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Thinking about selling my SEO and Web design business

Discussion in 'Site Flipping' started by CenTex Hosting, Nov 8, 2011.

  1. CenTex Hosting

    CenTex Hosting Jr. VIP Jr. VIP Premium Member

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    I am thinking about selling out. This is only 1 of 7 different business that I own. I have never really put much work into this one.

    The seo and web design will have done about 80k this year under this name. I have one other SEO and design company that i started years back that i am not selling not getting out of the business all together just selling one.

    Thinking about asking 200k for it. New owner would get the domain customer list and current seo customers.

    Am i crazy. LOL just dont have the time to run two of them.
     
  2. jon_xx_x

    jon_xx_x Jr. VIP Jr. VIP

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    You're crazy for thinking you'll get $200k.
     
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  3. reishii

    reishii Junior Member

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    Can you share the site you would like to sell.
     
  4. thedon23

    thedon23 Elite Member

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    Why do you say that?
     
  5. Kickflip

    Kickflip BANNED BANNED

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    Ya I can't really see how you put a value of $200k on something that takes a lot of time to run and only made $80k this year. At the current rate, someone would have to bust their ass for a minimum of like 3 years to make their money back. And if you are only selling 1 of your businesses, buyers would most likely assume you will just take your customers with you after their check clears.

    What is the Alexa ranking and PR of the site? Is there some hidden value we are missing?
     
  6. cornkernel

    cornkernel Regular Member

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    hey,

    so what would be a good price? i'm just curious. i also want to know for future reference... is there some sort of system to working out how much to sell a business for?
     
  7. Kickflip

    Kickflip BANNED BANNED

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    The biggest concerns are going to be:
    1) How long has it been making this kind of income. Is it stable? Does it cost lots of acquire new customers and keep old customers?
    2) How much time does it take to keep running?
    3) Is the 80k profit or gross? What is the profit?

    Most people will want to make their money back in the first year unless its a HUGELY established company.
     
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  8. cornkernel

    cornkernel Regular Member

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    true. people don't want to buy a business that they have to spend 15 hours a day on, to make their money back in a few years time.
     
  9. CenTex Hosting

    CenTex Hosting Jr. VIP Jr. VIP Premium Member

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    80k is the profit that i made this year.

    Selling cause i don't want to deal with it anymore. Have my hands in too many things right now.

    This one i have not pushed and marketed like my other seo business. my main seo company does over 1 million a year. We have several large corp customers.

    I started this up in an area where a guy pissed me off so i out ranked his company and started taking his business and it has grown since with no marketing behind it except for natural ranking.
     
  10. jon_xx_x

    jon_xx_x Jr. VIP Jr. VIP

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    Kickflip above gave some good points.
    But usually for online stuff it's about a years profits.
    But a SEO site is tricky. You'd have to examine it closely.
    Maybe he's going door to door to businesses, and gets 10 visitors to his website? Maybe he just cold calls, or sends out emails. Is the site really worth that then? Maybe he's on a bunch of link networks that get caught in two months time and any rankings the site had are gone.

    There are a lot of variables. But like I said, a rough guide for online stuff is usually around 10-12 months profits.
     
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  11. jon_xx_x

    jon_xx_x Jr. VIP Jr. VIP

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    So if it's a SEO business, and you have a SEO business, why not send the customers over....

     
  12. CenTex Hosting

    CenTex Hosting Jr. VIP Jr. VIP Premium Member

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    yes I have looked at that as well as to have my other company buy this one out. I am looking at all options
     
  13. phpbuilt

    phpbuilt Jr. VIP Jr. VIP

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    You didn't make 80k profit last year is the problem. Let me put things into perspective for you.

    I am offering a JOB. This JOB pays 80k per year. Do you want this JOB? Great! Pay me 200k and I'll give you this JOB.

    Your business didn't make one penny. 100% of the money it made barely covered operating expenses ... employee labor was 100%. That employee was you.

    Anyone interested in this business of yours has to #1) be damn good with SEO, and #2) be damn good with website design. As such, if they wanted to work a JOB ... they would be entitled to 80k a year for the value of their labor. For someone to NOT want to work a JOB and instead invest 200k in a BUSINESS ... that business would have to gross over 80k per year before the business even makes 1 penny, because that's when the operational expenses are covered (paying for the employee).

    Final perspective point for you. I can do one of two things. I can get a job that pays me 80k per year, and take my extra 200k in my pocket and stick it in the bank. OR ... I can pay you 200k for your business that doesn't make 1 penny, but CAN pay its operational expenses (employee labor) ... so I will make 80k per year.

    At the end of 3 years ... if I did it your way (bought your business for 200k) I'd have 40k that I have lived on for 3 years, then yippie after that I get to keep 80k a year.

    OR ...

    I could have stuck the 200k in the bank, got an 80k a year job. Then at the end of 3 years, I've got 440k (my original 200k I stuck in the bank + 3 years at a job for 80k a year). AND I still got my 80k a year job.

    Not every SEO and website designer is capable of pulling down an 80k per year job. But I'll tell you this, every one that can shell out $200k and has the personal discipline to operate a business properly -- 100% of those people could pull down an 80k a year job.
     
    Last edited: Nov 8, 2011
  14. YugiMutou

    YugiMutou Junior Member

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    How bout If I run your business for and let you keep most of the profits ? Its a win win deal :cool:
     
    Last edited: Nov 8, 2011
  15. Gsecur

    Gsecur Newbie

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    The last two post are the most spot on, you should view the transaction as more of a job opportunity rather than an investment opportunity. Get an employee for 60k and manage them you keep the 20.
     
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  16. BigBuddy

    BigBuddy Account Under Review

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    Thread Moved to siteflipping section.

    @op - Contact Meathead to know the real value.
     
  17. dev_masta

    dev_masta Registered Member

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    Wanna do a great thing ?

    Let me handle it for you.

    I'm pretty new at this but am sure ready to learn.
    Been reading this forum for 10-12 hrs per day (some of the days) for the past few weeks.

    We could start with 40k-40k for first year, 50-30 second and 60-20 third year.

    It is something I really want to work (and learn) and I'm damn sure I'll be very committed to since that amount of steady income would really solve a lot and then I would be free to commit even more..

    What do you think about it ?
     
  18. Getwhatchuwant

    Getwhatchuwant Jr. VIP Jr. VIP Premium Member

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    Guys dont be so rough on him In the "real world" business often (maybe always) sell for more than they generate in revenue in one year. Who would sell a biz doing $100K profit per yeat for any less than that? In fact you likely can get 3 X's that. Because the idea is the new ownership can AT LEAST maintain that level or increase it over time.

    So you make a $300K investment if youu keep the biz for say 10 years and biz has stayed the same you have made $1million dollars over that 10 years...profit..

    On the flip side, this is an IM forum and people are looking to spend as little as possible to get the highest return. Even if they COULD get a loan for $200K then they have to pay down that debt over the life of the loan which cuts that profit margin.

    For a fraction of that $200k they can set up an LLC, pay for some local TV, newspaper and radio spots, send direct mail and even do some adwords advertising and likely generate enough biz to get to the $80K per year level...IF they know how to do websites and Seo of course.
     
  19. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

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    Lots of crap being posted as usual. Always amazes me how people talk about valuation when they have no idea.

    @ OP

    - how much recurring income is there from SEO customers monthly?
    - I'm assuming the staff will remain with the business?
    - Is there premises or do the staff work remotely?
    - Does that 80k include a salary you've drawn from the business?
    - how much work do you spend on the biz weekly?
    - How old is the biz?
    - Where does new business come from?
     
    Last edited: Nov 8, 2011