webber286;151740 wrote:
I think you would need more than 3 months of revenue to get a decent valuation. Also, if the advertising you are selling has long-term contracts then you can expect the revenue to be more steady, which would look better to a potential buyer. It’s tough to say what the factor is, but somewhere between 12x and 18x of average monthly revenues would seem like a reasonable valuation, especially if you can prove longer term ad purchases and a reasonable expectation that those contracts would renew. And of course as said before some expectation that traffic would continue as it is or better.
Thanks for chiming in. The 3-months details that were mentioned were not our only revenue, just the upward trend we were experiencing.
We also had been using a front-page bidding process initially but have since switched to flat-fee listings. We also offer 3-month discounts and 1-year purchases in some instances as well. Still trying out new options to see what is best.
I expect with our WPT promotion to adjust the prices within a month or two, due to increased traffic. So we only have one 1-yr purchase available, all others max at 3-months to prevent cutting our potential future profit short.