Considering Selling up - How to Price A Paysite ?

[Shark]

Hey Guys,

For the past couple of years I have been busy in other offline biz's and have let my paysites slide.

I have more than 10 paysites. Member numbers now are getting quite low and I don't have any time to put into rebuilding this biz.

I am wondering now whether to sell up or just milk the dollars until it dies and switch it off.

I think I read once before that a general rule of thumb was to multiply the monthly sales by x amount of months.

Anyone that's experienced in buying or selling paysites care to offer an opinion on how to gauge the selling value of an adult paysite ?

Thanks
Shark

[Barefootsies]

Monthly revenue - expenses x 9-12 months = asking price

[garce]

Originally Posted by Shark

Hey Guys,

I think I read once before that a general rule of thumb was to multiply the monthly sales by x amount of months.

Thanks
Shark

I don't think you're going to like the "x" amount of months that a lot people are willing to pay for now.

I've tried selling off a few sites that I can no longer be bothered with and three to six months income is pretty well the best offer I've received - a LOT more three month than six month offers. Not really worth it to me to sell in that case.

Your results should be better if you have a nice database of paying members, but these are low-ball times.

Best of luck to you.

[heymatty]

I've bought quite a few over the years and I'm really looking for 12 months net or less.

In most cases if you don't need the cash today, letting it run into the ground is going to make you more money total.

[NetHorse]

I don't think there is a generic calculation. If your site is built of non-exclusive content and each month the member base is dwindling then it would be hard to ask 9-12 months of your current revenue.

However, if regardless of the member base your paysites still receive a lot of traffic then it might be worth that or more to someone.

I'd post it in the buy/sell section, the serious buyers will contact you. Good luck.

[Sergio Payingsolutions]

There's a lot of factors, ideally we'd all sell our websites for 10 years worth of income, but only a giant corporation would even consider that, and you'd have to be doing well to begin with. With a dying website, that probably only maintains it's membership because of people that don't care enough to cancel or because of whatever you're doing to get new members a lot of people can put up a new website and replicate or do a better job of it without paying more than a domain name and maybe a designer, plus whatever to advertise. As others said, you might be better off just keeping the websites.

[fuzebox]

How old are the sites? What kind of content?

There's a huge difference between 2002-style tours and content and 2007...

[The Ghost]

Type of sites, current income, content quantity/age/exclusivity all factor in. Best to post it and get some real feedback.

[Shark]

Thanks guys this gives me something to work with.

Some quick calculations shows running them into the ground will produce a greater amount overall. I'm not in any hurry to get rid of them but was thinking that if I was to sell now would be the time before revenue continues to fall away.

Thanks
Shark

[james_clickmemedia]

Do you have exclusive content?
Does the domain name have value, has it been branded online for 10+ year for example.
Is the members area controlled by a cms ? If this paid for or leased ?

so many questions = so many variables.

What are "second hand" exclusive scenes worth these days ? 10c, 15c on the $?

[Paul Markham]

If you have exclusive content you own out right, hit me up. I have a solution that will allow you to keep the site and earn from the content.

[DamianJ]

Originally Posted by Paul Markham

If you have exclusive content you own out right, hit me up. I have a solution that will allow you to keep the site and earn from the content.

I tell you what, Paulie, we have really different definitions of retired.