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Am I getting paid a fair price

Discussion in 'Site Flipping' started by viking011, Apr 21, 2020.

  1. viking011

    viking011 Regular Member

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    So recently I have decided to sell a website I own, the reason is I just dont have the time to invest in it.
    The problem when listing it I had is that I didnt know how to price it as the profit the website makes is directly tied to time invested into marketing it.

    As mentioned before I do not have time to commit to this and the only thing I do is a 24 hour bump on a few forums, even with such little work though it managed to get around 1300$ in sales since the begining of this year.
    As it is social media reselling the profit is around 700$ which is around 150-200$ per month.

    The offer I got was 400$ and as I dont have a need for the website I took it and we should go thru with the escrow tomorrow, but as I am getting ready to go to sleep I keep thinking whether I should do it.

    The only thing worth in the sale is the domain name, the script is bought from codecanyon which everyone can buy and the rest depends on the work you do, I guess I can easily replicate the website down the line if I want to invest more time into doing something like this, so that is why I think its not worth more then the 400 offered, yet I dont know.

    Any input would be greatly appreciated ! :)
     
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  2. Razen666

    Razen666 Jr. VIP Jr. VIP

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    That's what they all say on Flippa :D:D:D. But to answer your question $400 it's a low amount for a site that's making 150-200 per month
     
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  3. CPA GOD

    CPA GOD Jr. VIP Jr. VIP

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    Is it SMM panel?
     
  4. viking011

    viking011 Regular Member

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    Well I dont honestly, the orders are fulfilled automatically but the advertising is manual and I kind of drifted onto other projects.

    Not a panel, its targeted at the end consumer.
     
  5. LightZOS

    LightZOS Jr. VIP Jr. VIP

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    I'd ask for 600, no less than 500
     
  6. MichaelReyeeees

    MichaelReyeeees Junior Member

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    Usually people sell their businesses based on how well you think itll do. So try to figure out how long the site will itll likely last. Then how much its likely to make per year/ per month.

    And based on that you have, time/money. For example, if you believe the site will last 1 year(12 months) and youre generating 120 per month, then you can estimate that the site will earn 12 * 120 = $1440. To that you can also add other value with youve added, for example existing backlins, SEO, brand value etc. An example would be 500. Id say you must atleast get that amount of money back.

    So $500(assets) + 1440(possible returns in a year)

    Now the $500 is non-negotiable, but the $1440 is. If you can only gaurantee 1440 why would I as a buyer pay you that much since I want to earn more? You have to play with that so maybe half or 3/4 its up to you and what you think you can do.

    I hope this was helpful cheers
     
  7. viking011

    viking011 Regular Member

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    Thanks for the input, I might ask for more.
     
  8. unsungwarrior

    unsungwarrior Jr. VIP Jr. VIP

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    If you are consistently making $200 per month for the last 6 months then you should expect atleast 15x. So you can expect around $2500-$3000.
     
  9. viking011

    viking011 Regular Member

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    I am , I tried to bump the price to at least 600 but he didnt want to budge so ultimately I decided it was to low .
     
  10. fine200

    fine200 BANNED BANNED

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    don't sell that price,It's very low.
     
  11. viking011

    viking011 Regular Member

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    Yes, decided to listen to you guys and decided against selling it for such a low price :)
     
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  12. Mr.FourtyFourty

    Mr.FourtyFourty Newbie

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    Can you show us your website
     
  13. LenSMM

    LenSMM BANNED BANNED

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    that's not enough, but I'd say don't even sell it. It is recent, make it grow, grow content, the ranking will increase and so the sales. Squeeze and keep it more before selling, it's just stupid now.
    I have a similar website, planning to expand it gradually to the point I pay assistant to manage orders and get passive income. Than sell it to competitors or someone for the very least 50k in a couple years
     
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  14. yherrliche

    yherrliche Power Member

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    You're right, it's not worth much more than the $400 since you have to take into consideration the risk and labor the new buyer has to put in. Honestly it feels its not even worth the money to keep it for yourself, it seems tedious, you have better things to do, and the revenues aren't phenomenal.
    I'd take the $400, buy some champagne, and go on to the next project.

