I was talking to kub365 on Instant Messenger earlier tonight about the selling value of a website. We were talking about how I've received a couple of offers from some fairly large corporations to sell DaniWeb and I've always refused right off the bat. He asked me that if I did ever sell, what price would I sell for, and needless to say, it was much higher than he would have thought.
So then we got into a discussion, of course, of why that was. I have been continuously hearing that many website properties go for a rough estimate of 12 to 36X their monthly revenues. However, I couldn't disagree more. I think that a website should never ever be valued based on curent revenues but instead based on potential revenues.
For example, suppose I were to sell DaniWeb (which I have no plans of doing, BTW) to some large corporation. That corporation would of course have many more resources than lil ole me available to it to successfully market DaniWeb in terms of selling advertising - ie an experienced sales team. Therefore, they would be able to monetize my existing traffic MUCH MUCH better than I can (although I am learning and doing quite well, if I do say so myself)
Therefore, without any change to the website at all, and not even any money spent on promotion or site advertising, but just the addition of a 3 person experienced sales team, can literally increase revenue one hundred fold (no kidding).
What does everyone think of this? I'm actually surprised that my viewpoint seems to be quite unique from what I hear on so many other internet marketing forums and blogs.