3 ms·
Here is the problem with valuing a business like this... It's my business so I know that revenue has actually risen year-on-year since I set it up (and on just
by AlexMuir 12y ago
Here is the problem with valuing a business like this... It's my business so I know that revenue has actually risen year-on-year since I set it up (and on just looking is actually $9,000 a year) So for me, I know that I couldn't take less than $40k for it. Since I'd never earn anything like that return on that amount of money elsewhere, even assuming revenue sits static for 5 years.
On the other hand, who in their right mind would pay that with nothing but some Adsense numbers and Google Analytics to go on. So to answer your question "What do I expect to get for it?" Nothing - I don't actually expect anyone to pay what I'd sell it for. And so I'll probably keep it forever.
The only situations that I can see panning out are
a) someone buying it for a brand (unlikely)
b) an established player buying it for the traffic and SEO reasons (a good move IMO)
c) someone with plans to monetize and/or grow it in different ways
or d) a fund is established which buys up all these scrappy little sites, monetizes and maintains them, and earns a steady 20% return for its investors.
I'd actually be very interested in working on d) if anyone wants to get in touch.
- wcfields 12y agoOption D is exactly what InternetBrands is[1]. In short they own VBulletin, a bunch of niche forums (eg Fitfreaks, a Honda Fit forum), paid listing sites (Teen Summer Camp) and buy out "medium" sites that have a predictable revenue stream that requires almost no code updates. I interviewed there and it's pretty much an internet sweatshop, (read any Glassdoor review) and the sites run everything from LAMP to VB/Frontpage MS Access DB. They burn through employees at a quick clip and outsource everything to Romania and Mexico. [1] http://www.internetbrands.com http://www.internetbrands.com
- tempestn 12y agoWould you say CarsDirect is an exception to their standard practices? It seems like a reasonably high maintenance venture, but likely a profitable one, since they've captured a good chunk of the market.