I Was Just Offered Five Figures For My Niche Site!

5 Figure OfferMany of you have watched me build a niche site from scratch – from the inception of the idea, all the way to #1 in Google and earning a very generous passive income of about $700 to $800 per month.

My security guard training niche site has been a great success thus far, and I’m happy to announce that on Monday, exactly 8 months after the site was “born”, I received an email from an investor with an asking price of $10,000.00 to buy the site.

To know that I was able to come up with an idea for a website, and in less than a year receive a 5-figure offer for it is very fulfilling. This just shows you that the more you put out there, the more opportunities will come your way.

My Decision

Immediately, I was excited by the “bright lights” and possibilities that an extra lump sum of $10k could do for myself and my family. Yes – I’ve been earning much more than that each month (see income reports), however I feel that my existing income should not impact my decision whether or not to accept this offer. Even though I am earning quite a bit, a dollar is still a dollar to me, and every little bit helps.

An extra $10k is a significant amount of money that could be used for things like my son’s education, donations, our housing fund, a vacation, etc. – all things that are very important to me.

Now that said, I have to think about my site’s current state, where it’s headed and how much it could earn in the future.

Like I said, the site currently earns about $700 to $800 a month. This means that the site would earn the amount offered to me in about 12.5 to 14 months, or a little over a year.

I did a little bit of research on selling and flipping websites, and typically a site can be sold for a price of about 3 times the reflected annual income, or what it could earn over the span of 3 years.

Some quick math:

$700 per month x 12 months in a year = $8400 per year

$8400 per year x 3 years = $25,200

So, this means that if I were to attempt to sell this website myself, maybe on a site such as Flippa.com or another marketplace, it could potentially sell for at least $25,200. This does not include potential future income, which I’ll get to in a second.

Based on these figures alone, I decided to decline the initial offer, and I think you’d agree with me that this was probably the best move for me at this moment in time. The kickers, I feel, are that:

  1. I could earn $10k in a little over a year if nothing else was done to the site; and
  2. I could earn $10k passively on the site, since 0 hours of work are required each month to maintain it.

A couple of interesting questions that came across my mind during this process were:

1. What Is the Future of the Site?

The site is definitely a growing force.

Although it’s already ranking #1 in Google for it’s primary keyword, each month the site has seen more traffic, is generating traffic from more keywords, and is making more money than the last. Plus, with the addition of 39 more State requirement posts that I’ve outsourced (and am already receiving and posting on the site), I should expect all of these numbers to increase over time.

I’m also seeing more and more advertising requests come in, which I have not acted on yet (I’m waiting until the site has all 50 States on it before I roll out the directory), and there are affiliate opportunities that I haven’t taken advantage of yet either.

99% of the income currently generated is from Adsense, so there’s definitely room to explore other avenues of income.

2. How Much WOULD I Accept?

$10k is not enough, but what is?

If I was offered the market rate of $25,200 – would I accept that offer?

I would probably say no because of the fact that the site is growing and that “market rate price” could definitely go up in the future.

What about $40k? $50k? $100k?

At what point does it become a good decision to take an offer?

It’s hard to say, and I don’t have an answer for you right now. What would be your pricepoint?

3. What If Something Happens to My Site?

As it’s smart to think about situations from all different angles, what if I kept the site for now, but then something happens and I lose my ranking in Google. Or, maybe something happens to my Adsense account, or the world no longer needs security guards because there’s a company that builds super-human droids that take care of all security in public places. I don’t know – but something could happen, and if it does I will kick myself for not taking the offer.

But, such is life. We all make decisions every day that affect our future and we can always look back and wish we did something differently.

I’d rather look at the glass as being half full and aim towards a positive outcome, so I’m not going to be afraid and accept an offer just because something could happen. This is, of course, my own opinion on the matter.

Again, these are just some random thoughts that I wanted to share with you, and I’d love to hear your opinion about it.

