I recently talked to a site broker about the new niche site I’m building.
My plan is to sell the site eventually, but I figured if I could sell the site now for a reasonable price without having to do any more work on it then I will.
Talking to the broker was straightforward and they asked me simple things like traffic numbers, revenue etc.
The site I’m working on is at a stage where they call it a “starter site”.
It means the site has been built and there is content published on it, but it is not yet optimised for Google or making much money.
After looking at the site this was their offer:
Thank you for submitting your site to be evaluated and for taking the time to provide the necessary information to allow us to complete our due diligence process.
We have an offer, which involves listing the website on our marketplace. The average for 12-months (April 2022 to April 2023) would be $104.
Utilizing the marketplace option allows us to list the website for a higher multiple than if we were to buy outright. We would be able to list the website for $3,330 and would operate it in a “dutch auction” style where we reduce the price by $49 every 2 days until it sells or reaches $2,600.
So basically I’m looking at getting between $2,600 to $3,330 (USD) for the site minus a 20% success fee, based on an average monthly revenue of $104.
However, the reason that monthly average is so low is because I haven’t been working on the site for 12 months yet. It’s only been about 6 months, and for those months the monthly revenue is closer to $250.
I’m confident I could probably even grow this to around $500 and maybe $1,000 within the next 6 months.
If I can still get 30x monthly revenue for the site, that would mean the site could fetch as much as $20k to $30k, which would be great.
As I still have things I can do to improve the site, I told the broker I’d work on the site for another six months and we’ll take another look then, which he said was a great idea.
The main things I’ll be doing to improve the site are the standard niche site basics:
- Publishing more content
- SEO/keyword optimization
Hopefully, in six months I can get a five-figure sale and pump that straight into the public portfolio!
If you’re interested in building your first niche site, I have a free guide that teaches you everything you need to get started.