    I'm impressed, you're one of the only people on BHW who actually values their business correctly, you're smart and I can't wait to see where you're headed. :)

    EDIT : I just realized you changed your mind, too bad.

    EDIT EDIT : Also the difference is, everyone is telling you your website is work 3k, 5k or whatnot because its soo good, but ask them to buy it and they will run away. Because they know that's not its value, they just want to feel good about their own sites. I would buy your site for $400, and many people would. It made you a bit of money, I'd have a bit of profit for a couple of months before it dies out, and everyone's happy. Don't listen to the valuation of people who wouldn't put the money.
     
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    Last edited: Apr 25, 2020
  15. viking011

    viking011 Regular Member

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    In all honesty it is not that tedious, it mostly requires you to write "bump" on 4 different forums every 24 hours, the rest is automated and every now and then answer live chat for a question or problem.
    I do not value it much more then 400$ but selling it for only two months profit when it isnt that much work does sound like a bad decision. I am far from believing it is worth 12x the montly revenue and such nonsense . But it is a pretty cool domain with nice profits and I wouldnt let it go for less then 600$-800$ which realistically is where I should have been at from the start.
    I'd love to hear your input if you disagree though!
     
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  16. MoZzz

    MoZzz Jr. VIP Jr. VIP

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    Short answer is: It always depends on that work you have to put on to make such amount. But in reality you are not giving us much information about all the different metrics in place to make proper estimations about the price
     
  17. yherrliche

    yherrliche Power Member

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    One of the difference is, everyone is telling you your website is work 3k, 5k or whatnot because its soo good, but ask them to buy it and they will run away. Because they know that's not its value, they just want to feel good about their own sites. I would buy your site for $400, and many people would. It made you a bit of money, I'd have a bit of profit for a couple of months before it dies out, and everyone's happy. Don't listen to the valuation of people who wouldn't put the money.

    From an investor's point of view, this is not a bond, its a high risk business. You can't value it at 12x the revenues, because there's a slim chance its gonna actually do that. You probably managed because you're good, but the buyer won't.
    If I want :
    • $150 per month with NO risk, NO money loss, guaranteed by the government, I invest $22,222
    • $150 per month, with a actively managed fund by my bank, quite safe, I invest $12,000
    • $150 per month from the stock market, risky but still you can wait it out and get your money : I invest $2000
    Heck I invested 2000 euros in the beginning of April in a mutual fund from my bank and got 250 already, and its scored super low risk.

    So now with a risky business that requires work, with no intellectual property, with slightly blackhat tech and processes. You can see that the risk vs reward is not that great if you start going into higher prices.
    I felt you did amazing with $400 because you get a nice amount, and its worth it for the buyer too. The idea is not to scam the guy. The buyer will get the site for $400, the revenues will drop because he is not you, and he will make 500-600 profit by the time he fucks it up somehow. Everyone is happy.

    Sorry for the long post, but also he might want to invest in the site, try some thing etc, which will destroy the profit margin and kick the ROI in the dick. All these things are things investors think about, and I was impressed you managed to see it that way until the other people who never bought and will never buy a site gave you advice :D

    Obviously $400 to $600 is fair, I feel $400 is perfect but I'm not against going slightly higher, i'm not crazy.
     
  18. The Seer

    The Seer Jr. VIP Jr. VIP

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    Difference of $200... I big sum no doubt but I won't allow it to be a distraction to me. I would let go and focus on my most important goals.
     
  19. LenSMM

    LenSMM BANNED BANNED

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    How is 200 a big sum
    Anyway that guy is off he tells you to sell a new website doing 200 per month at 400. He is probably the guy whos trying to buy it. Try to scale it, if it's the website in your bio you will not get a lot of organic traffic and competition is high but as you made it to 200 in a couple months you can grow it. Big panels make milions, dont sell a new project for 200 nor 400, it's also a personal thing. You try a new road and then couple months in you get tired and sell for a ridiculous sum? (Because really, 400 is just usess).
     
  20. VSYNC

    VSYNC Power Member

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    Would be interested to know what that domain is since you keep saying it's as good as it it. Understand that you won't do that though, but good luck with whatever you do with this site.