+ Reply to Thread
Results 1 to 4 of 4

Thread: Valuing on projected profit

  1. #1
    Dormant Account
    Join Date
    Apr 2012
    Posts
    118
    Thanks
    8
    Thanked 81 Times in 47 Posts
    Rep Power
    7

    Valuing on projected profit

    Are you guys willing to pay on projected profit without that length of history yet? For example; if a website is 3 months old / has been turning a profit for only 3 months, but is asking 12 month's profit. So, if it is doing $3,000 a month profit, would you be willing to pay $9,000 or $36,000 with only a 3 month history?

  2. #2
    aka "meathead1234" Thomas is a Premium Member
    Join Date
    Apr 2010
    Location
    UK
    Posts
    1,165
    Blog Entries
    8
    Thanks
    158
    Thanked 502 Times in 261 Posts
    Rep Power
    26
    I've dealt with a lot of sites with relatively short history and it's rare for someone to pay a 12x monthly multiple with 3 months of history.

    I personally, MIGHT if I thought it was sustainable and going in the right direction. This is rare, though, as with just 3 months of history it's unlikely the traffic is going to be very sustainable. A situation where I would is if traffic had been around for years but had only been monetized recently. That way I could benchmark off previous traffic.

  3. #3
    Dormant Account
    Join Date
    Apr 2012
    Posts
    118
    Thanks
    8
    Thanked 81 Times in 47 Posts
    Rep Power
    7
    I agree and there are almost always unforeseeable obstacles along the way over a year to get to a strong 12 month history.

  4. #4
    Banned
    Join Date
    Nov 2012
    Posts
    24
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    0
    Probably not, it should be safer if the profits are consistent. New websites can bring sporadic traffic especially during the holiday season if the traffic is coming for gifts.

    Then it could have jumps in traffic for other reasons during the year which don't have anything to do with the holidays, so it does not make sense to value based on that.

+ Reply to Thread

Similar Threads

  1. An app for valuing businesses
    By Clinton in forum Valuing Websites, Blogs, Domains
    Replies: 0
    Last Post: 8 November 2012, 8:51 am
  2. Valuing a website
    By davidguide in forum Valuing Websites, Blogs, Domains
    Replies: 13
    Last Post: 2 August 2011, 6:52 pm
  3. Valuing a domain
    By ukbiz in forum Valuing Websites, Blogs, Domains
    Replies: 9
    Last Post: 4 March 2010, 2:08 pm

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts