Rough Idea on Price

[grynge]

My mate has 2 sites,

both .com
Site 1 is 7 year old, Pr2, Alexa 1.1mil, Compete 4.9mil very few links 300-600uq a day
Site 2 is 4 year old, Pr1, Alexa 2.2mil, Compete 2.4mil very few links 300-600uq a day

Both a 2 keyword domain names in the building industry.
Site 1 has AS and sells stuff AS is about $20 per day, products is about $80k drop ship a year around $40k profit a year (its set to 60% profit)
Site 2 has AS at around $20 per day it doesn't sell anything but runs on the same cart as site one does.

These are AUD figures and AU sales. There is little work to do except ring the orders through and pay for them. Paypal is the sites only sales gateway.

He is after a rough price as his is thinking possibly to sell both sites together. As this is a rough price, think that all figures quoted can be verified.

You could add new products but he has not done so in quite a while. Its a custom cart which can be skinned if needed but does very little other than take peoples names and money. Ask any questions you like, I can provide answers for them.

[grynge]

Thanks for the valuations lol.

We talked about it and I have taken over the sites for what he needed as a loan. We made a deal where he can purchase the sites back within 2 years for cost price plus any costs incurred by me and a proviso if I build up the turnover he has to pay me for 2 years of the extra turnover (my commission if I increase sales). I get all profits until he pays me back. As I already have wholesale accounts with most of the product there was little to do except change adsense/phone numbers/emails/company names etc etc

[meathead1234]

If you're loaning him the cash, surely the actual specific valuation isn't *that* important?

Why not just pay something simple like 1.5x net profit? That way he can buy it back at a fixed multiple if you manage to increase profits as well?

Been a long week so I might be well off the mark, though!

[Clinton]

grynge, from experience at SP and elsewhere I realised that people don't comment on valuation unless the domains are disclosed. That's why in the sticky to this section I put domain disclosure as a requirement.

The building industry is a very wide field with vastly different ad costs depending on the niche and term. With all the same stats as you've provided above those sites could have different values depending on the niche.

Anyway, I'll hazard an opinion. The fact that there's phone work involved would turn most buyers off and serve to depress the price. I'd say site one could get $50K-$75K

I like the deal you did with this mate of yours

[grynge]

We talked about me buying the sites which is why I sort of wanted a rough price but when we got down to the nitty gritty he needed the money as a short term loan. But as well all know short term loans can end up being long term loans, so we played with different scenarios and then came to rest with the one above. He gets out of a tight spot, with a chance to get his sites back. I should get the majority of my loan back within 6 - 10 months, when I say it like that I sound like a loan shark lol.