What would you do in this situation? Was it smart to decline the initial offering? What would be your pricepoint?

Thanks again for all of your support, and I’m glad you’ve been able to follow me from beginning to now with this particular project of mine.

And, as I wrote, it’s not over yet.

Cheers!

p.s. If you get an offer for your website, know that the terms and conditions of the offer are typically confidential. Don’t just write a post about it or share it on Facebook or Twitter without asking permission from the person who made the offer first. I asked, and the investor said it was totally okay as long as I didn’t reveal his or her name. I’ve been so open with this site since the beginning, I just had to share this awesome news with you.

Other Posts in The Niche Site Duel Series

  • http://www.besttennisracketshq.com/ Austin

    Congrats on the offer Pat!

    My first though before reading the rest of the post is that offer is way too low! When I’m evaluating real businesses or properties (my day job) we typically are looking to buy/sell in the 2-4 times cash flow range. If a business/property has significant upside potential (i.e. an additional 39 States to pose) we sometimes look to pay/receive up to as much as 6-7 times cash flow.

    Successful businesses, sites, etc. aren’t the norm so don’t go and undercut yourself and sell for even $25,200! You should keep working the site, improving it, generating revenue and look for that 6 figure payday down the road!

    Great Job!

    ~Austin

    P.s. NEVER accept a first offer!

    • http://zachcrawley.com Zach Crawley

      I totally agree, I would make sure the sites at it’s fullest potential before thinking of selling it.

    • http://moviescrunch.com Manikandan

      Rightly said. What is the best thing is “Just wait for few months to know about the real value and other offers”. So that Pat can get some excellent ideas on selling that particular site. Cheers :)

    • http://www.jasonloveslife.com Jason Love

      As I am writing this comment it is obvious that Pat made the right decision, but I am not sure if I could resist the money since I am currently living pay check to paycheck.

      I would consider just taking the money and taking some time away from anything else just to work on another site to hopefully sell or to make passive income. It would be a hard thing to pass up for me.

      As we all know and as you mentioned Austin, it is important to get the value of the site. I hope if I ever end up in that situation I make the right one.
      -Jason Love
      http://www.jasonloveslife.com

  • http://www.manwithgirlname.com Kelly | Man with Girl Name

    Hi Pat – Definitely the right decision! I’m no business nut, but he should be offering you way more than the $10k. The fact is, the site has a lot of unrealized potential, and he’s only covering the first year’s income. You were right to check other websites of parallel performance and to compare.

    • http://help-pay-bills.com Clare @ Help Pay Bills

      Kelly, Pat, Zach, Austin – I totally agree with you all here.

      I would be seriously tempted if someone offered me $10k for a site, especially if I really needed the money as right now I DO!! It must be hard for people when they know they could earn more, but could really do with money now, and I bet investors get a lot of bargains this way!

      However, as Kelly says, the site stil has LOADS of unrealized potential, and you need to explore that and see how it works out for YOU before considering offers. and Zach too – totally, get it absolutely rocking, and THEN see how much it’s earning and THEN consider selling it.

      Only exception to this would I guess be if you’re not that into the niche, and not motivated to work on it – but even so, it’s the system and process most marketers are interested in, well for me anyway, I can see opportunity in lots of things and its THAT that excites me as well as the niche itself. :-)

      Well done Pat – for getting the site to such a great place that you got the offer though – this whole series even though I came to it super late, has been so, so helpful :-)

  • http://www.midlifemagazine.net Shari

    Pat, that’s wonderful! It’s an amazing new business in itself – buying and selling web sites. I agree with your decision for what it’s worth but it sure is tempting!

  • http://experimentsinpassiveincome.com Moon Hussain

    Hi Pat!

    First of all, congratulations! Seems like your hard work was already paying off but to get an offer like this is amazing.

    I do think you made the right decision in not selling your niche site for $10,000. First, you’re not in a dire situation where you NEED that money right away. Second, as you have mentioned, majority of the income produced from this site is Google Adsense.

