I wanted to write about this before, but the news of AOL’s acquisition of TechCrunch motivated me to post this general question: At approximately what revenue multiple do you sell a website that has a business operating on it?
Over the past few months, a number of individuals and companies have made inquires on a couple of my websites. I’ve always replied that I have no interest in selling, because for me, it’s silly to sell a revenue generating website that has nearly zero overhead. On the flip side of this is the fact that there should really be a point at which I would sell the website and domain name, since the ultimate goal is to make money.
Now I know there are LOTS of considerations to take into account when selling a website (like loss of revenue and tax considerations), but at what type of revenue multiple should a company be willing to sell a website? This is a very vague question because it would be a very different answer for a company with an operating loss, tiny profit margin, or 100% profit margin, but I look forward to seeing what you think.