How to sell a porn company?

[SpunkFilms]

I'm just tossing some ideas around at the moment and was wondering, how the heck does one go about selling a porn company? My company consists of one of the gay global foot fetish brands, including a paysite, merchandise, over 400 exclusive videos. As well as other brands and paysites.

What (realistic) value do I put on my company? Any help and advice would be great and much appreciated!

[Zuzana Designs]

I would talk to Jay or Jimmy from Broker.xxx | Buy & Sell The Sexiest Businesses On The Web

[Roald]

Drop me a line at [email protected] with the details and let's talk.

[Major (Tom)]

Originally Posted by SpunkFilms

I'm just tossing some ideas around at the moment and was wondering, how the heck does one go about selling a porn company? My company consists of one of the gay global foot fetish brands, including a paysite, merchandise, over 400 exclusive videos. As well as other brands and paysites.

What (realistic) value do I put on my company? Any help and advice would be great and much appreciated!

Well, there is what it’s worth to you, and what people are willing to pay. Never let anyone make you hold the note. Cash. These payment plans scams are just that.
I’d personally not take less than a years gross. Maybe 18 months gross profit. Don’t give it away unless you want it gone.
Duke

[paper_louis]

I'd be glad to help you, hit me up [email protected]

This goes to anyone else with the same thought feel free to contact me!

[FapDude]

Real price is the amount of money given in payment for something. If you want, i can help you with a price quote. I have experience in selling/buying adult businesses.

[Erik_B]

Likewise we (StunnerMedia) might be interested at looking at this with you.

Alternatively, we also offer great partnership solutions where we can handle everything from Paysite/Servers/Developpement/Design/Affiliates/Marketing/Hosting/Billing/Content licensing etc etc, inevitably we should be able to increase your revenues and allowing you to focus on the production side.

We can discuss in further detail: erik @ stunnermedia.com

-

[RyuLion]

Looks like you have enough help offers already. Good luck!

[Wizzo]

Originally Posted by Zuzana Designs

I would talk to Jay or Jimmy from Broker.xxx | Buy & Sell The Sexiest Businesses On The Web

Feel free to email me at jimmy at broker.xxx and we will be glad to help!

[PorcoRosso]

It's a super tough topic.
It will always depend on the value on the business. Is there a specific valuable IP? Valuable tech? Valuable team? Synergies with the company that wants to buy? Depending on these values, the price will vary.

But if we're talking purely about money/revenues, there are some basic KPI in the mainstream industry: price is your yearly gross margin X 6 or 10.
Meaning that if you're grossing 1 000 000$ revenues, with a 100 000$ gross margin, then your business can be valued between 600 000 and 1 000 000$.

These are classic basic values for digital startups.

Now given how sulfurous is our industry, there's a lot less buyers... and that diminishes the value.
So expecting +/- 3 X your yearly gross margin is reasonnable. But again, that depends on all the potential values mentionned above.

Last parameter: how urgent is it for you to sell? Like in all deals, if you're in a hurry for cash and buyers smell it, you won't get the best deal .

Of course everything stated above is just from my little experience and knowledge, I don't pretend it's pure truth, just trying to help

[habibjr]

Originally Posted by DukeSkywalker

Well, there is what it’s worth to you, and what people are willing to pay. Never let anyone make you hold the note. Cash. These payment plans scams are just that.
I’d personally not take less than a years gross. Maybe 18 months gross profit. Don’t give it away unless you want it gone.
Duke

18 months gross seems to little. maybe 18 months total revenue.

[Major (Tom)]

Originally Posted by habibjr

18 months gross seems to little. maybe 18 months total revenue.

That’s what i meant

[movieguy]

Originally Posted by SpunkFilms

I'm just tossing some ideas around at the moment and was wondering, how the heck does one go about selling a porn company? My company consists of one of the gay global foot fetish brands, including a paysite, merchandise, over 400 exclusive videos. As well as other brands and paysites.

What (realistic) value do I put on my company? Any help and advice would be great and much appreciated!

Don't talk to Jay or Jimmy at Broker. You don't need a middle man.

Don't entertain offers here. Go to Wickedfire.com or any of the gay boards. Webmasters who run gay sites, will appreciate the value of your offering and will give you a fair price. I was present when Shap sold his company to Mindgeek, and they severely undervalued the gay side of Shap's business, simply because that was not their strength and they wouldn't know how to properly nurture it.

