How to Sell An Established Website: Determining The Price
How to Price Your Established Website For Sale
Don’t price in your work and time into the sale. This should be reflected in the websites earnings and traffic already. If you spent 50 hours building a custom website then mention that but do not expect the buyer to pay $x per hour for the time it took you. Obviously having a unique site is great and will add value but the majority of buyers will be stuck on “how much the website makes” and that is all they care about.
Looking over the websites that actually sell in the marketplaces I noticed that they end up with a price of around this formula. Of course I suggest using common sense and pricing the website at around 12x the monthly revenue like everyone else but this formula can give you something to think about.
Formula: Monthly Revenue x Amount of months site has made that revenue
Example: I own a website that has made $500 for the past 18 months on autopilot. I should be looking to sell it for around $8000-9000 based on my formula.
Below are examples of the prices of a couple of websites that sold in the various marketplaces. I was very suprised at how many no revenue sites that sell purely based on their design, support of the seller, and potential. About 75% of the sites that were selling were less than $250 and had no revenue (can be considered startup sites). It looks like there is a market for those at or around the $200 price range.
Niche Sites
$600 sold for $3000 (5 months)
$850 sold for $11000 (13 months)
$1500 for $14495 (10 months)
Arcade Site
$330 monthly for $3300 (10 months)
$30 monthly for $5400 (13 months)
$15 monthly for $227
Affiliate Product
$67 monthly for $1400 (21 months)
$15 monthly for $227 (15 months)
New no revenue for $97, $147, $297 (Niche sites selling clickbank products)
Blogging
$650 monthly for $60,000 (92 months)
$335 monthly for $4500 (13 months)
$23 monthly for $500 (21 months)
$100 monthly for $720 (7.2 months)
Did my formula hold up? No! I will point out the site that sold for 92 months revenue as an example. This site is old (1.5 years but not extremely aged) has a premium domain name and great brand recognition. The domain name alone has a value in the five figures (in my opinion and a lot of the people that placed a bid on the site) which leads me to the point that there are hundreds of factors that go into valuing the website not just the common multiple. Determining the price is hard and there is no simple answer it is on a case by case basis. To help you at least get an idea of what your website is worth I am starting a series to teach you how to sell your website. In my next blog post I will cover even more tips for selling your established website.
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