Revenue Prices

[scriblesvurt]

Whats a fare system to work out a good price when selling domains that generate revenue?

Thanks,

Scribs.

 

[g0ldy]

Depending on the ammount of the revenue and if it is consistant!

 

[scriblesvurt]

Great thanks.

I was think how long do you take the revenue into account?

Thanks.

 

[Jeanco]

There's revenue and then potential revenue (like the possibility of it gfrowing in the future). If there's limited potential then you just use the current. If there's a decrease potential, then you take that into account too.

Its basically just negotiating but tis generally anywhere from 6 months to a year's revenue.

 

[jj2ii3344]

In the web hosting market, it is usually calculated by taking the monthly revenue and multiplying it by 12 to obtain the value of the firm.

 

[Jeanco]

aka - one year's revenue....

 

[jj2ii3344]

Yup! Thanks Ryan! I think website can be priced in a similiar way, but the price is also a function on its potential growth and etc as pointed out by Ryan. Ultimately, it is the price you feel comfortable selling at. I would personally draft up a contract to be signed by the new buyer if a deal is to completed, I have been burned by a company purchasing my web hosting firm a few months ago