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Web Business earning $30k annually. Should I sell?

Discussion in 'BlackHat Lounge' started by dCorp, Dec 30, 2009.

  1. dCorp

    dCorp Senior Member

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    Hi,
    Im seeking an advice from experienced people here and I could not find a better place to start this thread, so IF mods find this place is not suitable to post such threads, PLEASE move it to appropriate place.

    OK, So actually I have a few web businesses running for quite some time now and this is JUST one of them. Its making me about $2.5k/month via just CPA programs.

    Since I need money for some business requirement, (setting up my physical office with staff of 6-7 people along with Complete Infrastructure PLUS ONE other ongoing BIG project) SO Im considering to sell this web business. I could have never thought to sell this business IF I have not received an offer of $12k. for this business AFTER I started a thread here, at BHW BUT I simply refused this offer. Then again this person offered me $15k for this business and SINCE I also wanted some CASH for my business needs, I am considering to sell this now BUT before going further, I need you people?s suggestions as I AM NOT desperate to sell this business coz its making me money 100% automated for last 15 months now. Following is some info of this business :

    It contains 2 websites, 1 Main site and 1 other (linked) site.
    Main website having about 30k visits/month with 70k pageviews/month.
    About 84% traffic comes from Search
    About 10% ?Direct? traffic and rest 6% from ?referring sites?
    Traffic is increasing at a slow and steady pace.
    About 87% traffic is from India
    Earning source is CPA programs (ONLY Indian CPA Programs but paying in time since October 2008)
    Im using Grey Hat method to deliver leads to cpa company (faking the referrer with 100% NON TRACEABLE method)
    Stable earnings since October 2008

    Since I already have an offer of $15k for ?this biz? BUT as I stated above, Im not dyeing to sell this baby as this is one of my BIG money tree and since I ONLY spend about 1-2 hours/week to maintain this site, its almost 100% automated money for me.

    I know that I can also do some SEO to the site (actually done so by creating a link wheel with 26 web 2.0 properties, about 2 weeks back) and that could raise the traffic to the site in future resulting in making more money from the site BUT Im so busy with my current BIG project and office setup that I hardly find time to work on this site. (since its still making me about $2.5k/month 100% automated, I hardly find time to promote it)

    Now tell me, If your were me, what would you do?

    Would sell the site?
    Would reply with counter offer?
    Would clearly said ?NO??

    Kindly post your suggestions WISELY and depending upon your personal experience, in this kind of situations WHAT you do? COZ I will NOT sell this money tree WITHOUT getting experienced people input here as I DO NOT want to regret my decision AFTER selling my baby.

    Kindly Advice
     
    Last edited: Dec 30, 2009
  2. Theodore

    Theodore Power Member

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    For me it would all depend on how much i think this new business opportunity was going to make if it was going to make me more than about 4k a month i would consider it but you also got to think maybe if i just wait a month or 2 i could set up the business without having to sell my other business that is actually making me money if you see where im coming from?

    If there is no dead line for this new business idea i would just wait in till you have made some spare $$$ so you can set it up and then and you'll still have a regular income in case this project doesn't work out like you wanted it to.

    thats just what i'd be thinking but on the other hand i dont have a website that makes me that much a year :p lol
     
  3. rubberband

    rubberband Registered Member

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    First, I think $15k for a site making $2.5k a month is a little low. That's only 6 months profit and for an established site, especially with so much SE traffic, you should be looking to squeeze out 8 months value.

    Second, it's hard to know if you should sell or not without knowing your whole situation. If it's more than half your income, then I would lean towards not selling. I would try and promote it harder to see if you could start doubling up profits instead.
     
  4. omarabid

    omarabid Registered Member

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    try to boost it, if it makes u $4k the next month, just wait 3 months
    Posted via Mobile Device
     
  5. bertbaby

    bertbaby Elite Member

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  6. hollinger

    hollinger Junior Member

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    If you have new business to invest in then sell it... if you want to go level higher and make even more money. If you don't have backup income then think twice before selling.
     
  7. monetizaction

    monetizaction Newbie

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    2,5k for 2hours a week? tough decision I'd say but if you think this
    new opportunity is worth it, you should then really think about it I guess,
    even though no one can say no to 2,5k on autopilot, thats the art of business
    mate.

    That's your call but you have to be REALLY confident on this new project ;)
     
  8. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    in this economy?! i wouldn't sell unless i knew for sure that i had something else to fill the gap...
     
  9. dCorp

    dCorp Senior Member

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    OK. Thanks for all ur input friends but let me clear a few more things :

    1. This is not my WHOLE income but is about 25% of the total income.
    2. Im 200% confident about my new BIG project so, I've no doubt abt its success
    3. I was having plans to promote this site but since my new project is NOT giving me enough time, I can not focus on this site.
    4. I agree $15k is just 6 months income BUT Im considering to sell coz I'll get the money upfront which can be used to fund my bigger project.
    5. This bigger project is expected to earn about $20k/month according to my projections and in the worst scenario, Im 200% sure (I have tested it) that it'll make MINIMUM 10k-12k/month, SO risking 2.5k is not at all a big issue with me.

