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Building to sell or to keep?

emorgan

Contributor
Jul 24, 2007
85
25
Phoenix, AZ
I'm working on a site that I am building up to either sell, or gain sponsors/advertising for and keep. Haven't decided yet. I was wondering if anyone has had experience either way with blogs/sites. This site is one with a shelf life, but could be used again in the future.
 
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MJ DeMarco

I followed the science; all I found was money.
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Jul 23, 2007
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I prefer to build and sell. However the key metric is the site has to have cash flow, or potential cash flow.

So if the site generates $5K/mo in profit - its valuation might be $180K (3X Prior Year Earnings). Typical metrics in the internet space is 3-5X earnings (for small private companies).

If there is no cash flow, you have to rely on having the domain having value, content value, SEO value, as well as the *potential* market that the site serves.

One method is too keep the site and grow its cash flow until your target sale metric is hit -- then try to sell.

MJ
 

emorgan

Contributor
Jul 24, 2007
85
25
Phoenix, AZ
Domain name the thing

Thank MJ- my site is about whats going on leading up to Super Bowl XLII- so thats what I mean by shelf life. It may make money leading up to that, but once thats over, the domain is where the value maybe for any future AZ Super Bowls.

I really hope to make some money with this, but more than that, make some more business connections around town, you know?
 

MJ DeMarco

I followed the science; all I found was money.
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Jul 23, 2007
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Ahhhh so thats who requested to be a friend on MySpace ....

Yes, the shelf life on that project is short!
 
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emorgan

Contributor
Jul 24, 2007
85
25
Phoenix, AZ
Bad experience

Yeah- I don't have a personal My Space- sorry! I had a bad experience with that... lol
 

AroundTheWorld

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Jul 24, 2007
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Business with a shelf life... or what I called my old business... the sinking ship.

The value of your business *may* continue in the future *if* another super bowl in AZ comes along... or - could it be for every superbowl?

This is what I think...

Sell while it still has value - though I don't know if many investors would be interested in buying something that they can see ending soon.

First, I would put a little time into figuring out if it can last somehow - ie. roll into the next super bowl, and the next. etc.

Then build like crazy!
 

kimberland

Bronze Contributor
Jul 25, 2007
822
121
I agree with Sonya.
I'd ramp up quickly with the advertising dollars and traffic
and then sell before the event happens.

Before I sold though,
I would try to direct some of the traffic into the next project
(by placing an ad on my own site).

: )
 
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