A baseline, if you have predictable revenues, is the Net Present Value of those revenues. Basically you treat your business as a machine that produces money on

A baseline, if you have predictable revenues, is the Net Present Value of those revenues. Basically you treat your business as a machine that produces money on a schedule, like an annuity. http://en.wikipedia.org/wiki/Net_present_value http://en.wikipedia.org/wiki/Net_present_value Of course, you'll need to adjust for (1) risk and (2) growth. If your buyer has better ways of utilizing your website in their business than your ad revenues, that can increase the value of your site to them. For example, if your buyer is a spammer himself and wants to use 10minutemail.com to deceive people and harvest the addresses of people who go to great lengths to avoid spam, and those addresses are worth $1 each to him, then you should include that "revenue" stream in calculating your site's present value. On the other hand, things could get worse for your business, and any risks will be reflected in the price. Some risks are very hard to price, which is why it's much harder to sell a company that e.g. looks like it's going to get sued. If you're not an experienced negotiator, be careful not to sell yourself short. If you have to throw out the first number, you want it to be as high as it can possibly be without causing the buyer to hang up immediately. Good luck!