ROI/valuation of web site
I have a friend who has an unmaintained little web site, he's not interested in working on it any more. The site generates some income from google ads.
I have some ideas for the web site and I can work on it to increment traffic etc, so I'm interested in buying the site from him.
This is a simple valuation question; if the site is generating, say, $1,000 a year in revenues, what would be a typical price for it?
I know it depends on publicity projections etc, but to simplify let's say it's going to keep like now for a few years. The domain name alone is pretty good too, but let's also disregard it for the moment.
I have an estimate in mind but I wanted to get some ballparks from other opinions.
2 comments
[ 3.6 ms ] story [ 16.2 ms ] threadNormally, I suppose you could use the 3X annual revenue formula as a start, but in this case, your friend admits he isn't interested in developing it out anymore.
Why not low ball an offer of $500 to start the negotiations, or ask him what he thinks the whole thing is worth?
Your high number could be $3000 or more, but this way you might end up paying less.