One keyword site

[mikebrad]

Hypothetical question:

What do you all think the value of a site that made all of it's money off of one keyword?

The keyword converts very well, domain is a couple of years old and has been ranking for that keyword for over 6 months.

[PokerProp]

Hard to give the site a value based on that info alone.

I have many sites that make their money stricty on a single keyword as well as a few random variations of the same keyword.

[mikebrad]

Not looking for a dollar amount, just something along the lines of "3x monthly income" or whatever. It's exactly as you say, though. Actually, it's more than one keyword and their variants but this one particular keyword makes $x,xxx a month.

What do you think?

[Simmo!]

I think it will depend entirely on the buyer. The added risk here is obvious if it drops on that keyword. Depends what risk the buyer wants to take. Conversely, the buyer might look at it as underachieving on other words and that it has potential to buy at a decent price and develop.

All I can add is that as a buyer, I'd consider something around 6x monthly would still be risky but probably worth a punt (depending on other factors) and in light of the fact that there will obviously be existing revenue from existing players to shore it up. But that's only my view on it obviously - someone prepared to take risks may pay a fair bit more

[mikebrad]

Thanks Simmo!. I was thinking something like that, just curious about one of my sites.

It's actually a little more complicated but I wanted to simplify it to see if anyone has had the experience of selling a site like above.

The site actually makes a bit more than that but about 50% of the income comes from one keyword. The rest is spread around a bunch of keywords. I was just trying to find out what kind of value a strong keyword brings.

[Simmo!]

No worries. I think if you sell the affiliate accounts with it, that would make the difference between selling it for something you find acceptable and something you don't

[Kyle]

If the site is actually making money, then you should expect at least 10x monthly income. There are plenty of available buyers that will pay 10x - 12x for a solid earner. If it's a good one keyword .com name that certainly would add some value too.

edit: It really doesn't matter if the majority of $ comes from one keyword, that is a risk the buyer will take and all part of the game. No rankings are ever guaranteed and like Jeremy points out in his blog taking risks in business (and failing sometimes) is necessary for success.

[mikebrad]

Kyle, it's a subpage, more like mypokersite dot com/ keyword. Interesting point, though.

"Solid" meaning consistent?

[Kyle]

Yes generally any potential buyer is going to want to see 6 months proof of income. Of course sometimes people buy sites on potential but you are going to really have to sell it. Numbers sell themselves.