Large Scale sites = good value for buyers
It’s summer, and I’m considering adding a very established and revenue bull to my portfolio. With some extra time, I’m already working on some projects, but I could easily re-arrange my priorities to accommodate a reliable, steady earner.
I was pretty surprised at what I saw:
One, a huge webmaster community (V7N.com) for sale for 6 months revenue, and 1 year’s profits. Has multiple income streams from advertising and from being a contextual link company. Why so cheap??? Because of its scale. With a price tag of $220,000, it’s sticker price seemed to drop only based on it’s large scale and unique niche amongst “real businesses.” But is it not unreal that a hugely profitable business can go for only 1 year’s profits!?
Another niche sports news site with a price tag of $7,000 - has big visitors, 2 years of age, PR4, good domain, nice design, and comes in at less than 8 times monthly revenue! The revenue is diversified between CPM and CPC, while text links and affiliates have not yet been utilized yet.
While it would take some time to set up a better business system, and a portion of revenue to find very very good writers, I think I’m still correct in my claim that these larger scale sites are not getting the fair, historical valuation makes them a good value.
So not to trying to make my quest of acquiring sites more difficult, but I think that buyers with some money to spend can find favorable valuations in content, ad driven websites. Buying established businesses at 6 to 8 times the monthly revenue is cheap, no matter what niche your [legitimate] business operates in. Period.
Related Articles:
- Don’t do Startups, Buy a Business..?
- The Stock Market for College Entrepreneurs
- Watch Me Make A WebSite
- Does College Spring Break = Decline in traffic?
- The Online Entrepreneur’s Meditation of the Day - 09/10/2007
Related Ads:
That’s very interesting. You could build up a serious site portfolio doing that.
If you don’t mind me asking, where’d you find these listings?