Don't sell for less than 5X yearly net profit, but aim for 10X. In this ultra low interest rate environment, even junk bonds are getting well less than 5%. A business that can return 10% is phenomenal.

Do have all your figures ready to show prospective buyers, and an NDA for them to sign (if you care about your numbers leaking out)

[Diomed]

Originally Posted by movieguy

Don't talk to Jay or Jimmy at Broker. You don't need a middle man.

Don't entertain offers here. Go to Wickedfire.com or any of the gay boards. Webmasters who run gay sites, will appreciate the value of your offering and will give you a fair price. I was present when Shap sold his company to Mindgeek, and they severely undervalued the gay side of Shap's business, simply because that was not their strength and they wouldn't know how to properly nurture it.

Don't sell for less than 5X yearly net profit, but aim for 10X. In this ultra low interest rate environment, even junk bonds are getting well less than 5%. A business that can return 10% is phenomenal.

Do have all your figures ready to show prospective buyers, and an NDA for them to sign (if you care about your numbers leaking out)

Best advice yet

[Major (Tom)]

Originally Posted by Diomed

Best advice yet

Agreed. Thumbs up

[Spunky]

Leave fliers on the windshilds at Walmart

[AmeliaG]

Originally Posted by movieguy

Don't talk to Jay or Jimmy at Broker. You don't need a middle man.

Don't entertain offers here. Go to Wickedfire.com or any of the gay boards. Webmasters who run gay sites, will appreciate the value of your offering and will give you a fair price. I was present when Shap sold his company to Mindgeek, and they severely undervalued the gay side of Shap's business, simply because that was not their strength and they wouldn't know how to properly nurture it.

Don't sell for less than 5X yearly net profit, but aim for 10X. In this ultra low interest rate environment, even junk bonds are getting well less than 5%. A business that can return 10% is phenomenal.

Do have all your figures ready to show prospective buyers, and an NDA for them to sign (if you care about your numbers leaking out)

I totally agree that it makes sense to target who you sell your sites to, same as you would target surfers.

In pitching, if you want a high multiple, it makes sense to be able to answer why 10 years of profit would actually be worthwhile to the buyer.

Many people who can buy will offer a multiple based on how long it would take them to knock off what you do.

[OldJeff]

Originally Posted by Wizzo

Feel free to email me at jimmy at broker.xxx and we will be glad to help!

Hit me up Jimmy

[OldJeff]

Make's me laugh how people value their porn sites like they are a public company or something. This is the most unstable business on the planet, billing rules constantly changing, always under scrutiny for possible closure by government, yet somehow people think they can get 100 grand for something that makes 2 grand a month, when it takes a grand to build something and 10 grand in traffic investment to get the same return.

[pornguy]

Originally Posted by movieguy

Don't talk to Jay or Jimmy at Broker. You don't need a middle man.

Don't entertain offers here. Go to Wickedfire.com or any of the gay boards. Webmasters who run gay sites, will appreciate the value of your offering and will give you a fair price. I was present when Shap sold his company to Mindgeek, and they severely undervalued the gay side of Shap's business, simply because that was not their strength and they wouldn't know how to properly nurture it.

Don't sell for less than 5X yearly net profit, but aim for 10X. In this ultra low interest rate environment, even junk bonds are getting well less than 5%. A business that can return 10% is phenomenal.

Do have all your figures ready to show prospective buyers, and an NDA for them to sign (if you care about your numbers leaking out)

This is good advice.

Also keep in mind that some of your competitors will just want to see what you have so that they can up their own game.

It happened to me. SO be careful what you do and who you talk with. A prospective buyer is going to ask you to Show them the money. Before you do, make them show you their ability to buy.

[Brad Mitchell]

Talk to Jay at Broker.XXX

Brad

[Roald]

Originally Posted by OldJeff

Make's me laugh how people value their porn sites like they are a public company or something. This is the most unstable business on the planet, billing rules constantly changing, always under scrutiny for possible closure by government, yet somehow people think they can get 100 grand for something that makes 2 grand a month, when it takes a grand to build something and 10 grand in traffic investment to get the same return.

Amen.

....

