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Hard to say without seeing the site, it depends on what your monthly revenue is and if all the articles are unique and what positions the site has in the search engines.
To be honest I’ve never bothered with search engines, I’ve no idea where it’s ranked. – I figure that the casinos have large teams of full time professionals working on seo and there’s little chance of a lone portal owner being able to compete. I get a fair amount from google and its bots are forever trawling through my forum, I guess it realises that all the articles in the forum are indeed unique.
I’ve always used ppc traffic, and until the last few months or so this provided a very healthy profit margin but now it is actually negative. With no ppc traffic it would still be a profitable site and provide an ample living wage I imagine and anyone with even moderate experience with seo or even other ad buying methods such as email lists etc could very easily make a large profit – but it’s too much for me to do on my own.
Obviously the existing affiliate accounts wouldn’t be included in the sale.
Seems to me it would suit an existing casino brand who want to get an established database of players and turn the site towards promoting their brand exclusively.
Quote:I’ve always used ppc traffic, and until the last few months or so this provided a very healthy profit margin but now it is actually negative.So your not turning a profit at the moment, that will effect the sale price greatly, basically you’ll just get what your site is worth in terms of content and the forum and how active the forum is.
Well – it is profitable, just not with ppc, on its own it still turns a profit. The forum gets about 5 new users a day and an average of 20 posts.
It is worth whatever some one will pay for it. If you’re serious about selling it, I would post the site with all the traffic details, SEO rankings and revenue per month details and post it in various affiliate forums. Take the highest bidder.
Let some one else decide how much it’s worth and if it’s not high enough for you then keep it until you find some one that will pay what you want.
Regards,
Focal wrote:It is worth whatever some one will pay for it. If you’re serious about selling it, I would post the site with all the traffic details, SEO rankings and revenue per month details and post it in various affiliate forums. Take the highest bidder.Let some one else decide how much it’s worth and if it’s not high enough for you then keep it until you find some one that will pay what you want.
Regards,
Mark
http://www.focalclick.comAgreed.
At the end of the day, the profit will be what likely determines the value in the main. There are other factors, but largely these are factors used to determine whether the site is likely to maintain/increase its revenue. Blacklists, SERPS, content, traffic etc etc.
With no revenue, the value can only be a finger-in-the-air “best offer gets it” deal. But with revenue there are ways of calculating growth and potential much more accurately. It also reflects on the quality of traffic – after all, 1,000 visitors looking for a good Microgaming casino are probably far more valuable than 100,000 visitors looking for a free Flash game to play.
I recently got approached to sell OGGS so I did a 12 month revenue spreadsheet and forward calculations for 3 years to see what it was worth to me, then presented a buy-out figure based on what I’d let it go for.
Cheers
Simmo!
Good points – taken, thanks. I was thinking maybe there was at least some kind of a price range which would apply to a site as described, no matter how wide. Any ideas?
I agree with Simmo. You are selling a business, so you must look at it from that viewpoint. People selling businesses aggregate their income from the past X amount of months, usually 12 and then forecast their future income going forward. 3 years is a general rule of thumb from what I understand. With that data, you can see how much your site..
1. Has been worth
2. Will be worth going forwardI really have no idea how much your site is worth, and I am not sure there is a general rule of thumb for how much your site is worth. I guess some one else can make a stab at what it is worth…
Best,
Valuation is subjective. Usually buyers will value on a basis of prospective earnings at some multiple. This is then checked against comparable acquisition multiples and discounted cash flow analysis to triangulate a value. Where you use debt as part of the valuation methodology you can also use a leveraged valuation basis to compute value.
In your case since you are removing the affiliate accounts with a track record (which a buyer could evaluate the average worth of a player and work out what the residual player worth is prospectively) the only valuation basis that makes sense is a multiple per user on the sites. The next debate you will have then is how you define user and whether it is an active or an inactive user.
There are plenty of sites who would, if the site were dressed up for sale, consider buying the traffic but the best bet would be to get someone who knows a bit about valuation and presentation to do a teaser and then work on your behalf to pitch to the bus development directors of some of the more acquisitive listed groups that could monetize the community effectively. This would be a smart way of going about it! Don’t open your kimono publicly whatever you do!!!
I have a bunch of experience here so pm me if you have questions.
cheers
Devendra
Besides affiliate forums, you can also post it at linkworth.com and sedo.com… any others come to mind?
