Permanently Closed Marketplace Sales Thread

[royserpa]

Correct me if I'm wrong, but you state that earnings are about $1,900 per month at 10-20% ROI. So ROI per month is $190 to $380?

12 months ROI would be $2,280 to $4,560 if business is stable. That's a far cry from the $26.6k you're asking for. If you're willing to bring the price down by a lot, I'd be interested.

ROI is 20%-40% from what you invest in leads. Some leads can be sold for higher and some can be bought at a lower point. Either way, you profit.

If it's not valued at $26.6k, what would you value this business at? Usually businesses are valued at 12x-24x times the average monthly income.

 

[royserpa]

Great business for passive income! Ask away!

 

[1morenoob]

ROI is 20%-40% from what you invest in leads. Some leads can be sold for higher and some can be bought at a lower point. Either way, you profit.

If it's not valued at $26.6k, what would you value this business at? Usually businesses are valued at 12x-24x times the average monthly income.

No, they're valued at '12-24'x their profit or I'd just buy some iphones for £450, sell 100 of them £350, lose 10k and then sell my business for £420-840k.

Assuming that the income isn't dropping in recent months (bet it is eh) then 30% of 1900=570 per month gross profit.
I'd then need to get a VA for a unknown amount of time, I'll be generous to you and say that I can find one to work the x amount of hours for $300.
Then 3 hours a week of whoever buys its time (again I'll be generous and say someone who's poor from a 3rd world country buys it and their time is only valued at $5 a hour)=12 hours a month=60
Net profit=210$

Then bad factors:
new business
Risky niche
risky business model
blackhatworld wouldn't exactly be top of my list of favourite places to buy a 'business'

10 months times net profit due to the above added risk=$2100 at the most (again this is assuming the income isn't dropping and being generous on the above factors)

I'd give you $1000 for it

 

[Deleted member 969102]

No, they're valued at '12-24'x their profit or I'd just buy some iphones for £450, sell 100 of them £350, lose 10k and then sell my business for £420-840k.

Assuming that the income isn't dropping in recent months (bet it is eh) then 30% of 1900=570 per month gross profit.
I'd then need to get a VA for a unknown amount of time, I'll be generous to you and say that I can find one to work the x amount of hours for $300.
Then 3 hours a week of whoever buys its time (again I'll be generous and say someone who's poor from a 3rd world country buys it and their time is only valued at $5 a hour)=12 hours a month=60
Net profit=210$

Then bad factors:
new business
Risky niche
risky business model
blackhatworld wouldn't exactly be top of my list of favourite places to buy a 'business'

10 months times net profit due to the above added risk=$2100 at the most (again this is assuming the income isn't dropping and being generous on the above factors)

I'd give you $1000 for it

Think you hit the nail on the head with this one!

 

[royserpa]

No, they're valued at '12-24'x their profit or I'd just buy some iphones for £450, sell 100 of them £350, lose 10k and then sell my business for £420-840k.

Assuming that the income isn't dropping in recent months (bet it is eh) then 30% of 1900=570 per month gross profit.
I'd then need to get a VA for a unknown amount of time, I'll be generous to you and say that I can find one to work the x amount of hours for $300.
Then 3 hours a week of whoever buys its time (again I'll be generous and say someone who's poor from a 3rd world country buys it and their time is only valued at $5 a hour)=12 hours a month=60
Net profit=210$

Then bad factors:
new business
Risky niche
risky business model
blackhatworld wouldn't exactly be top of my list of favourite places to buy a 'business'

10 months times net profit due to the above added risk=$2100 at the most (again this is assuming the income isn't dropping and being generous on the above factors)

I'd give you $1000 for it

That's not how it works.

You have to take into account monthly revenue, monthly profit, last 12 months earnings and a lot more to make a business valuation.

If you go to website brokers, you will see some work with profit and some work with revenue. Generally, they work with revenue and not only profit. (@meathead1234 can confirm this information)

Monthly average revenue for last 12 months (August 2015-August 2016) is around $2,080 now, but still I would sell the business assets and relationships for $26,600 as a straight sale.

Not only I'm offering a straight sale, but also a buyout/earnout type of deal, where there is a fixed amount paid upfront and the rest is paid by running the business and splitting the profit.

A buyout/earnout deal can be:

$9,000 USD upfront and the other $17,000 USD paid by running the business and splitting the profit and pay it in 6 to 12 months.

 

[The Blackhat Guy]

Too expensive...good luck man

 

[1morenoob]

That's not how it works.

You have to take into account monthly revenue, monthly profit, last 12 months earnings and a lot more to make a business valuation.

If you go to website brokers, you will see some work with profit and some work with revenue. Generally, they work with revenue and not only profit. (@meathead1234 can confirm this information)

Monthly average revenue for last 12 months (August 2015-August 2016) is around $2,080 now, but still I would sell the business assets and relationships for $26,600 as a straight sale.

Not only I'm offering a straight sale, but also a buyout/earnout type of deal, where there is a fixed amount paid upfront and the rest is paid by running the business and splitting the profit.

