Is going cheap?

  • 0
  • February 20, 2008

Apparently the forum and directory is up for sale at Sitepoint priced at $500,000. To me this seems like a bargain.

The site gets 700,000 uniques per month and ranks very well in Google, revenues are $40k which means the site is selling for about 12 months revenue, that is amazingly low for a forum.

The issue gets more clouded when you look at the revenue sources, a lot of the revenue comes from people submitting to the directories which is hardly a sustainable business model. Monetizing forums is almost impossible and judging by the price of v7n the users aren’t worth much either. V7n values it’s users at around $10 each.

An interesting statistic is that if v7n was monetized as well as it would earn $300,000 per month.

What do you think? Bargain?

Patrick Altoft

About Patrick Altoft

Patrick is the Director of Strategy at Branded3 and has spent the last 11 years working on the SEO strategies of some of the UK's largest brands. Patrick’s SEO knowledge and experience is highly regarded by many, and he’s regularly invited to speak at the world’s biggest search conferences and events.

  • Stephan Miller

    Makes me wish I had a half a million lying around. I think it’s a deep discount.

  • Tom Beaton

    There is probably a reason why it is going cheap. Perhaps they have noticed falling monthly incomes? Like you said forums are hard to monetise.

  • Sucker

    I would expect more too, especially for a BIN. You’d think an investor would step in pretty quick to acquire this.

  • ByronB

    I think it is really cheap, there must be summin fishy going on. Although you would normally sell a site for 10 to 12 months revenue.

    Man, I want 500k…

  • Chetan

    It is really going for too low..
    And the reason also might be the decrease in income and PR of all the sections like forums, homepage and its web directory.

  • Luke

    lets face it, the auction listing has already had loads of hits and publicity yet no bids. Everyone says its worth much more but placing a realistic price on it will problem mean zero offers.

    Websites have to go cheap on auctions in order to get a half decent price

  • Chetan

    Hmmm 4 days and 4000 views to the sale thread, still no bids. The minimum bid should have been lesser a bit so that it would have got good start off.

  • harsha

    definetly cheap

    its bargain i tried arrainging funds coudnt manage over 150K$ bad luck

  • monopoly slots

    Maybe the fall in google PR that was being talked about on the v7n forums has something to do with what looks to be a knock-down price?

  • ricom

    It’s a great deal for a site with such high traffic

  • Tradex

    What a great bargain for a site with such great traffic! There must have been a reason it was going so cheap.

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