Forum Moderators: martinibuster

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Buying AdSense Sites

Is Twich Annual Revenu a Fair Price?

         

web4monkeys

7:11 am on Oct 17, 2006 (gmt 0)

10+ Year Member



I'm looking for advice about buying an established AdSense site with an established domain name.

I plan to offer 2x the annual income. Is it a reasonable offer in your opinion?

Thanks very much.

[edited by: martinibuster at 11:09 pm (utc) on Oct. 25, 2006]
[edit reason] See TOS [/edit]

trannack

7:22 am on Oct 17, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



My advice would be build your own. A site is only as good as the person that developes, and redevelopes it. I think you need to know your site inside out - what has worked in the past, what is working now etc, etc. Just because a site with adsense is making money now - does not necessarily equate to making money tomorrow. A quality site with fresh content that is regularly updated, IMHO, is the best direction to go. I do not believe there is a get rich quick solution. Ask yourself, if a site is making good adsense money - why are they selling it?

kazisdaman2

9:27 am on Oct 17, 2006 (gmt 0)

10+ Year Member



I totally agree with the above concept.

Just because the site made profit for someone else does not mean it'd make moeny for you too. The others could have had specality knowledge in that area, and when you join you may not be able to add content as easily as the orignal creator. You also want to figure out why they are selling.

For Example, I purchased an engine animation website, dealing especially with rotary engines. A topic most people don't know about, thus they goto the site and learn. I happened to work at a rotary engine shop, and already knew the stuff, so it made sense to join. While working at the shop I could take picture of engine parts no one have seen, learn more from the engine builders, etc. This is just one example.

cool1g

7:39 pm on Oct 18, 2006 (gmt 0)

10+ Year Member



i buy sites with adsense income all the time. I personally wouldn't pay more than 12 months income unless the site had been around for several years with stable income. make sure you do you due dilligence on the site in question.

[edited by: martinibuster at 11:10 pm (utc) on Oct. 25, 2006]
[edit reason] Removed commercial promotion. [/edit]

david_uk

9:12 pm on Oct 18, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



If someone is selling an adsense goldmine, you have to ask yourself why. If the site is earning money, why would they sell it?

ceweman

9:42 am on Oct 22, 2006 (gmt 0)

10+ Year Member



I dont know the reason why to sell my websites - I am new adsense publisher, but I have +40% monthly growth of visites/clicks/money. Each day my websites gains new top statistics.

If I would need to sell my website, I will ask for at least 60 x maximal monthly income -

ashii

10:15 am on Oct 22, 2006 (gmt 0)

10+ Year Member




If someone is selling an adsense goldmine, you have to ask yourself why. If the site is earning money, why would they sell it?

Managing websites also need lot of your time (maintaince,server issues etc...) so many people are happy to sell them if they got good money becuase they can always build new sites and sell them again.

Other concept is buy Good sites(which are not making lot of money to original owner) cheaply,optimised them and sell for 10 or 100 times of cost

Bddmed

10:22 am on Oct 22, 2006 (gmt 0)

10+ Year Member



If I would need to sell my website, I will ask for at least 60 x maximal monthly income -

That just means you won't be ever selling a site then.

Yeah I know the youtube sale proves me wrong.

quepao

5:08 am on Oct 25, 2006 (gmt 0)

10+ Year Member



i know selling a site for 60x max. monthly income would work.. if its a stable online for few years and positioned on this specific keyword on 1st position on google/yahoo..

..but why 2 sell it than when it's worthed so much?

:)

Alexstar

5:46 am on Oct 25, 2006 (gmt 0)

10+ Year Member



Monthly profit times 120 months could be my sale price.

trannack

7:35 am on Oct 25, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I would veryu carefully read the TOS in adsense. There was another update yesterday - and when I read them, it quite definately says that the adverts are non-transferable. If one customer has a site with good ROI off the ads, another person, with new adverts will not necessarily have the same results. Very grey area.

cool1g

9:19 pm on Oct 25, 2006 (gmt 0)

10+ Year Member



buying a site on 60 or 120x monthly earnings is just stupid. assuming flat NOI growth (important assumption), your rate of return on a 5-year payback is not much better than just putting the same $ in a S&P 500 mutual fund. on a 10-year payback, you'd make more $ by letting it sit in the mutual fund. for an operating business, any good businessman would want a much better ROI.

i have spent $xx,#*$! in the past 12 months on sites, none of which i paid over 12 months for. with some ad tweaking after purchase, i've been able to pay some sites off in 4 months.

i have invested in a 2 brick-and-mortar businesses here in LA and they are returning 15% and 25% annually. for zero work but high risk, that rate of return is appropriate.

i could see a great generic domain going for 5+ years income, but not much else

sonny

10:41 pm on Oct 25, 2006 (gmt 0)

10+ Year Member



Websites sell every day for 10-12x monthly earnings on the other forums. People rarely pay more than that. Too risky to wait more than 12 months before you get your money back, let alone any profit.
Why do people sell their site?
So they can get a lump sum 10-12x monthly earnings. This can be quite appealing.

potentialgeek

9:01 am on Oct 26, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



What is the standard business valuation in the real world? There must be a standard, e.g., x times monthly/annual profit, which is considered before all business sales?

I love the Adsense scheme. When you can make investments of time, effort, etc., i.e., new web pages with rich content, then see income off that become steady and continue for years, with checks in the mail each month, it's really tempting not to sell! :/ It's a really good "pension."

$3/day for one site (or page) x 365 days/year = $1,095

About a week ago, I spent one day on an old site that I noticed got top SERP for a fairly popular two-word phrase and added four Adsense ads total on the site. Now it gets $2-5/day.

I don't plan on selling any of my sites. It's too much easy money with minimal maintenance. If you can buy someone else's site and it requires almost no maintenance, it could be a good deal for a steady income.

p/g

derekwong28

2:25 pm on Oct 26, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



24 months is too much to offer unless it is a very established site with lots of recurrent visitors e.g. a large forum or community site. In practice, most sites sell for around 6-18 months revenue, the average being 10 months. Having bought over 100 sites, my experience is that sites which depend exclusively on adsense for revenue are extremely volatile. I have had two sites whose traffic completely collapsed after a Google update. Although the price I paid for was less than 12 months' revenue, it is very unlikely that I will ever get my money back.