Let's talk business.

[WolfPackST]

Hypothetically, let's say you were making about $300 a day (ads) with an automotive blog. Let's say the income was a bit up and down, but on average about $300/day.

Lets say somebody came to you and offered to purchase this blog out right for around $90k. Of course it sounds much better to just keep the blog, keep updating it, maintaining it, etc - and potentially pull in way more daily than you are now - but $90k in a lump sum is nice - plus nothing is stopping you from starting ANOTHER blog and using the same formula for success.

Thoughts?

Again, this is all hypothetical.

Thanks

 

[pho_phizzat]

Tell them 500k or Get the **** out!

 

[king nothing]

How long would it take to build this new blog to that $300/day level? 90k seems cheap for something that brings in around 110k/yr unless you are confident you could have said new blog producing income quickly

 

[WolfPackST]

How long would it take to build this new blog to that $300/day level? 90k seems cheap for something that brings in around 110k/yr unless you are confident you could have said new blog producing income quickly

The first (current blog) started in July of this year. Just not sure if it's an exact science to replicate that kind of traffic again.

 

[Torch10th]

You're being undercut with what seems like a nice big number. If you're grossing on average 300 per day, that's close to 110K per year in revenue. As a general rule of thumb, when purchasing an enterprise or business, you look to be profitable from the purchase in 3-5 years depending on business type, details etc.

It's pretty unheard of to be in the red at the end of the first year unless you bought out a sucker or somebody just looking to get out of the business/retire.

What I'm trying to say here is that 90K is an atrocious deal in this case unless you're just looking to get out of the blog or retire. If that is the case, you might be able to find something in that deal. But then, how much revenue would you still retain with the blog if you just stopped updating it? If you want out, it may be your best bet to just let it die slowly and live off it's proceeds while you go on to do something different.

 

[VirtualSVT]

at 300 a day avg I wouldn't get out of bed for a 90K offer unless I had a immediate backup plan ready to go where I'm making more money.

 

[nxhappy]

keep the blog, and find out ways to make it better/bring in more profit.

90k isn't shit in this situation .

 

[98 Saleen Cobra]

That's less than 1 years worth of salary.. NOT worth it imo.. Tell him you want 5yrs of salary at 300/ day..

 

[94_Vert]

It really depends on what your taxable income is(if you're a sole proprietor), that's what tells you how much a business is worth. I would ask for 2-3x the taxable annual income if you're thinking of selling.

 

[Satyr]

Sounds fair. I'd take it.

 

[Drive XR7]

You should counter with at least double what they offered.

 

[Camaro_94]

You shouldnt take anything under $300k.

Be careful though, because generally there will be something in the sale/contract where you cant compete with them for "x" amount of years after they purchase.

 

[spyder1337]

Looking from the buyers standpoint, i'm basically taking a risk for a year to make my money back and hope to profit after that on someone else's idea. I would look at the long term on this investment and think what if worst case I only make 30k a year for the next 10 years and it's a side job.

Why would you want to sell it if it's making that much money and doesn't sound terrible to do? Unless you know it's got a shelf life and it's coming to an end, then I would dump it. However, I would only sell to if I had an immediate plan that required a large liquid amount to dump the money into so I could get that rolling asap and knew it would be much larger of a profit.

 

[Svt4ever22]

It really depends on what kind of shifter is right for YOU. Don't just take someone else's opinion and go with it. Shifting is something that you need to feel comfortable with. Having that right boom bam shift is what it's all about. Consider yourself lucky.

 

[sleek98]

A lot of business sell for 2-3x gross income average over the last 2-3 years. Just did a return for a company that sold for 2.2 times the average of the last 3 years revenue.

Is it a horrible deal? No. It's it a great deal? No. I would go back for a little more and see what they say. Without seeing the true net income of the business it's hard to say exactly how good of a deal it is.

 

[KingBlack]

The math - and answer - seems simple enuff. Am i missing something?

 

[rotor_powerd]

Since it sounds like a side gig, I'd rather just hang on to the steady income - $300/day for essentially doing nothing isn't a small chunk of change to be stashing away. Guess it depends on what you want to do with the lump sum.

 

[R.D.P.]

I think OP is either worried about maintaining\growing the current revenue or is feeling over stressed with the pressure to keep up the content, or maybe a little of both. I think you need to listen to your gut and think where it will be in a year. If you think it's not going to be at or exceeding the level it's at now, you should work a better deal and bail.