webber286 wrote:
All are good comments. In my experience with the professional services industry (my background), the expected purchase price would be 2.5X revenue. So that would be 2.5 x 60,000 = $150,000. Of course that is a different industry and this one has certain risk factors associated with it that might drive the price down. But, the industry is also experience explosive growth, which could drive the price up. Like others have said, it depends on the buyer and what they intend to do with the site.
You could also sell your current site, take everything you have learned, and start another site and be up to the same revenue in a year or less.
Yes 2.5 – 3x turnover are figures i’ve heard before too. But as you say, each industry is different. Some buyers might also insist that a) you come with the site for 1/2 years on an exclusive deal or b) you don’t compete directly for 1 – 2 years following the sale. But with web-exclusive businesses that’s often different and as you say it all comes down to value to the buyer.