Generally, I take the Average Monthly Profit from the last 6 months of the site, and multiple it by 25x – 40x (depending on the quality of the site). I actually go into a lot more detail on how I value a site in my latest case study: https://diggitymarketing.com/project-cashflow-nov-2020/

One point that really I still am unsure about is websites with growth. For example, let’s say a website earned on average $2k a month 2 years ago, $5k a month last year, and $10k/month for this year – how on earth does the website get valued?

You could go by, let’s say, x30 and have it valued at $300k. However, it’s clearly a growing website, doubling roughly each year. Taking that into account, could it not be worth $500k-$750k even?

This is the question that still confuses me. I completely understand a website that has made the same income for a long time. But, for those that are exponentially increasing in traffic and revenue, I don’t see a clear way of valuing them, especially if the growth is also quite passive (with minimal effort).

Interested to hear your thoughts.

I’ll go with 10.

Never sold a leadgen site, but good luck with it!

Charles

Of course. Please apply at Leadspring.org.

But may be running out of resources to do that. Was hoping that you can consider me into Leadspring. Hehe.

Dan

Thanks, Gregory. Really, thank you.

What we find is that many of our buyers that buy sites built off PBNs, are also often buying sites that accrued natural links in the process.

While the PBNs might had been the initial way the sites ranked, once they were ranked and started getting traffic, they were shared and gained natural links from other websites as well.

This helps stabilize a lot of the sites to maintain their rankings. Of course, each business is different, so any buyer should do proper due diligence before investing in a site to make sure they are comfortable with any risks.

Real estate is an interesting game. The growth factor with online businesses I say is much higher, but leveraging virtual real estate for physical real estate can be a smart move. We have several sellers on our marketplace that buy their properties outright without a mortgage.

Though if you are buying multiple pieces of property and you sell a site for $500k, it could make sense to leverage mortgages as long as you structure the deal right. Then use the rent from each of those properties to feed into one mortgage until all of them are gone.

Tons of ways to skin a cat as they say though 🙂

Yeah Brett! Look forward to seeing one of yours site on our marketplace. Don’t listen to Matt, your language is perfect haha 🙂

We look forward to it when you get the chance Bhim!

Hey Samuel!

For an eCommerce or dropshipping site (or any site with more moving pieces) we’re really looking for at least $500 per month in net profit. For AdSense or Amazon affiliate sites we’ll go a bit lower – $300 per month or so. Hope that helps!

Great input about the real estate.

Question: do you always disclose the fact that you are using a PBN?
Answer: I’m always 100% honest and upfront when selling a site and in general in life.

Nice. I never thought about that. Thanks for your contribution.

Haha. I love it.

I’ve bought quite a few myself and have never experienced a drop in revenue.

Cheers

but yeah there’s a bit of a risk.

Question: do you always disclose the fact that you are using a PBN?
I’ve heard stories of people selling a site with a hidden PBN then remove all the PBN links once the
sale is finished.

I’m bookmarking this page. Will refer when I will think of flipping the site.

^^^ See, this is why I always knew you are Captain America.

One thing I might add toward the value side of things that very few people think about is an image database for the buyer.

One of my sites I flipped was an ‘exotic’ pets niche and it’s kind of difficult to get photos. So right from the beginning of the project I was taking pictures myself, collecting free to use pictures and putting the whole lot into a giant folder.

When I sold the site I have 0 doubt that having > 2,000 images that they could use for the sites purposes helped immensely. Just thought it’s worth mentioning since it’s a small value add that can help increase the value or success of your flip.

Pain free process. I highly recommend it.

Language, Brett. Language. 🙂