A buyout/earnout deal can be:

$9,000 USD upfront and the other $17,000 USD paid by running the business and splitting the profit and pay it in 6 to 12 months.

Those sorts of businesses are higher profit though, e.g some sites that just produce 'quality content' make out this is free because they've been doing it themselves. The same as when you buy a offline business most will say its making 50k profit but when you look closer it turns out both owners are working fulltime so obviously the 50k figure is bollocks.
Your business is buying/selling, obviously the profit is pretty much the only important factor (other than the other risks etc I noted).
High turnover is actually a bad point for your business, not really a major one hence me not bothering to note it but it would be better if it was making $500 per month with $200 profit as that means less capital is needed to run it.

$26k is an absolutely ridiculous figure and in no way is it worth anymore than 5k but good luck with your sale. Why don't you see if meathead can value it for you? We can have a bet on how much he says if you like lol.

If turnover is an important factor then I'll start my iphone business above and you can have it for a discount?
'Iphone business selling £35,000 per month' can be yours for £50k?

 

[The Blackhat Guy]

Same here. I'm wondering if @meathead1234 can value it for us, because I'm also think that this price is ridiculous

 

[royserpa]

Those sorts of businesses are higher profit though, e.g some sites that just produce 'quality content' make out this is free because they've been doing it themselves. The same as when you buy a offline business most will say its making 50k profit but when you look closer it turns out both owners are working fulltime so obviously the 50k figure is bollocks.
Your business is buying/selling, obviously the profit is pretty much the only important factor (other than the other risks etc I noted).
High turnover is actually a bad point for your business, not really a major one hence me not bothering to note it but it would be better if it was making $500 per month with $200 profit as that means less capital is needed to run it.

$26k is an absolutely ridiculous figure and in no way is it worth anymore than 5k but good luck with your sale. Why don't you see if meathead can value it for you? We can have a bet on how much he says if you like lol.

If turnover is an important factor then I'll start my iphone business above and you can have it for a discount?
'Iphone business selling £35,000 per month' can be yours for £50k?

Or how much is it worth to you? Would you be interested in acquiring it?

Well, as I previously stated, we can do a buyout/earnout deal with a fixed upfront payment, making it less hard on you to give a lot of money at a time.

I asked @meathead1234 a few months ago over Facebook and he told me he was only interested in doing business with ranked sites or sites that were getting passive traffic through search engines. Probably because he sells passive income properties and this business requires interaction.

 

[1morenoob]

Or how much is it worth to you? Would you be interested in acquiring it?

Well, as I previously stated, we can do a buyout/earnout deal with a fixed upfront payment, making it less hard on you to give a lot of money at a time.

I asked @meathead1234 a few months ago over Facebook and he told me he was only interested in doing business with ranked sites or sites that were getting passive traffic through search engines. Probably because he sells passive income properties and this business requires interaction.

Already told you I wouldn't pay more than 2-3k for it and thats assuming the revenue hasn't dropped in the last couple of months which I'd bet my left bollock it has?
You can probably get 5k for it from some mug on here but no way are you getting 26k

 

[Leith]

ROI is 20%-40% from what you invest in leads. Some leads can be sold for higher and some can be bought at a lower point. Either way, you profit.

If it's not valued at $26.6k, what would you value this business at? Usually businesses are valued at 12x-24x times the average monthly income.

Just to clarify..

With earnings of $1900/m and a max ROI potential at 40% - that makes monthly profit approx $760 (this is just the "max" - I'm sure the ROI isn't going to be 40% every single month).

So you're asking for 35x the monthly profit with a BIN of $26.6K. lol?

Doesn't really add up or make any logical sense whatsoever to me, but maybe someone else sees the "opportunity"(?) in this. All the best.

P.S - just read in the original post that you were looking to sell for $32K based on:

"Asking Price: $32,300 (17 months @ $1,900/m)"

I've sold a few sites for more than this before so I have a rough idea on what I'm talking about. Your price seems way too far fetched.

Since when do you value a site purely on monthly gross alone? If I promote a site with PPC and I spend $5K/m to make $5.1K - does that mean my site is worth $5.1K x 17?

Anyways, just see a lot of flaws with the pricing here. Hope whoever considering buying does their due diligence.

 

[royserpa]

Just to clarify..

With earnings of $1900/m and a max ROI potential at 40% - that makes monthly profit approx $760 (this is just the "max" - I'm sure the ROI isn't going to be 40% every single month).

So you're asking for 35x the monthly profit with a BIN of $26.6K. lol?

Doesn't really add up or make any logical sense whatsoever to me, but maybe someone else sees the "opportunity"(?) in this. All the best.

P.S - just read in the original post that you were looking to sell for $32K based on:

"Asking Price: $32,300 (17 months @ $1,900/m)"

I've sold a few sites for more than this before so I have a rough idea on what I'm talking about. Your price seems way too far fetched.

