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Can anyone value this domain?

Work out what net profit the forum directly generates per year is. Multiply that by about 5 and that would give you a reasonable value.

Are you sure its per year ? i would say per month otherwise it would take 5 years to get your money back which just isnt good business practice.
 
Are you sure its per year ? i would say per month otherwise it would take 5 years to get your money back which just isnt good business practice.


It's a pretty standard way to value any business. Profit over 3-5 years is generally accepted to be the value of any business.

The investor may choose to take other factors into consideration of course.

5 years is not a long time in business. If someone offered a business to me for a value equal to only 5 months profit I would bite their arm off!
 
Are you sure its per year ? i would say per month otherwise it would take 5 years to get your money back which just isnt good business practice.

You are right RiverWire. Its per month not per year. Maybe mistake from surreypcsupport.

DON.
 
It's a pretty standard way to value any business. Profit over 3-5 years is generally accepted to be the value of any business.

The investor may choose to take other factors into consideration of course.

5 years is not a long time in business. If someone offered a business to me for a value equal to only 5 months profit I would bite their arm off!

I suppose it would depend on the niche and the profit , if a site was earning $500 a year and the seller wanted $2500 just based on the profit i would tell him where to go personally, Of course other factors would come into as well but i think a business as buying a company you could be correct but buying a site is totally different
 
If a business is earning £500,000 a year the owner would be pretty foolish to sell it for £250,000 don't you think.

It's no mistake, I really do mean 3 to 5 years. As I mentioned before there are other factors to consider. For example, if a company is making £100,000 per year you might value that at between £300,000 and £500,000. However, you may notice that the company's liabilities far outweigh their assets. In which case you may decide the businesses is valueless e.g. Royal Bank of Scotland.

Or, you may notice that the Return on Investment (ROI) for the company is excellent but then you may notice that this is simply the result of chronic under investment and again, this would determine the value you place on the business.
 
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Absolutely, which is why i said maybe different in a business (i.e a business that has over 5 years proof of income and a steady, stable revenue stream ) , but a website that clearly earns next to nothing would be classed totally different , you cant base something that has pennies as an income over a 5 year stretch.

When websites are concerned they are based on 10 - 12 months revenue not 3 - 5 years.

Again other factors would be involved too, i can pretty much guarantee that you would never see a website that earns a huge amount of money displayed on a public auction around the internet unless they are on the down turn or there is something not quite right.

These sites that do earn 6 figure numbers per year obviously would be valued differently , even 5 figures would be valued slightly different but not too much.
 
Most investors expect to be making a return on investment within 5 years and that is where my logic comes from.

It doesn't matter what the investment vehicle is. If a website or business has proven earnings and those earnings are judged to be likely to continue in the foreseeable future then it is attractive to an investor if it pays back within 5 years.
 
MI
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