At time of writing (August is usually quiet) there are around 300 brokered,web-based businesses for sale between $20k and $2M.
Averages are severely deceiving but If you were to look at average multiples alone you would find a typical range between 1.8 and 3.7x annual net profit.
Sure, it happens every day on places like Flippa, WebsiteBroker, and eBay.
It's not the sexiest process, or the highest valuations, but if you're looking to exit for 5-to-6 figures, you might be able to find a buyer there easily.
Comments
Here are some actual sales figures:
http://feinternational.com/buy-a-website/#tabs-3
http://www.webrokr.com/soldsites.php
For sites/apps with steady traffic & earnings, the general rule of thumb for calculating valuation has been multiples of monthly net profit:
* 2002-2004: 3 to 6 x monthly net
* 2005-2012: 10 x monthly net
* 2012-2014: 20 x monthly net
* 2014: 30 x monthly net
So to flip a site for > $200k, you need to be doing approx > $7k/month.
There are a few hundred live examples from 2013 in the Centurica website buyer reports - http://www.centurica.com/website-buyers-report.
At time of writing (August is usually quiet) there are around 300 brokered,web-based businesses for sale between $20k and $2M.
Averages are severely deceiving but If you were to look at average multiples alone you would find a typical range between 1.8 and 3.7x annual net profit.
Sure, it happens every day on places like Flippa, WebsiteBroker, and eBay.
It's not the sexiest process, or the highest valuations, but if you're looking to exit for 5-to-6 figures, you might be able to find a buyer there easily.
More interested to know about exits in the $200K - $1M range. It will be interesting to note exits at the lower end of the spectrum.