Since when do you value a site purely on monthly gross alone? If I promote a site with PPC and I spend $5K/m to make $5.1K - does that mean my site is worth $5.1K x 17?

Anyways, just see a lot of flaws with the pricing here. Hope whoever considering buying does their due diligence.

I see, so on average, the monthly profit is $350 or so. Are you saying I shouod base the price according the average monthly profit?

If so, you are saying the price of this business should be around $5k? Sounds interesting as several companies I've showed my website for sale, have told me it's valued at a higher point...

I wonder how much you would value this business at.

 

[shubhuworld]

Thanks for the share.Well done.

 

[royserpa]

Thanks for the share.Well done.

Ahmm thanks mate.

---

If you think the business is not worth $26,600 USD, let me know how much you think it's worth and we can go from there!

 

[Commoner]

Hey Royserpa,

Here again to chim in. Perhaps, you might like to get a professional valuation from experts like Meathead or someone so as to flip "faster" - eliminate biases from buyers & seller too!

Warm Regards,
Commoner

 

[Leith]

I see, so on average, the monthly profit is $350 or so. Are you saying I shouod base the price according the average monthly profit?

If so, you are saying the price of this business should be around $5k? Sounds interesting as several companies I've showed my website for sale, have told me it's valued at a higher point...

I wonder how much you would value this business at.

With a monthly profit of $350 - I'd say between $2K to $5K. Doesn't make sense if it's any bigger than that amount based on the history of the site. I could be wrong though, but this is just my assumption as I've sold similar sites in the past (CPA).

I had a site (CPA) doing approx $6K/m which was valued at 16x monthly profit (plus, my site was very active/had a chunky email list/social media followings and so on...)

So just based on that sale of mine, I wouldn't pay any more than $5.5K for yours.

And yes, obviously you need to base the price according to your profit? Why would you do it any other way?

I can make a site right now in a few minutes...

Promote it using FB ads by spending $10K and let's just say I make $5K back.

So the site is making $5k/month (not profit though). That doesn't mean I can sell the site for $60K+ (12-24x monthly revenue)... that's not how it works. The fact that you make $1900/m revenue is great, but you need to factor in your profit as the main "logic" behind the BIN price.

Again, I'm no expert with site flipping. This is just based on my current experiences/history.

 

[royserpa]

Hey Royserpa,

Here again to chim in. Perhaps, you might like to get a professional valuation from experts like Meathead or someone so as to flip "faster" - eliminate biases from buyers & seller too!

Warm Regards,
Commoner

Thanks man. Talked to @meathead1234 over Facebook a few months back and didn't even want to give a valuation. Though, perhaps if I ask nicely, I may get a nice response this time.

With a monthly profit of $350 - I'd say between $2K to $5K. Doesn't make sense if it's any bigger than that amount based on the history of the site. I could be wrong though, but this is just my assumption as I've sold similar sites in the past (CPA).

I had a site (CPA) doing approx $6K/m which was valued at 16x monthly profit (plus, my site was very active/had a chunky email list/social media followings and so on...)

So just based on that sale of mine, I wouldn't pay any more than $5.5K for yours.

And yes, obviously you need to base the price according to your profit? Why would you do it any other way?

I can make a site right now in a few minutes...

Promote it using FB ads by spending $10K and let's just say I make $5K back.

So the site is making $5k/month (not profit though). That doesn't mean I can sell the site for $60K+ (12-24x monthly revenue)... that's not how it works. The fact that you make $1900/m revenue is great, but you need to factor in your profit as the main "logic" behind the BIN price.

Again, I'm no expert with site flipping. This is just based on my current experiences/history.

Obviously, that makes sense, though here I'm not selling a business in the red

I'm selling a business in black.

Lots of people have messaged me about this, so I will create a "bargain" thread, decreasing the price as stated.

I think, price could go up to $6k as per last months earnings.

I will discuss this with @I know SEO and @Apricot and see what I can about this.

Anyway, thanks!

EDIT: I see some sites like empireflippers are actually looking after the profit and some sites like latonas.com go after the revenue. Both companies haver worked with giving me a valuation and interesting enough, they are kinda different. Guess it depends who you work with.

 

[meathead1234]

Seeing as I've been mentioned multiple times in this thread:

- In the first half of the year, we sold over $12m in websites by value. We do not only sell "passive" businesses. I spoke to Royserpa privately about his business months ago. I keep discussions I have private, but for various reasons this was not a good fit for my company to sell, hence not providing a valuation.
- Web businesses are sold off a multiple of profit, not revenue. Anyone who tells you otherwise is wrong.

@royserpa - in future, if you want to disclose elements of a private discussion on a public forum, it is polite to let the other person know. Particularly when you have conveniently left out parts of our discussion to suit you...

 

[tienhuynh]

I'm also work with marketing agency that is dedicated to get me leads.

 

[Deleted member 969102]

Just so I am clear, is the 1.9k/month after paying for the leads and VA?

Correct.

I was told the $1900 was profit. Some shady stuff going on here