Lol, very unrealistic indeed. Sell for 6x monthly = $6000,- and not $36.000,-, that would be selling for 36x monthly and no one pays that for a website. 12x is about average. Just quit reading there as it makes no sense to go through all your flawed calculations.
*blinks*
That's why it's important to always read over your work, especially when doing calculations at 3am. Lucky I don't have an ego otherwise I'd be pretty embarrassed. Thanks for pointing that out. How silly writing an entirely wrong figure to begin with that spoiled the whole analysis. When I started it I was just hammering out stuff off the top of my head rather than doing anything on paper, so I just wrote out that 36 then from there never looked back, doh!
Here's the correct calculations which show a different picture heavily in favor of non-selling.
I believe people pay up to 12x monthly, especially for longer running sites, so you could compare 12x monthly keeping for 1 year and you'd have something that sits between the 2 extremes below.
Unfortunately I can't edit my original thread, uh. This'll have to do:-
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For example. Compare(simple, unrealistic figures for the example):-
Build site A. Month 1 to 6 - $1000/mo, total of $6000. Sell for 6x monthly = $6k
Total for first 6 months of year = $6k + $6k= $12k
Build site B. Exactly the same income and sale price as site A for simplicity.
Repeating for another 6 months gives you a yearly income of 2 * $12= $24k
Now let's see what happens when we don't sell.
Build site A. Month 1 to 6 = $1000/mo, total of $6000.
Total for first half of the year = $6k
Build site B. Month 1 to 6 = $1000/mo, total of $6000.
Total for full year = $6000(Site B) + $6000(Site A 2nd half year) + $6000(Site A 1st half of the year = $18k
So by selling you make, in this example $6k more.
Now let's go to year 2.
The seller does the same again. Total for year 2 = $24k. Total across 2 years = $48k
The non-seller:
This year makes another $18k from the 2 sites(site C and site D), and this time he gets $24k for his previous 2 sites, site A and site B.
Total for year 2 = $24k + $18k = $42k
Total to date = $42k + $18k = $60k
So in year 2 the non-seller has made $12k more than the seller.
Year 3:
Seller: $24k
Non-seller: $18k + $48k = $66k
Year 3, total to date:
Seller: 3 * $24k = $72k
non-seller: $66+ $60k = $126k
In general we have:-
Seller income:
Year income = 24
Total income = 24X, where X = year
Non-seller income:
Year income = (2*12)*(X-1) + 18, X = year
= 24(X-1)+18
= 24X-24+18
= 24X - 6
Total income = Sum(n=1 to x) (24n - 6)
So, to find out when the income from the non-seller will equal that of the seller.
it's when 24X - 6 = 24
24X = 30
X = 30/24
X = 1.25
So at 1 year and 3 months, income will be equal.
Next we can find out at what point the non-seller will overtake the seller in terms of total income earned.
It's when the sum(n=1 to x) (24n-6) = 24X
To find out where they intersect you'd graph the summation by connecting the totals and zoom in to where it intersects with the 24X graph.
I can't find a graph calculator online that'll do it the way it needs to be done, but you can see that the total earned from the non-seller will be more between 1.25 and 2 years.
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