    With some affiliate and ad marketing, I’m sure you could take that $700-$800 and turn it into $1000+.

    Not gonna lie, this is pretty awesome. Go Pat!

  • http://DefyStats.com Melodee

    Awesome, Pat! That is wonderful and encouraging for us who are still pressing to get to that point. :) I wouldn’t sell it much for the same reasons you mentioned and yes, it was smart to decline, I think the value WAY exceeds $10k!

    Thank you for being transparent!

  • http://realestatecareermentor.com Marty Green

    I think your math in Bang On Pat, but giving in and selling it at this point I believe would be the wrong way to go. You have put lots of effort into it and it now runs on “auto pilot”. Why part with such a good thing?

    I agree that when an offer gets up to 50k+ then I’m definitely listening and thinking about it more seriously.

    Congratulations on the offer though, it’s great to know that people are interested!!

    best

    Marty

  • Fred Holmes

    Any serious investor would entertain a counter offer and likely actually expect a counter offer just to establish the boundaries in the negotiation.
    A ‘cold offer’ coming as this one did, is a feeler, intended to elicit a response by which the potential investor can ascertain the ‘temperature’ of the recipient or potential seller.
    If this were “Skype” and the offeror were “Microsoft”, you can be sure that the initial offer was significantly less than the final eight and a half billion.
    What you’re passing up is an opportunity to evaluate the bona-fides of the person or entity making the offer, and what the potential $10 K might enable you to do with the site as business partners, each having similar goals and areas of expertise.
    Not saying you were hasty in declining the offer, but perhaps an opportunity not considered as an alternative to an outright sale might have been mutually beneficial.

    Just food for thought.

  • http://www.flipwebsites.com Eppie

    Pat,

    Congrats on the offer and the wise decision (in my estimation) to hold on to the site. It’s a solid earner and I think it’s well positioned to keep earning for a long time.

    That said, 3x annual revenue is definitely not the market rate for AdSense sites, particularly if they have a short earnings history. School-grants.org sold for just under 24x monthly net revenue, despite a solid earnings history (https://flippa.com/80874) and this CNA Training site sold for around 14x monthly (https://flippa.com/103100), though in fairness it’s earnings history was much more varied.

    Right now, for a site with under 12 months of earnings history, 18x monthly net is usually considered a strong offer.

    In your case, however, you’re an unmotivated seller and you didn’t initiate contact, so a buyer should expect that they may have to pay a premium in order to get you to let go of the site. I just don’t think it’s right to put the notion that 3 years annual earnings is a realistic number for most of your readers, since they would be very hard pressed to find buyers at those rates.

    • http://informationsecuritytraininghq.com/ Mark Kelly

      Good info Eppie I concur with your findings based on my observations of Flippa and other sites. Especially with the extreme variability of Google algorithms I’d be shocked if anyone would pay more then ~ 15,000.

      • http://www.flipwebsites.com Eppie

        The other factor to consider is the increased competition that exists by virtue of the fact that Pat has shared how profitable the niche is. In order for someone to be willing to pay a big multiple, they need to have confidence that the site’s traffic sources won’t vanish any time soon.

        There’s much greater risk of search traffic drying up because a competitor engages in more link-building. The built-in advantage of an unknown niche has been removed.

    • http://vandelaydesign.com/blog/ Steven Snell

      I have sold several sites in the past year (I think 9 sites in 3 separate transactions) and from my experience and research I have to agree with Eppie that 3 years of income is not very typical as a selling price for a newer site. When I had listings on Flippa most of the responses and bids that I got were in the 10 – 18x monthly income range. Considering it was a cold offer $10,000 doesn’t seem that low. Most people that buy sites that way really try to low ball. That said, I think you made the right decision in not selling because if you can earn $800 per month at this early stage you are in a really good position to see exponential growth over the next year or two. If you get those other pages on the site like you had mentioned and get those ranking well and bringing in some traffic, plus with some other monetization methods you have a lot of potential to make a lot more.

