how much to offer

redshift · 01-07-2007, 07:48 AM

I have a domain name i would like to acquire a site that is has been online since 2001, a business with lots of traffic, the woman is my friend and is closing up shop, we both cater to the same niche market so i have some interest in it

alexa says she has a traffic rank of 2,943,371
it also says she has only 7 sites linking in i know for a fact its way more
I link to her and dont see my site there

so to be fair how do you go about making an offer to a friend knowing you can get lots more for the site then you can offer to buy

thanks in advance will rep add responses

tjoseph · 01-07-2007, 10:52 AM

Does her business generate any income? And if so, how much? I am new to domaining, but I have bought and sold businesses and there are a lot of ways to value a business. 1 X annual sales, 3 X annual net profit, etc. But these are just rough figures and need to be adjusted for the type of business and also need to account for expected customer retention, any capital equipment or property that is being sold with the business and other factors. The fact that you already know the business she is in is important. She may have a hard time finding another buyer with your qualifications or she would have to train the new buyer.

I do not know your friend or what kind of relationship you have with her. If you can only afford to give her a lowball offer and she is your friend, I would be honest with her about it. Tell her what you think it is worth if she wants to sell it herself and what you can afford to pay her. Maybe she will still want you to have it.

Tom

redshift · 01-07-2007, 07:42 PM

thanks for the reply, im not buying her business though, just her domain name
she wanted an answer fast so i suggested if i can turn around and sell it for much more than what i gave her for it we'd work something out

01-07-2007, 07:48 AM	THREAD STARTER #1 (permalink)
redshift NamePros Regular Join Date: Dec 2006 Location: US Posts: 329	how much to offer I have a domain name i would like to acquire a site that is has been online since 2001, a business with lots of traffic, the woman is my friend and is closing up shop, we both cater to the same niche market so i have some interest in it alexa says she has a traffic rank of 2,943,371 it also says she has only 7 sites linking in i know for a fact its way more I link to her and dont see my site there so to be fair how do you go about making an offer to a friend knowing you can get lots more for the site then you can offer to buy thanks in advance will rep add responses

01-07-2007, 10:52 AM	#2 (permalink)
tjoseph NamePros Member Join Date: Jan 2007 Location: Southern California Posts: 183	Does her business generate any income? And if so, how much? I am new to domaining, but I have bought and sold businesses and there are a lot of ways to value a business. 1 X annual sales, 3 X annual net profit, etc. But these are just rough figures and need to be adjusted for the type of business and also need to account for expected customer retention, any capital equipment or property that is being sold with the business and other factors. The fact that you already know the business she is in is important. She may have a hard time finding another buyer with your qualifications or she would have to train the new buyer. I do not know your friend or what kind of relationship you have with her. If you can only afford to give her a lowball offer and she is your friend, I would be honest with her about it. Tell her what you think it is worth if she wants to sell it herself and what you can afford to pay her. Maybe she will still want you to have it. Tom

01-07-2007, 07:42 PM	THREAD STARTER #3 (permalink)
redshift NamePros Regular Join Date: Dec 2006 Location: US Posts: 329	thanks for the reply, im not buying her business though, just her domain name she wanted an answer fast so i suggested if i can turn around and sell it for much more than what i gave her for it we'd work something out

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