Post: #1

How to correctly evaluate the value of one website?

I read that the correct value of one website,
when you buy it, is equal the monthly net profits multiplied by 5.

I wish there would be an accurate
online tool which can quickly evaluate the value of one website.


I found one tool though which seem to be very good:

http://www.worthofweb.com/website-value/...kings.com/

How much is returnofkings.com worth?

Website Value: Estimated Worth:

$ 766,697


How much is rooshvforum.com worth?

Website Value: Estimated Worth:

$ 625,047

What are your thoughts?

Post: #2

Anyone using flippa here ? I use it everyday

Post: #3

I have looked into buying an online businesses but many say it is easy to get scammed. There are a few threads floating around on the forum.

Post: #4

Interesting thread idea. I'm no website expert but I'm in commercial real estate and we also look at a 2-3 year history so I would recommend looking at historical income history of the specific website and try to find trends.

Post: #5

The correct value of a website is its real value to you.

Based on the profit you'll earn from operating the website over a given time period (the estimated period that you expect the website to be relevant and continue to turn predictable profits), how much can you afford to pay, before that same amount of money would earn you more profit invested elsewhere?

That's the maximum you should invest into anything.

Now try to negotiate as far down below that number as possible, so that you can keep as much of your cash in your pocket as possible.

Post: #6

Money making sites typically list for 20 times monthly earnings. Can be higher or lower depending on the revenue quality and traffic.

Like a Google adsense site might be super lucrative, mesothelioma cancer, and for more, because a plaintiff's attorney can generate good cases from site. What's 30k when one client can be worth a few hundred thousand.

WIA

Post: #7

(06-27-2015 11:40 AM)germany Wrote:  How to correctly evaluate the value of one website?

I read that the correct value of one website,
when you buy it, is equal the monthly net profits multiplied by 5.

I wish there would be an accurate
online tool which can quickly evaluate the value of one website.


I found one tool though which seem to be very good:

http://www.worthofweb.com/website-value/...kings.com/

How much is returnofkings.com worth?

Website Value: Estimated Worth:

$ 766,697


How much is rooshvforum.com worth?

Website Value: Estimated Worth:

$ 625,047

What are your thoughts?

No. The 5 isn't a hard rule.

over simplified explanation:

General rule of thumb is that you get that number by looking at previous sales for similar businesses(websites). You then breakdown the financial data to compare how much was paid for the businesses relative to the total share value, earnings before non-operating expenses(interest, Tax, and Depreciation/Amortization).

Averaging those values will give you what's called a "comparables multiple". For example let's assume that for five similar sales the purchaser paid 2x, 3x, 5x, 6x, and 7x the website's net income before taxes and interest. This gives you an average multiple of 4.6x that net income.

If you've been clearing $10,000 annually before net income that means you should expect an offering in the ballpark of $46,000.


That's just a ballpark. Obviously the exact amount you get can vary greatly depending on how the acquirer views any unique strengths or weaknesses that your website/business has.

Post: #8

HA my website came up with an error saying I need more traffic. I only been open around 2 months and average around 200 hits week... Looks like I got work to do.

Post: #9

(06-27-2015 11:40 AM)germany Wrote:  How to correctly evaluate the value of one website?

I read that the correct value of one website,
when you buy it, is equal the monthly net profits multiplied by 5.

I wish there would be an accurate
online tool which can quickly evaluate the value of one website.


I found one tool though which seem to be very good:

http://www.worthofweb.com/website-value/...kings.com/

How much is returnofkings.com worth?

Website Value: Estimated Worth:

$ 766,697


How much is rooshvforum.com worth?

Website Value: Estimated Worth:

$ 625,047

What are your thoughts?

I really don't trust these online website valuation sites. There's a site I want to buy that it values at several thousand dollars, but it is currently a personal site with no advertising and isn't a unique, or at least not a valuable, name at all. Not making any money at all for the current owner. Unlikely to get much traffic. NOt the kind of name that would appear often in websearches.

