Pokerstrategy was long established and a very profitable enterprise.
It sold for €38m … and it’s annual profits were about €19m.
So it only sold for 2x annual profits. That’s low compared to most industries.
I am surprised at the low value, as bog standard low quality affiliate sites are selling in the 1 to 1.5x annual profit range, and they have a lot of risk attached with no brand and almost total dependence on Search engines for traffic.
In my mind PokerStrategy had enough of it’s own brand value to negotiate a price premium but didn’t manage it. That puts a definitive market ceiling on affiliate site values I think.
Basically, I would not sell my sites for 2x annual earnings … how about you?
:huh2: