4 ms·

So a 1X or 2X of annual ad revenue is standard valuation?

• ericb 19y ago
  I think it's usually a 1x at the smaller scale. I would take a look here for comparables: http://www.sitepoint.com/marketplace/ http://www.sitepoint.com/marketplace/ Since the other party sought you out, don't feel the need to discount too much.
  • ericb 19y ago
    For folks doing simple net present value valuations, please keep in mind that small businesses and small websites are a different world. Most require work and promotion to maintain. Thankfully, IRobot, whose stock I own a few shares of, has never asked me to run an adwords campaign, pay their hosting bills or do their customer support. Selling a small business is often like selling a job. Take a look at the sitepoint marketplace at closed sales and see how many you see going for 10x multiples. In terms of selling, the value of any business is exactly what the market will pay.
• SwellJoe 19y ago
  The traditional rule of thumb for a starting point is 10x if there is any growth at all. Selling for 1x makes no sense, unless you have some liability concerns that you haven't mentioned--keep it for a year and get the 1x revenues, and then you're ahead. Unless it's taking more time than you'd like to spend on it, a 1x or 2x offer should be laughed out of the room.