    So, kindly keep in mind the above points BEFORE giving your advice.

    Please keep your suggestions coming.
     
  10. g111k

    g111k Regular Member

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    Considering your situation, as in you're not starving for cash and you have bigger things going on, I'd definitely sell it to fund the bigger project.... however I would definitely not sell it for 15k and I'd definitely not sell it to anyone here. And I would consider 2 different options:

    1) I'd sell it to an established businessman / company that's not as familiar with the industry, since you have records showing a steady income with likely very little expenses, they will be ready to shell out WAY MORE than 15k, as in the real world businesses spend MUCH MORE than that on models that are projected to BREAK EVEN in 2-3 years time... forget making pure profit from day 1.

    2) I'd put together a quick plan for angel investors instead of just selling all of it. The idea would be to get investment for MOST (> 51%) shares in the company. You get a "managing crew" to run / expand the site and you just collect your share, since you're not the primary shareholder you don't have to worry about what's going to happen to it, and can sell your shares if you ever need quick cash at some point later down the line.
     
  11. mil0x

    mil0x Power Member

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    I would keep it unless that person doubles it offer. Seriously, having that kind of automated cash coming in every month is really valuable in this 'economy', 15k is way too low for an established business that makes 2.5k basically automatically. I think you will regret a sale, especially when you can afford to outsource promotion/link building later on.
     
  12. dzoniij

    dzoniij Regular Member

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    IF IT MAKES 30K annually then sell for ~ this amount ~30K not less.
    Sell only if 30K invested in new business next year makes more then 30K simple as that otherwise keep it.
     
  13. henga

    henga Junior Member

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    "Im using Grey Hat method to deliver leads to cpa company (faking the referrer with 100% NON TRACEABLE method)"


    Care to share some info about this, would be good to learn ;)
     
  14. dCorp

    dCorp Senior Member

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    Well, I too am understanding that selling it for 15k is way, too less BUT its his offer, and I may reply with counter offer and I suppose he can go up to 20k easily. Now, considering the 2nd point, WHY to sell for "too low" money? Well, I dont think that I can sell it to some good company OR some white hat people COZ the site involves a grey hat method which LOTS of people will consider as a MINUS point and I ALSO understand this. So, whenever I will sell the site (if ever I finally decided to sell), it will be go to someone who can ACCEPT this MINUS point and have NO PROBLEM with buying the site and considering this -ve factor, I dont think I can get 2 years or 3 years of revenue for this site.
    But still as I said, Im not dying to sell it and thats the purpose to start this thread to get some good suggestions from EXPERIENCED people here.

    Pls keep them coming
     
    Last edited: Dec 31, 2009
  15. dCorp

    dCorp Senior Member

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    Sorry, I do not understand your this point. Could you pls make it clear to me?

    @Takita : It only requires about 1-2 hours/week for me to manage and Yes, It can be multiplied with a decent effort BUT since I have no time to spend on this site, Im not able to do so. Also, I require money (Huge money) to fund my next big project, Im considering to sell it to get some good cash upfront.
     
    Last edited: Dec 31, 2009
  16. truepals_forever

    truepals_forever Senior Member

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    Cant you take a loan from the bank ?
     
  17. dCorp

    dCorp Senior Member

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    For people who are advising me to take a loan, can someone point me to a Bank or a financial institution who provide LOANS to Internet Marketers in India? Open your eyes folkes, NO ONE understand this business in any part of the world. (as per my knowledge). I have just purchased a LAND to build my dream home on that (500 Sq.Yard) for about $120,000 (Approx 56 Lacs INR) and when I contacted Nationalized and Private banks for a loan to construct the house, they DID NOT understand my business profile and denied the loan (for about 40 lacs INR). I told them that you have a bigger security (my land papers worth about 60 lacs INR as per todays market value) PLUS once the house would be built on that, it will worth more than 1 Crore INR, but no one seems to try understand this fact.
    Since I have invested all of my money earned in last 2 years in that land purchase, Im almost out of cash now and my project is demanding MORE money to pump into that in order to get it going at a good pace. Yes, I can chose NOT to sell the site, but that would delay my project which I CAN NOT afford at this point BUT still, if I have to regret my decision after selling it, I would not sell it.

    @Hagiology : Im not selling it for 12k. The offer was for 15k which might be increased up to 20k, IF I seriously decided to sell.
     
  18. g111k

    g111k Regular Member

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    Sorry I didn't realize you're from India, but nevertheless there should Angel Investors out there... basically investment groups outside of banking. The best I could suggest is make use of your connections and resources you got, hunt these groups down and get in touch. YES they WILL understand this model (to an extent), a lot of smart businessmen KNOW that investing in internet ventures is inevitable, they just don't know how and where... if you provide them with how and where, you'll get the money you need.
     
  19. Peter Shaw

    Peter Shaw BANNED BANNED

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    Use your profits to set up another site?
     
  20. drey2k

    drey2k Power Member

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    Wait you are making 120k/year and you cannot afford to spend 15k on a new project? you kidding us or something?