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Originally Posted by schmeg007
18 Months of Average Site Revenue + Goodwill = Asking Price.
Where Goodwill is just the price that your buyer would have to pay for the brand recognition and other uncountable/undefinable parts of a website that a dollar value cannot easily be assigned.
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It's a good rule of thumb. If you have consistent revenue growth though, project your increased revenues for the next 18 months and base the price on that instead of the average. There are a few or more variables to consider such as current operating expenses (expenses you are currently paying to maintain the site - hosting fees, vBulletin licensing fees, etc.) and opportunity costs (if you sell the website, could you be making more money by spending more time developing and maintaining a different website).
Finally, assess the needs of the buyer. If he's anxious and you can afford to risk killing the deal, hike the price.