FP - Confuse on pricing the website

[a3d]

Hello Guys,
First of all I want to congratulate for this great forum.
I am new member here and still not selling any sites anywhere yet.

I have an established mp3 search engine site which is making me money since August 2011. Most of the traffic is from search engines.

For the past 2 month, this site revenue was $1k for August and now increasing to $3k for September. I expect the income will increase at least $4k for the next month. Im using VPS level 6 on hostgator that cost me less than $150usd per month. This automated mp3 search engine currently getting about 150k visitor per day. I guess the income is still can be increase because now this website just get average ecpm of 0.1 [ Matomy Media ]

I am planning to sell this website now but I have no Idea to set the price for this website. Im here looking for suggestion to set the reasonable price for this website. Thank you!

[BrettM]

Some of the brokers here would have a better idea, but based on buying some a 12x - 15x monthly multiple of profits isn't a bad ball park. 15x - 20x could be possible based on history, demand for that type of site, and especially sales ability to list the site, etc.

All of this is based on the site is sound and has good info to back the numbers, etc.

Good luck!

EDIT -- I just found a reply by Thomasto this thread I'd also suggest you check out -- similar conversation.

[Thomas]

With a site that is so young, it's unlikely you'll get a multiple much above 3-4x monthly profits. So something around the $10k mark would be about right. You're best off keeping it for about 6 months and then selling. Assuming you can show growth, sustainability of traffic/revenue then you would then be looking at a much more healthy multiple.

[a3d]

Thanks for both answers,
I am going to develop a little more on this website
I think at least 6 month of my revenue will attract more buyer
and I am going to find the best and highest paying ads network
so that I can sell it with higher price.

[Ryan Sorensen]

Good move on your part for keeping it. When you think long term like this on how much you could actually sell it for, plus the money you'll make in the meantime, what you invest in it now will yield a much bigger return 6 months from now.