Hello all I'm trying to aqcuire my first website to sell affiliate merchandise through. This website I am wanting to acquire has 40-50k unique visitors per month and about 200k hits per month. It is ranked #2 for the keyword I want and #1 for the other keyword that I want. What should I offer for such a site? What kind of value could I get out of 40-50k visitors if the site is a bunch of articles but I be an affiliate selling things ~200$ which I would get 5-10% of?
Value of this website?
- Thread starter ralphlauren55
- Start date
1% conversions (500) * payout (10) * 10 months = $50k ... or you can take clicks (50k) * CPC and look at the value of the traffic.
After figuring which model above to use, start negotiations way below that.
After figuring which model above to use, start negotiations way below that.
Yeah should be worth around 50k+. I would start at around $25k and move up from there. Websites are hard to give an exact price on though since the domain itself could be worth more and other small factors could raise or decrease the price.
what if they do not currently have anything monetizing the site besides adsense? I think they are only netting like 4$ a day off of adsense. I was thinking of offering more like 3.5k since thats about 2 years of revenue plus extra because they know it can be monetized well. I asked them what they think the site is worth so lets hope they say something wayyyy less than $50k:338:
Be careful, if theyre only making $4/day from Adsense, something is wrong with the stats or the traffic.
Do they have Google Analytics installed, and have they given you a log-in so you can see the stats yourself? If they aren't willing to do that, something is funny with the numbers and you should probably walk away.
As far as the valuations you're hearing in this thread, ignore them. Without knowing the niche, domain age, domain value, backlink profile, etc. nobody can give you a good valuation. 12x revenue means nothing when it's not being monetized properly. Get a look at the stats through GA and take it from there. If you need a real valuation, let me know. I'm not an expert, but I'll do a lot better than tell you 12x revenue.
As far as the valuations you're hearing in this thread, ignore them. Without knowing the niche, domain age, domain value, backlink profile, etc. nobody can give you a good valuation. 12x revenue means nothing when it's not being monetized properly. Get a look at the stats through GA and take it from there. If you need a real valuation, let me know. I'm not an expert, but I'll do a lot better than tell you 12x revenue.
I agree with this, even my evaluation is way oversimplified. Too much goes into buying a domain than can be included in a 2 sentence post.
You obviously are posting this as a seller and not a buyer. The 12x valuation is for the seller, not to the buyer. The OP wanted a valuation so he can approach the seller with a price. Obviously the OP is valuing the website more than the current owner and believes the website is under monetized. He is not going to offer a price that he is valuing the website at.
I'm a buyer and a seller and I can tell you that using a set multiple to value a site with none of the other information I stated above is pointless and inaccurate, whichever side of the transaction you are on. This isn't arcades, proxies and recipe sites we're talking about...there are too many variables that he has not provided and therefore he will not be able to get an accurate valuation.
What is the longevity of their business model? If its something that you think will keep up within the next 2-3 years, then the value is prob about 1 years revenue. If it is kinda sketchy go with 1/2 years revenue. Check out sitepoints marketplace youll find all sorts of valuation tactics ect. Feel free to PM/IM me with the site info if you want a more personal opinion.
they have been getting an average of 40k hits a month for 20 months so far. the site has nothing on it really except for about 100 articles and 2 adsense ads. honestly I could make the site in about a week if they don't sell it to me. the number of visitors viewing data that I'm looking at is from an extreme tracking link they have on their page so its legit. if I use the same idea and advertise it hardcore, how hard do you think it would be to take most of their traffic and their #3 spot for the keyword behind urban dictionary and wikipedia?
It is always hard to get an accurate valuation. Take arcades for example. Having 10k+ visitor/day makes it worth almost 2 - 3 times because Tribal Fusion only accept arcade sites with 10k+ visitor. Anyway, no point arguing because I am not here to tell him to buy it or not.
He wanted to buy a website and the suggestion is offer the seller 12x monthly revenue because that is the absolute minimum in most cases. Then he can wait for the seller's response and proceed from there.
Here's a better idea for your FIRST affiliate site: build it yourself! If you do acquire this site how will you even know what to do with it? People selling websites typically aren't turning over their golden goose, or else they wouldn't be selling it. Either they are way overestimating how much it is worth, or it used to make money and now it doesn't anymore. You would be much better off to do some niche research, pick a niche (even if it's the same one), and build your own site. The knowledge alone will be worth way more than this site that you want to buy.
40k hits per month could mean anything. Maybe they're running bot traffic or PPV at it just to inflate the numbers. Have you looked at referral data and bounce rates, etc?
If you want to know how long it would take you to take over their #3 spot - here's an easy rule of thumb: Between 1 day and forever, depending on niche and level of competition.
yeah they want 6,000$ for it. I think I will just make my own website doing the same thing they do, with a similarly named site and take them over in like a few months, that way I will learn how to do it and save lots of cash.
I've bought and sold websites before. Ones that are getting revenue I generally won't sell for less than 10x their monthly revenue unless it's premium. But 10 months is a good starting point, at least.