Website value

theshamu

Hi,

I have a website which generates between 10-12k pa with a 200-300% profit margin on all products. I spend about €1200 a year on advertising using various methods.

I produce all the products myself from home.

It's a .ie domain, 3 years old with and additional catchy .ie domain re-directed to main site.

Registered business

The site would be a great addition to an existing business (in the same sector) or great for someone to take over and go alone as I am, I would supply all files etc.

What I want to know is what is it worth?

My circumstances are changing am I'm weighing up my options.

Cheers..

Buttercake

what is the sector?

jimmii

The main reason for website being profitable is your products without your products to go along with the site then it loses a lot of its value in my opinion.

Peterdalkey

The maximum margin you can have is 100% assuming zero cost for items!! I asume you mean a mark up of 100-200%. When you say generates: do you mean net margin, gross margin or sales?

jcon1913

OP It would be useful to have an idea about the products. if they are once off items e.g. works of art which no-one else can produce then you will find it diffiult to get any value. On the other hand if you can show that the products are easily made up by some ( new ) owner then you wil get some value.

Basically the profit and loss will be:

Sales 12,000
Cost of goods ( 12,000 at an average Gross Profit of 66% ) 4,000
Gross Profit 8,000
Overheads - advertising 1,200
Net Profit 6,800

Does all that make sense?

Then it depends on the view a prospective buyer puts on the Net Profit.

tricky D

jimmii wrote: »

The main reason for website being profitable is your products without your products to go along with the site then it loses a lot of its value in my opinion.

There's also the matter of selling .ie domains without the attached business. From the IEDR:

Please note: The IEDR does not condone or support the secondary sale of .ie domains. If it comes to our attention that any .ie domain is for sale, we withhold the right to delete that domain, with five days notice.

Previous thread: http://www.boards.ie/vbulletin/showthread.php?t=2056237496

Whats your net profit figure? Multiply that by three and you will probably be close to the true value of the site (in a potential buyers mind too)

mneylon

tricky D wrote: »

There's also the matter of selling .ie domains without the attached business. From the IEDR:



Previous thread: http://www.boards.ie/vbulletin/showthread.php?t=2056237496

Yeah - read my post in that thread (http://www.boards.ie/vbulletin/showpost.php?p=71948251&postcount=16) - you do not need to sell the business in order to transfer control of the domain.

Peterdalkey

Pity the OP has not engaged or reponded to the questions raised, the topic is an interesting one.

dozy doctor

I to would be interested to know where is the best place to sell Irish websites, so if anyone would care to let me know that would be great...

mneylon

dozy doctor wrote: »

I to would be interested to know where is the best place to sell Irish websites, so if anyone would care to let me know that would be great...

The Irish market is small, so at the moment there isn't any real dedicated marketplace.
I've seen a few offered for sale on boards.ie and over on http://www.irishwebmasterforum.com/
But you're as likely to see them on one of the bigger marketplaces like Flippa or Digital Point.
Obviously if there's a .ie domain name involved it's more complicated and you can't "simply" sell the site +domain the way you would with say a .com or other domain extension
For a higher value site (ie. one with actual revenue and good stats) you might find that using a broker makes more sense.

Peterdalkey

depends on the type of site. Most likely buyer is someone in your sector wanting to buy as an add-on. You might get lucky if you add a few details for us to be able to "help" you
ever mindful of the tin badge brigade, I am!

dozy doctor

Blacknight wrote: »

The Irish market is small, so at the moment there isn't any real dedicated marketplace.
I've seen a few offered for sale on boards.ie and over on http://www.irishwebmasterforum.com/
But you're as likely to see them on one of the bigger marketplaces like Flippa or Digital Point.
Obviously if there's a .ie domain name involved it's more complicated and you can't "simply" sell the site +domain the way you would with say a .com or other domain extension
For a higher value site (ie. one with actual revenue and good stats) you might find that using a broker makes more sense.

