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Reply To: how much is CAP worth?

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#713146
vladcizsol
Member
Quote:
In the past people have suggested a figure of around 18x monthly revenue might have been a reasonable number for portal pricing.

So if you’re making 10K per month then a figure of 150K to 200K was reasonable.

Do you think that it would be fair to say the the current legislative changes in the US, and uncertainty in Canada and Europe effectively make the whole gambling portal area too unstable for any reliable market?

The figures above are usually related to a brick and mortar type business with a verfiable record of income. Due to the nature of affiliate marketing this was difficult to quantify and was generally not stable unless you operated purely as a media seller and had contracts or insertion orders that made the monthly or quarterly revenues somewhat stable. In todays enviroment any previous numbers would be worthless and without merit for valuation of a property.

Now key factors are more likely related to search engine positioning of the portal, its monthly traffic and the demographics of the visiting audience. I have no idea HOW someone would place a value on a portal if it didnt include the affiliate accounts. It would basically come back to “Its worth what someone will pay”

Quote:
After all we’ve seen publicly quoted companies lose between 50% to 85% of their market value.

Do you have any reliable guides to pricing at the moment – from what you may have seen and heard on recent sales or site brokerage? I know that some people out there must have bought and sold.

Nope, there is no reliable formula that I am aware of and it doesnt seem possible that there even COULD be one. There just isnt enough data available to evaluate. The other problem is we are STILL in a state of flux with regards to payment processing, ewallets and banking. This potentially wont fully stablizie for up to 270 odd days.

Have sites been sold? Yes

Was there a RELIABLE formula used to establish their values? Nope, I dont believe there was.

What did people pay? I dont know each sale, but the figures I have heard have been extremely low (though thats MY perception not true market value)

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Are you prepared to share general details ?

I dont think many buyers and sellers will share exact details and if they did I think we would find the prices are all over the place and show no real pattern.