What would you pay for a "perfect" site?

**DomainMagnate** · August 19th, 2011, 07:15 PM

A 'hypothetical' question for you all

Consider a site that:
- requires absolutely no maintenance and hasn't been updated for years
- earns a stable income from several different sources, in a competitive niche with an abundance of advertisers
- is on a valuable, premium generic domain that is perfect for the niche
- receives traffic mostly organic from search engines, but had no seo done for it and rankings are natural from aged links and quality content.
- has potential to make significantly more money with some work towards content, optimization, links
- in a niche that you're familiar with and have some interest towards
- sold by a trustworthy seller
- in a price range that you're comfortable buying in according to your finances

what's the maximum revenue multiple you would pay for it?

**Kay** · August 19th, 2011, 11:46 PM

I was going to vote for "up to 2 years". But this "perfect" site sounds too good to be true. There has to be a catch. I'd want to know why the seller is letting this beauty go. Maybe they died?

Hypothetical is fine - I like games of pretend - but this situation sounds too strange to be believable. If you were Harry Potter's pal, how much would you pay for a broomstick?

**DomainMagnate** · August 20th, 2011, 02:26 AM

Lets say seller "needs the money to fund other projects", the usual reply

Well, alright it's not completely perfect here, most traffic is from search after all and it's competitive niche. But as close to perfect as you can reasonably expect.

The catch is it's not gonna be cheap so you have to figure what's the maximum you're willing to offer.

**TheodoreK** · August 20th, 2011, 02:29 AM

I voted 3-4 years going by your bullet points, Domain Magnate.
However, I think the conditions that make a site "perfect" might differ from buyer to buyer.

**Clinton** · August 20th, 2011, 02:40 AM

The 8+ is me. And that's despite the fact that it relies on SEs for traffic (that ain't a Good Thing, mate, it's a negative factor!)

**JockP** · August 20th, 2011, 04:14 AM

Clinton is not conter to what you believe.

I would think you were being sarcastic with that number.

If it had 30% SE traffic I think you might pay 8 years, but that could be a little high.

**Clinton** · August 20th, 2011, 04:23 AM

Not at all. I'd pay 20x or 30x even, depending on the circumstances!

If I came across a quality, self-running site making $100 a month and I were confident I could increase it to $400 a month ($4,800 pa), I'd happily pay $9,600 as, to me, it's only 24x what I expect to make per month.

**Andy** · August 20th, 2011, 06:25 AM

Originally Posted by Clinton

Not at all. I'd pay 20x or 30x even, depending on the circumstances!

If I came across a quality, self-running site making $100 a month and I were confident I could increase it to $400 a month ($4,800 pa), I'd happily pay $9,600 as, to me, it's only 24x what I expect to make per month.

@Clinton,

You are soooooooo patient! I see multiples like that and all I can think of is "it would take me forever just to break even".

@Kay,

I can see someone opting for a lump sum now rather than a trickle over the years. Over here, there are companies that advertise to buy annuities and such. I find it hard to believe so many people get such things, much less are willing to give them up for "cash now".

Me? I'd rather have that steady, dependable trickle.

Andy

**QualityNonsense** · August 22nd, 2011, 06:44 AM

Most I've ever paid is 8x years earnings, for a site with just AdSense on it which I knew I could swap for affiliate ads.

**DomainMagnate** · August 22nd, 2011, 07:14 AM

Originally Posted by QualityNonsense

Most I've ever paid is 8x years earnings, for a site with just AdSense on it which I knew I could swap for affiliate ads.

did that work out well, paid off?

I think the highest I ever paid was around 3 years rev. In fact I'm buying another site now for close to that, but I'm fairly confident I'l be able to improve it quickly to increase revenue.