[CaptainHowdy]

Originally Posted by OldJeff

Make's me laugh how people value their porn sites like they are a public company or something. This is the most unstable business on the planet, billing rules constantly changing, always under scrutiny for possible closure by government, yet somehow people think they can get 100 grand for something that makes 2 grand a month, when it takes a grand to build something and 10 grand in traffic investment to get the same return.

Harsh but true . . .

[Major (Tom)]

It’s worth at least what it makes, maybe more. Just don’t sell if you don’t get what you want for it. Don’t look to buy without understanding the risks. 🤷🏻

[movieguy]

Originally Posted by Roald

Amen.

....

Haven't you been employed at payserve for nearly 20 years? That seems incredibly stable!

[AmeliaG]

Originally Posted by OldJeff

Make's me laugh how people value their porn sites like they are a public company or something. This is the most unstable business on the planet, billing rules constantly changing, always under scrutiny for possible closure by government, yet somehow people think they can get 100 grand for something that makes 2 grand a month, when it takes a grand to build something and 10 grand in traffic investment to get the same return.

Yep. This.

There are approximately a zillion government programs which lead to up-valuation of public companies. Even student loans are structured to allow universities to play the market with their endowments. It's a completely different math problem.

[Roald]

Originally Posted by movieguy

Haven't you been employed at payserve for nearly 20 years? That seems incredibly stable!

Nah, I was MD at FreeOnes for 8 years and a partner now at Payserve since 2013

Time does fly though.

[adultmobile]

Originally Posted by Roald

Drop me a line at [email protected] with the details, and let's talk.

Testimonial: I sold them my cam sites in 2016, went smooth and fast - Dutch way (I am not Dutch but I appreciate people telling what they think whatever ugly). I relied on a testimonial myself, they had purchased a cam site of a friend a year before and he said all ok. Their company is around since 1970s, acquired a friend's cam site without issue, so I rated this a low risk transaction.

That's unlikely a few other fake purchasers and real time wasters years before. Not making names but had someone contact and promise to buy for decent amount. They were big enough at the time. They asked me to send sales and other inside data for due diligence and I wasted also money with my laywer to edit a (unnecessarily complex) sale contract - hey we're in Adult bro, I give this you pay... Then, they found excuses for no deal. They was just fishing for information.

Previously, pre-2010, I blame myself for refusing a few offers that were real and way higher... there was still serious money in adult, I could sell empty 2 words domain names for $10k each, so imagine real cam sites. But these times made you greedy and hopeful to make more money on your own than selling, so didn't sell lol.

[j3rkules]

Originally Posted by adultmobile

Testimonial: I sold them my cam sites in 2016, went smooth and fast - Dutch way (I am not Dutch but I appreciate people telling what they think whatever ugly). I relied on a testimonial myself, they had purchased a cam site of a friend a year before and he said all ok. Their company is around since 1970s, acquired a friend's cam site without issue, so I rated this a low risk transaction.

That's unlikely a few other fake purchasers and real time wasters years before. Not making names but had someone contact and promise to buy for decent amount. They were big enough at the time. They asked me to send sales and other inside data for due diligence and I wasted also money with my laywer to edit a (unnecessarily complex) sale contract - hey we're in Adult bro, I give this you pay... Then, they found excuses for no deal. They was just fishing for information.

Previously, pre-2010, I blame myself for refusing a few offers that were real and way higher... there was still serious money in adult, I could sell empty 2 words domain names for $10k each, so imagine real cam sites. But these times made you greedy and hopeful to make more money on your own than selling, so didn't sell lol.

Good to see you around. Did you leave the adult completely after the sellout?

[The Porn Nerd]

If a site is making $X a year then try to get double that amount. If not, then bare minimum 1 year. This depends on the site, how optimized it is for the seller, etc.

[adultmobile]

Originally Posted by j3rkules

Good to see you around. Did you leave the adult completely after the sellout?

Yes, else I would have not sold. I always made other stuff anyway. Wait, do you think there would be a reason for me to still be in adult?

[MakeMeGrrrrowl]

Originally Posted by movieguy

Don't talk to Jay or Jimmy at Broker. You don't need a middle man.

Don't entertain offers here. Go to Wickedfire.com or any of the gay boards. Webmasters who run gay sites, will appreciate the value of your offering and will give you a fair price. I was present when Shap sold his company to Mindgeek, and they severely undervalued the gay side of Shap's business, simply because that was not their strength and they wouldn't know how to properly nurture it.