Post: #10

All of the automated valuation tools are total BS, no one uses them to get a realistic price of a website so don't bother with them.

The valuation of a site is largely subjective and depends on a number of things including the revenue sources, history, age, credibility and future monetization options of the site (if any). From my experience (10 years in gambling affiliate marketing) in the current market you'll get 12-18 months revenue plus some concessions for quality content, back links, etc.

Websites listed on Flippa typically have astronomically inflated asking prices that are sometimes 4-5 years of revenue, which personally I would never pay. I find a lot of the websites on Flippa are garbage, but ever once in a while there are some gems on the site. Probably the best type of site you can get is a long established property that has adsense revenue which is proven and consistent over 12-24 months. These are super hard to find and I've only seen a handful in the last few years.

Post: #11

(06-30-2015 10:21 AM)Bad Hussar Wrote:  

(06-27-2015 11:40 AM)germany Wrote:  How to correctly evaluate the value of one website?

I read that the correct value of one website,
when you buy it, is equal the monthly net profits multiplied by 5.

I wish there would be an accurate
online tool which can quickly evaluate the value of one website.


I found one tool though which seem to be very good:

http://www.worthofweb.com/website-value/...kings.com/

How much is returnofkings.com worth?

Website Value: Estimated Worth:

$ 766,697


How much is rooshvforum.com worth?

Website Value: Estimated Worth:

$ 625,047

What are your thoughts?

I really don't trust these online website valuation sites. There's a site I want to buy that it values at several thousand dollars, but it is currently a personal site with no advertising and isn't a unique, or at least not a valuable, name at all. Not making any money at all for the current owner. Unlikely to get much traffic. NOt the kind of name that would appear often in websearches.

Why do you want to pay several thousands dollars for a website that makes no money?

There are so many options to buy for maximum $ 100 websites
that make no money, and they can tailored exactly to what you need it for

Post: #12

(07-02-2015 02:43 PM)germany Wrote:  

(06-30-2015 10:21 AM)Bad Hussar Wrote:  

(06-27-2015 11:40 AM)germany Wrote:  How to correctly evaluate the value of one website?

I read that the correct value of one website,
when you buy it, is equal the monthly net profits multiplied by 5.

I wish there would be an accurate
online tool which can quickly evaluate the value of one website.


I found one tool though which seem to be very good:

http://www.worthofweb.com/website-value/...kings.com/

How much is returnofkings.com worth?

Website Value: Estimated Worth:

$ 766,697


How much is rooshvforum.com worth?

Website Value: Estimated Worth:

$ 625,047

What are your thoughts?

I really don't trust these online website valuation sites. There's a site I want to buy that it values at several thousand dollars, but it is currently a personal site with no advertising and isn't a unique, or at least not a valuable, name at all. Not making any money at all for the current owner. Unlikely to get much traffic. NOt the kind of name that would appear often in websearches.

Why do you want to pay several thousands dollars for a website that makes no money?

There are so many options to buy for maximum $ 100 websites
that make no money, and they can tailored exactly to what you need it for

Oh, I'm definitely not spending $1000's to buy it. Will wait till it comes up for renewal. Maybe the owner will forget. Then I'll buy it. Or just offer $100 and see what happens, Just commenting that certain valuation websites value it at this much. Which I think is obviously ridiculous.

Post: #13

It's like valuing any business -- more art than science unfortunately. At a basic level, the value to someone considering purchasing a business is the net present value of the future cash flow streams that the business is expected to generate, including, if appropriate, a terminal value of any assets (probably nil in the case of a web site) that he can sell at the end. A rough starting point is something like 10x the annual cash flow, or 1x the annual revenue (assuming a 10% profit margin, which is a very basic benchmark across a variety of mature industries, obviously variable by industry). How much would you be willing to pay today for an income stream of $1 per year in perpetuity? $10-$15 is a decent starting point.

