@Jon Anthony - Be careful with the advice you're taking in this thread at this time. The only person that can make a decision on your business is you.
The overwhelming majority is looking at your business from the same lens right now: the economy is tanking, affiliate marketing businesses are risky, having a nest egg at 25 would be good...
However, we're all missing a lot of info - exactly what the website is, who you are, the potential of the business to keep growing in a recession, and your ability to keep growing the website. These are all questions that you have to answer. We can't answer them.
In terms of valuation, @CareCPA hit the nail on the head...
That's likely what you're looking for.
Considering that someone reached out to you, there's likely two options: a) They really want to add the business to their portfolio (high valuation); b) they're going to waste your time.
Get on a quick call. Feel the guy out. Do some background research. If the answer is "a", then push for a 4x multiple.
P.s. If you want my advice, I'd sell if possible but I wouldn't go out of my way to do it. You weren't planning to sell before, so it seems like you have a plan in place. If you sell, either replicate what you did before, or take a portion of that money as a downpayment for a $2MM SBA loan to buy a $500k cashflowing business.
The overwhelming majority is looking at your business from the same lens right now: the economy is tanking, affiliate marketing businesses are risky, having a nest egg at 25 would be good...
However, we're all missing a lot of info - exactly what the website is, who you are, the potential of the business to keep growing in a recession, and your ability to keep growing the website. These are all questions that you have to answer. We can't answer them.
In terms of valuation, @CareCPA hit the nail on the head...
2x-4x trailing twelve months profit
That's likely what you're looking for.
Considering that someone reached out to you, there's likely two options: a) They really want to add the business to their portfolio (high valuation); b) they're going to waste your time.
Get on a quick call. Feel the guy out. Do some background research. If the answer is "a", then push for a 4x multiple.
P.s. If you want my advice, I'd sell if possible but I wouldn't go out of my way to do it. You weren't planning to sell before, so it seems like you have a plan in place. If you sell, either replicate what you did before, or take a portion of that money as a downpayment for a $2MM SBA loan to buy a $500k cashflowing business.