| This sounds like an eminently fair deal for this site unless I’m greatly underestimating how lucrative your advertising is or you have subscription revenue you didn’t mention. You’ve made something people like. Congratulations. Nothing I say about operating the site as a business detracts from that. Playing the probabilities: You probably do not have a defensible business. Your users are loyal to Marvel trailers, not to your site; it is merely a way they know to consume Marvel trailers. They would switch in an instant to a similar site if yours went away or was dissatisfying. You likely do not have any durable advantage in marketing your site. A durable advantage at your scale is one that a smart person given a month and a $5k budget couldn’t duplicate. The nature of your revenue is likely non-recurring. You have to claw your way up from $0 every month. A change in the advertising market or your biggest source of traffic is an existential risk to your business. Next month’s revenue might literally be half of this month’s without you doing anything wrong. All of these factors are going to push down the market value of your site to people who want to buy it and operate it as a business. If you speak with a broker (I used FEInternational, twice), you will probably told that the value is ~2X the annualized cash flow you got from the site (revenue minus hard costs), when using the last six months average as a baseline. (i.e. 24X average of last 6 months) If that calculation comes up with an answer well above $50k, and you want to sell, talk to a broker. Otherwise, the offer reads (to someone with only educated guesses of revenues to go on) as generous. Many offers do not turn into transactions; sometimes they do. Separately, do you want to sell? What are your goals for yourself and this business more broadly? Are they helped more by you continuing to run it or by having $35k or so in the bank? |