Of course, major considerations are how variable or risky the prospective cash flows are, the discount rate to use in valuing future cash flows (which depends on the opportunity cost, i.e., other potential uses for your capital), and how you as the owner of the business could improve the profitability compared to the current owner, maybe because you know the market better or you can achieve an economy of scale or synergy with some other activity you manage.

Most acquisitions go for a premium over their current book value -- though in fact most acquisitions fail to live up to their promise and most of the surplus value ends up in the pocket of the seller.

Post: #14

Total bullshit.

I've sold a handful of sites. The most I ever sold one for was $5,000, so I've got some experience, but I'm not an expert by any means.

The price all depends on the type of business/website it is. Bullshit adsense sites are worth way less because they are usually thin on content and often get knocked out of the rankings.

A legitimate e-commerce business is worth way more than 5x monthly profits.

A lot of blogs can be worth 10x+ their monthly profit, depending on how established they are and how likely they are to stick around. I.E. ArtOfManliness is a blog, but it's an established brand and legitimate business so it is worth far more than many other blogs.

The $5k site I sold was an affiliate blog, but not nearly as established as something like ArtOfManliness. However, because it was about physical products that were for sale, I sold it to a retailer for a much higher price than I would have gotten from an affiliate marketer because to an affiliate marketer it was only worth 10-20% of the monthly sales (my commission), but to a retailer it was worth a lot more because it had been responsible for $60,000 in sales the past year.

As someone said above, it's an art, not a science. You can't just plug a URL into some website and expect the number that pops up to be anywhere near correct, and probably not even in the right ballpark. For ROK to be worth over 3/4 of a million dollars it would have to have some serious earnings, or future earning potential. Even if it profited $100,000 per year, which I HIGHLY doubt, it would take you nearly 8 years to get your investment back at that price. I know Roosh isn't a sellout, but I bet a $775k check would make him at least think about it. If it were mine, I'd sell that shit in a heartbeat lol.

Post: #15

(07-02-2015 10:55 PM)RioNomad Wrote:  I know Roosh isn't a sellout, but I bet a $775k check would make him at least think about it. If it were mine, I'd sell that shit in a heartbeat lol.

According to worthofweb, these are the current values:

How much is returnofkings.com worth? $ 766,697

How much is rooshvforum.com worth? $ 625,047

ROK gets 1.9 Million visits per month, the average visit lasts for 4:50 minutes,
and 62 % of visitors are from United States.

This means about 22.8 Million visits per year.

In terms of PPC (price per click/visit) , a correct decent valuation
of 1 click/visit is about 0.10 $

By this valuation, ROK is worth 2.28 Million $ per year,
so way much more than the $ 766 K automated valuation

Post: #16

Are you telling me you think ROK makes $2.28 million per year?

Post: #17

That is one way to valuate it.

ROK is a website with 22.8 Million visits per year, more than 62% of them being from United States.

Post: #18

(07-03-2015 09:20 AM)germany Wrote:  

(07-02-2015 10:55 PM)RioNomad Wrote:  I know Roosh isn't a sellout, but I bet a $775k check would make him at least think about it. If it were mine, I'd sell that shit in a heartbeat lol.

According to worthofweb, these are the current values:

How much is returnofkings.com worth? $ 766,697

How much is rooshvforum.com worth? $ 625,047

ROK gets 1.9 Million visits per month, the average visit lasts for 4:50 minutes,
and 62 % of visitors are from United States.

This means about 22.8 Million visits per year.

In terms of PPC (price per click/visit) , a correct decent valuation
of 1 click/visit is about 0.10 $

By this valuation, ROK is worth 2.28 Million $ per year,
so way much more than the $ 766 K automated valuation

You made a massive mistake here: 1 click/visit is about 0.10 $

It is unlikely that roosh gets more than 1 clicks per 100 visits. That's about what Facebook gets and they have tons of expensive analytics guys working on maximizing that number.

On the other hand .1 CPC is too pessimistic. .25 is probably more realistic.

So ROK does not make more than 22.8e6 *.25/100 = 57k on advertising. That means ROK's selling price would be about 100k.