Don't sell for less than 5X yearly net profit, but aim for 10X. In this ultra low interest rate environment, even junk bonds are getting well less than 5%. A business that can return 10% is phenomenal.

Do have all your figures ready to show prospective buyers, and an NDA for them to sign (if you care about your numbers leaking out)

This was excellent advice! Go with it.

[baddog]

Originally Posted by habibjr

18 months gross seems to little. maybe 18 months total revenue.

Gross is total; net is profit

[baddog]

Originally Posted by movieguy

Don't talk to Jay or Jimmy at Broker. You don't need a middle man.

Don't entertain offers here. Go to Wickedfire.com or any of the gay boards. Webmasters who run gay sites, will appreciate the value of your offering and will give you a fair price. I was present when Shap sold his company to Mindgeek, and they severely undervalued the gay side of Shap's business, simply because that was not their strength and they wouldn't know how to properly nurture it.

Don't sell for less than 5X yearly net profit, but aim for 10X. In this ultra low interest rate environment, even junk bonds are getting well less than 5%. A business that can return 10% is phenomenal.

Do have all your figures ready to show prospective buyers, and an NDA for them to sign (if you care about your numbers leaking out)

Totally unrealistic expectations.

The reason people hire people like Jimmy or me is primarily for our contacts.

If the op had them, he wouldn't be asking here.

[3rdshiftvideo]

We need Shap to chime in here....paging shap?

[AdultB2B]

Email sent Spunky.

By the way, based on your trends at 18 months profit you could be leaving a lot of money on the table.

It could be a lot more if you're growing.

Bruce

[celandina]

All of you guys must be really desperate for attention. The OP an assehole he is, posted one stupid post and you all for three months are killing yourself with an advice. Why ? Three months later he did not come back ! Stop this nonsense

[FUCK J0EL]

So many answers and advices in this thread, most I won't even comment !

We have bought many paysites over the last years and it's aways in the same ballpark in terms of number of times for revenues or profits.

This type of post is what I miss talking face to face in trade shows !

[baddog]

Originally Posted by celandina

All of you guys must be really desperate for attention. The OP an assehole he is, posted one stupid post and you all for three months are killing yourself with an advice. Why ? Three months later he did not come back ! Stop this nonsense

I am guessing math isn't your forte.

[Nathan]

A „standard“ porn network of sites is worth its organic traffic and its content. Meaning it’s cost of reproduction. The value could be anything if you look at revenue/profit. It is irrelevant for most experienced buyers except for negotiation tactic if the seller does not understand what they have to sell.

[Mr Pheer]

All pornsites are worth $40. But I'm in a good mood today, I'll give you $45. I mean it's probably just going to sit here on the shelf taking up room anyway, but what the hell.

[fuzebox]

Originally Posted by Nathan

A „standard“ porn network of sites is worth its organic traffic and its content. Meaning it’s cost of reproduction. The value could be anything if you look at revenue/profit. It is irrelevant for most experienced buyers except for negotiation tactic if the seller does not understand what they have to sell.

What do you know about buying porn companies?

[CaptainHowdy]

Sold ? ? ? ?

[trevesty]

Originally Posted by movieguy

Don't talk to Jay or Jimmy at Broker. You don't need a middle man.

Don't entertain offers here. Go to Wickedfire.com or any of the gay boards. Webmasters who run gay sites, will appreciate the value of your offering and will give you a fair price. I was present when Shap sold his company to Mindgeek, and they severely undervalued the gay side of Shap's business, simply because that was not their strength and they wouldn't know how to properly nurture it.

Don't sell for less than 5X yearly net profit, but aim for 10X. In this ultra low interest rate environment, even junk bonds are getting well less than 5%. A business that can return 10% is phenomenal.

Do have all your figures ready to show prospective buyers, and an NDA for them to sign (if you care about your numbers leaking out)

Agreed with the above.

[Nathan]

Originally Posted by fuzebox

What do you know about buying porn companies?

Yeah, true.. haha

[celandina]

Originally Posted by baddog

I am guessing math isn't your forte.

Call me a liar over of couple of weeks or so. My point is still the same.

[baddog]

Originally Posted by celandina

Call me a liar over of couple of weeks or so. My point is still the same.

A liar? Pretty sure a math error isn't a lie.