As a website broker, the question I probably get asked the most often is “what’s my site worth?”
Of course, I need a significant amount of information to determine the value of a site or sites. To do this I need a profit and loss statement for at least the last 3 years. What’s interesting is that often I can’t even get that information from a seller. I’ve had to walk away from deals because the seller just can’t deliver them to me. So, one thing to note, if you want us to help you to sell your site, I will need at least this basic information before getting started.
But in this article, I’m going to show you how to determine the value of your site yourself. Then you can decide if you want to sell it yourself, or to hire a broker like me.
First, you’re going to need a profit and loss statement. Here’s a template we give to our clients to use. Feel free to use it.
The factors that determine a site’s value are as follows:
- Are sales and profits going up or down and how much are they going up or down?
- What is the niche of the site? Some niches, like live cams and fan sites are in great demand and will get a better sales price in most cases.
- Does the operation of the site depend on you or is there a team that can carry on after you’re out of the picture? A good example of this is a site where the owner is the main talent. Obviously selling the site and walking away will bring down the value considerably.
- And finally, how quickly do you want to sell? Are there things happening in your life that make it so you must sell it fast, or can you wait the process out? This is a process, and it often doesn’t happen overnight. As I say that, I just closed a deal the day after the mail blast went out. But that’s very unusual.
Here are some examples for you to illustrate what your site might be worth:
- Example one – You own a membership site that’s growing 25% year over year the past few years. Your annual profit is trending at 100K for this year. Your site value would be between 2.5 and 3.5 times annual profits, or $250,000 to $350,000.
- Example two – You have a live cam site that makes 300,000 dollars a year and it’s growing 40% year over year. This site would be worth between 3 to 4 times annual profits, or $900,000 to 1.2 million dollars.
- Example three – You own a membership site that isn’t doing so well. Your profit is trending at 100,000 dollars this year, but sales and profits have been dropping for the last 3 years by 15 to 20 percent a year. This site would be worth 1 time to 1.5 times annual profits, or $100,000 to $150,000 dollars. And this would be a tough one to sell. I would be willing to try on your behalf, but you can’t expect any miracles in a situation like this. Your best bets are to either a) keep the site and let it die off or b) spend marketing money to build it up and then sell it later.
Of course, every situation is different. We’re always happy to give you a free broker assessment to help determine the value of your site. There’s absolutely no obligation and you can do with it what you want.
I hope this helped to clear up the question of what your site is worth.
If you have questions about anything covered in this article series, feel free to reach out to us. To contact Adult Site Broker with any questions about what you’re reading here, or about buying or selling adult sites or companies, go to our contact page.