Thanks Blacknight.... There are 2 .ie domains involved in this...
What are the implications of selling these and like you stated, it is not a simple as selling a .com or .co.uk domain....

Is there a dedicated page to sell on boards or http://www.irishwebmasterforum.com/

Is there any way around this or maybe you could PM and recommend a broker that i could contact in order to try and sell them...

It would be an awful shame to let them just wilt and die

dozy doctor

Peterdalkey wrote: »

depends on the type of site. Most likely buyer is someone in your sector wanting to buy as an add-on. You might get lucky if you add a few details for us to be able to "help" you
ever mindful of the tin badge brigade, I am!

Would love to post them here, but do not think it is a good idea to do so....:rolleyes:

Peterdalkey

dozy doctor wrote: »

Would love to post them here, but do not think it is a good idea to do so....:rolleyes:

Having been asked to disclose them and the specific information is vital to get the best advice as how to market them, I would be very surprised if there we any objections from the powers that be.
We need the info to get our juices flowing!!

dozy doctor

Peterdalkey wrote: »

Having been asked to disclose them and the specific information is vital to get the best advice as how to market them, I would be very surprised if there we any objections from the powers that be.
We need the info to get our juices flowing!!

Will send you a PM with the websites and anyone else who may interested may contact me directly...

theshamu

Sorry lads, quite busy since I posted this. Will answer all questions later on today.
Appreciate the comments so far.

p.s. it's in the wedding stationery sector, all products produced by myself too.

theshamu

Ok so, it's 90% wedding related as in wedding stationery but we also sell party invites, banners and personalised candles.

Example of a product would be:

Wedding invitation x 100 Cost price: €30-€40 retail price: €120, this margin is across nearly all my products.

jimmii

theshamu wrote: »

Ok so, it's 90% wedding related as in wedding stationery but we also sell party invites, banners and personalised candles.

Example of a product would be:

Wedding invitation x 100 Cost price: €30-€40 retail price: €120, this margin is across nearly all my products.

Thats some pretty sweet margin. Do yo wholesale as well? If you sold the site would you continue to supply stock or are you moving on from this completely?

theshamu

jimmii: It's been a long road to get everything to this point, it certainly hasn't been easy. I'm a designer so constantly designing and working on new designs to keep things fresh.

We do have a handful of retailers who display our products, they get 25% discount which works quite well. Again, with time I could get another 10 retailers on board no problem.

I know the potential the site has, just need to market it better I think.
From next week I'll be adding wedding related articles to bump up the seo.

Just in two minds weather I can put the time into it as my circumstances are changing.

Peterdalkey

The value in the business/website is you and your input. Without you, it is probably worth next to nothing , in my opinion.

jimmii

theshamu wrote: »

jimmii: It's been a long road to get everything to this point, it certainly hasn't been easy. I'm a designer so constantly designing and working on new designs to keep things fresh.

We do have a handful of retailers who display our products, they get 25% discount which works quite well. Again, with time I could get another 10 retailers on board no problem.

I know the potential the site has, just need to market it better I think.
From next week I'll be adding wedding related articles to bump up the seo.

Just in two minds weather I can put the time into it as my circumstances are changing.

the retailer gets 25% off what you are selling it for? Yikes thats a bit tight! I think without you being involved in the site its worth next to nothing its you that brings all the value to it.

Fries-With-That

theshamu wrote: »

jimmii: It's been a long road to get everything to this point, it certainly hasn't been easy. I'm a designer so constantly designing and working on new designs to keep things fresh.

We do have a handful of retailers who display our products, they get 25% discount which works quite well. Again, with time I could get another 10 retailers on board no problem.

I know the potential the site has, just need to market it better I think.
From next week I'll be adding wedding related articles to bump up the seo.

Just in two minds weather I can put the time into it as my circumstances are changing.

Just a thought, would it not be possible to get someone to work from home (small fee + commission) to maintain and update the site, you still supply the product it could be a win win situation for both parties.