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.

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