I'm sure this has been asked a lot of times but I was wondering how to determine the value of a website with the selling willing to help you out for 2 hours a week for 6 months to a 1 year and He's also willing to help with SEO. the site i'm looking to purchase does about $20,000 a year in sales and about half of that is profit. The gets around 50 hits a day and is more geared towards his local market but being it's 100% online business I don't think the location will be a big issue. The seller is willing to help me out and also if any customers call him he will take the order and call me and have me complete the order and then I will contact them and introduce myself so it will be a gradual change. I've read 10 times monthly revenue is the average price, of course I worry about lost revenue when the site changes hands. If I offer 10x monthly income and receive this help is that a fair price on both ends? I'm not looking to beat him up over the price because I would like his help.. Basically whats the value of his support..
How long has this site been doing 20k a year? How much is his help worth to you?
If I were to provide support for something like this, which I assume will include phone support, I would probably estimate about $30/hr so 6 months times 4 weeks a month time 2 hours a week comes to about 24 hours worth of support.
If the domain is decent and the site has been doing 20k a month consistently for 2 years or more then I would offer him about 12-15 x monthly revenue. The 10x factor I believe is for relatively newer sites, ie < 1 year old.
Thank you for the quick response, the site has been up and running for 5 years. but last year he only did around $9,000 and the same the year before. This year he picked up a new customer. I just want to find out if this one customer is giving him all that big jump in sales because that wouldn't be a great thing, I'd rather have more smaller customers. I think the site has great potential and he was only putting a few hours in a week and not really advertising.
Based on the fact that the past 2 years has been 9k a year I wouldn't pay more than 12k for the site.
Thanks and I also found out that there is only about 200 visits a month..
I was wondering how to determine the value of a website
This article I put together for Sitepoint may help.
the selling willing to help you out for 2 hours a week for 6 months to a 1 year and He's also willing to help with SEO
Avoid. Avoid. Avoid. Unless you and he are in the same country, you have a watertight written contract and you are willing to sue him for non-performance, do not rely on his assurances or "guarantees".
As a first time buyer you may be exploring and researching all the different ways of buying a property. I was buy my home in Maryland. I have to pay the all amount of this house. Last month I was pay the last mortgage. I am very happy because I have own home.
200 visits a month? thats not a good number i think