeat.
 
yeah you should keep the site and get it to make you some real money. and make the 200k in a month or two.
 
You could bring in 100k in 2010 or you could bring in zero in 2010. You never know. That said, why sell to these guys, if they are willing to offer this money right off the bat, who else would offer more.
 
TheDean said:
$100/day is called fucking lunch money, not monetization.

If you sell it for $200-$500k you're probably being swindled. They'll flip it and start doing that monthly.

You've got 15k sets of eyeballs hitting your site every day you need to hit up some fucking networks and get paid already.
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QFT!
 
Aequitas said:
You see a website usually only sells for 3 to 6 times its monthly income, which means you'll be hard pressed to get anything more then $240,000 for it, so the price of $200,000 was good sitting at around 5 times its monthly income.
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He said it makes 40k/year not per month.

I would take the 200k and start over. If it only took you 9 months to build it, and it makes 40k/year. Even if it took you 2 years to get it back to where it is today you would still win.
 
either the people making the offer knows something you don't and can monetize the site a lot better, or they are making a stupidly high offer. a site that has only been around for 9 months typically would sell for, at most, 1 year's earnings unless there is something extremely compelling about it...
 
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