How Much Would You Pay For A Website? | Bloggers Lair | Yakezie Forums

jaicatalano said:

I really could use some help. I am interested in a niche photography blog/website that is 2 years 

and has a lot of potential for financial growth… Here are some facts. How much would you pay? 

• Profit/earnings have tripled in 1 year (Averaging 1300+ month)  April profit $1376, May profit $1521.94. 
• Traffic has gone from 28K uniques per month to 67K uniques per month (May 2012) 
• Pagerank from 1 to Pagerank 3
• Facebook Fans: from 4200 to 9300 
• New sources of income (Affiliate, Amazon Associates and drop-shipped products)

How much would you pay?

How much I would pay is a loaded question!

First you need to know how you plan to monetize, passively or aggressively?  Do you want it ot come from adsense, private advertising, or product sales? How much from each source? How much time and money do you need to contribute regularly? 

I primarily profit from direct advertising…so if I cant recoup investment within 3 months, I dont want it.  Ive bought 3 sites using the methodology.  However, I might go out as far as a 9 – 12 months if adsense and/or product income was a factor….just depends on what product it is.

I would likely discount the last few months since it's grown so fast, it could fall just as fast.  I'd probably go 9-12 months but throwing away the last three months.  If that makes sense.

Recent spike in uniques could be gamed..buyer beware. 

MoneyBeagle said:

I would likely discount the last few months since it's grown so fast, it could fall just as fast.  I'd probably go 9-12 months but throwing away the last three months.  If that makes sense.

Yes that makes sense and you are right. Who is to say life will be the same a year from now. 

ontargetcoach said:

Recent spike in uniques could be gamed..buyer beware. 

Not to sound naive but they are a baby photography site that isn't out to scam. You thoughts are well understood but everyone and their mother who is a photographer in that niche wants to be featured on their site because they keep growing. But it is in my thoughts and I appreciate your input. 

Thanks. 

Thank you for all of your input. You all gave me thoughtful advise. In addition, Corey at 20sfinances gave me great advise (off forum) that has changed my thinking and decision making.

I will announce the direction I am going in soon.

Thanks once again.  

I would now consider this topic closed. 

Hey Jai, hopefully I get under the "closed" wire here, I would do 4K in a heartbeat if I felt I really understood the site, and its business model.  I would even do 6K without thinking too much about it as long as I felt I knew how to continue making money on it.  Anything beyond that I would have to compare potential vs the worst cast scenario of there being a recent spike skewing that valuation data.

It wasn't a perfect fit for me. It was more of a softer toned website that isn't me. I mean I cried at King Kong but that is as far as it goes. I didn't think the site was going to be GREAT for me. Great but not for me. As for why they are selling… they said they have another business that is doing well and they are building capital. They want 16k as a reserve. It's at 6k with 3 weeks left. Their BIN price is a HUGE 31k. Not worth it but more than that it isn't my complete speed.