G
GuestUser4aMPs1
Guest
Normal affiliate-monetized content sites with 100% organic traffic.What type of sites and where? Content sites are pretty much always sold as a multiple of monthly profit, not revenue.
Also, correct. They *are* sold by EBITDA, but with the largest ongoing cost off the P&L.
Maybe the industry has changed but at least when I was helping to broker content sites in 2020/21 at a place that specialized in it, the only costs written on the books were fixed hosting and (maybe) plugins costs. Meaning the sites would sell at ~99% profit.
I'm not an accountant, so bear with me for this next section...
The reasoning is that although Content Writing is often an expense that site owners have to cope with to maintain and grow rank, it's not recorded in the P&L/Income Statement because it doesn't directly contribute to revenue. One could argue that writing articles in hope that it'll rank is speculative in nature, so I don't think it fits in the COGS section of your P&L.
Therefore, it's categorized separately as a Capital Expenditure, which isn't on the P&L. If you write content, you might or might not make more money as a result of improved ranks/traffic. If you stop writing content, you'll still make money (for a time) if you let the site sit there. It's sort of a "passive" asset at that stage.
I don't agree with the practice because an owner will always need to pay for writers, but it is what it is.
Therefore, the multiples were, and still are *massive* due to a combination of factors:
— Somewhat "Passive" model, at least in the eyes of the buyer
— Extremely Scalable Business Model (just sell other people's stuff)
— Almost no expenses on the books (contributing to insane valuations)
Some other time-relevant factors:
— Huge outside interest during the pandemic, as it could never be shut down.
— People buying a bunch of stuff with stimulus.
— People spending WAY more time online.
— Cheap money propping up asset prices across the board.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today