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Re: How do I price my site for sale?
From Jim at Here on 20 Sept '99
replying to Re: How do I price my site for sale? posted by karen

What an exciting thread :)

Karen, look at it like this: it took two of you six months to build
this, so that's equivalent to one year's salary for one person. This
ficticious person would have to be reasonably talented and motivated
to produce a site like you have. I live in the UK, but people who
produce that kind of work earn considerably more than $25K a year.

How much would your radio presenter friend have to fork out to
a) recruit a reliable and talented company to both research *AND*
build a site like you have, *AND* risk choosing the wrong company
and have to start again with another company, and b) how long would
it take him to build it? Remember that he's in a hurry. People in
a hurry pay more for a quick sale. You have no serious competitors
so you're not in a price war, the only alternative he has is to
build it himself, from scratch, which he will go out of his way to
avoid.

If I was in your shoes, I would offer him two alternatives: a) out-
and-out purchase of the site - I would start the bidding at $100,000
- or b) a partnership (share of the profits), perhaps 50/50?

If he wants to go ahead and buy the whole thing, what's he going to do
about maintaining it? He should be on the ball enough to realise that
a successul site should be constantly updated, otherwise it'll
shrivel up and die. Who will do it once you're out of the picture?
That would be like killing the golden goose.

My gut feeling is that if you offer this site for $24,600, they'll
rip your arm off at the socket! I certainly wouldn't even consider
anything less than $50,000.

One thing I would certainly advise you NOT to do is "itemise"
the costs like you seem to be doing. That kind of tactic would only be
relevant if he was hiring you in advance to build a site for him, which
is not the case here. If you're buying a car, does the salesman tell you
how much it cost to build? If he did, you'd pay a whole lot less! It's
the same for a Web site, you're negotiating how much the site is worth
overall, not what your hourly rate is. Unless he opts for the partnership
deal, there's no reason for you to justify your price. He can see your
site perfectly well for himself, all you need to do is tell him "this
is the price" and he'll either take it or (more likely) make a counter-offer.

By the way, congratulations on attracting such interest, this sort of
thing doesn't happen every day. The only reason this is happening is
because you have an outstanding site - don't forget that when you're
at the poker table - you're holding the aces :)




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