I am interested in buying websites.
However, from my search, there are so many sites for sale out there with a lot of sellers asking way too much for their sites. Some of these sites do not even have any history of revenues. The sellers are so enamoured with their sites that they have this magic number they want for it. Any good business transaction only results in a fair price that works for the buyer and seller. It's not a one way street!
I am only looking at buying established websites with a history of reveneues.
My question is: Is there a standardized formula in deteremining a fair price to pay for a website that has some history of revenues?
Some people say, to project 1 year of gross revenues, others say 2 or even 3??? Most sites for sale now only have a few months of established revenues. My business experience would tell me that that based on only a few months of revenues, a fair price would only be 1 year's projected earnings.
Any one here has any input into this?