    • http://moviescrunch.com Manikandan

      Excellent info Eppie. Even I got few ideas from your message. I think Pat should wait for some time and find the real value of that particular site. Cheers :)

  • http://pennyonthefloor.com mike

    Where did you find the info on 3 years of income for a sale price?

    I’ve yet to sell a site on flippa, but I was under the impression that you can expect 4-6 months of income as the sale price.

    I think $25K would be nice, but I’d probably still hold onto the site and keep growing the monthly income.

    • http://www.campaigntrailyardsigns.com/ Ben Donahower

      Agreed. While I think you made a good decision not to sell, $10,000 is a pretty good multiple of your monthly income for an adsense site.

    • http://www.mattpaulson.com Matthew Paulson

      I don’t think anyone gets more than 12-18 months of income on Flippa. I’d guess a lot more sell for less than that too. You might get 2 years if you’re working with a private buyer, but it’s a very rare occasion for anyone to get anything more than that.

      • http://www.flipwebsites.com Eppie

        I sold a site with zero claimed revenue for $10k via Flippa. I’ve also seen plenty of sites sell for more than 2 years revenue… just not AdSense sites with a few months of earnings. 12-18x is definitely Flippa’s sweet spot, but it’s definitely possible to exceed that number.

        • http://pennyonthefloor.com mike

          I’m intrigued. I’d like to flip one of my sites within the next couple of months – just to gain the experience and see if it is something I can make money from moving forward.

          It currently earns around $80-$100 a month between adsense and the ebay partner network. I was expecting 6 months earning – but 12-18 would be nice.

          I’ll be reading though your site tonight. Looks like a lot of useful info.

          Mike

  • http://www.twitter.com/iannuttall Ian

    Nice offer, Pat. I think the fact you’ve built the site to such an income in such a short space of time is amazing. In terms of pricing though, I think you’d be lucky to get $25k for it.

    Most investors at that level need to see a proven track record of income for a substantial period of time and I’m not sure many people would pay 3x annual revenue for such a new site. If you are serious about selling in the future, there’s loads of information on this at the experienced-people.net forums.

    That said, your niche site is very inspiring and it shows that if you pick something and focus on it, you can get great results very quickly!

    Can’t wait to see what happens next with your site.

  • http://www.yfncg.com Matt

    Congrats Pat! Even though they were low-balling you on the price, it’s a great feeling get offered such a large chunk of money. I’m sure there are many more great offers heading your way in the future.

    Getting an offer like this can be a stretch goal for us in the Niche Site Training program (which, by the way everyone, is awesome!)

  • http://www.twitter.com/laurenrpeterson Lauryn

    Congrats on the offer and making a sound decision as to whether or not to go for it.
    I recently sold my first site on Flippa and I am considering whether or not to develop income by creating sites specifically created for selling to others. What will matter is the level of passion and/or devotion I’ll have to the niche I build the site around.

    Good luck!

  • http://www.low-caloriediet.com Tory

    Good call Pat! I wouldn’t have sold either. Now, if it was just a thin affiliate site perhaps, but I think you’re on to something with this site and it could really grow. It will be interesting to look back on this in a year or so to see where your security guard site is at and to compare how much money you would have lost (or made) had you sold it. Future post idea to put in your calendar! :)

  • http://zeropassiveincome.com Zero Passive Income

    Nadia Bjorlin

  • http://EminiMind.com/about Tim Racette

    Awesome Pat! Given the explosive growth of the Smart Passive Income blog, I would also take in account that your Security Guard Training website income will also continue to grow so using $700 as an estimate of monthly passive income down the road seems to be a pretty conservative number.

    That being said I think your niche site duel proves that once you find a dynamite “niche” the profits will roll in if you produce high quality original content.

    Truly an inspiration pat!

  • http://zeropassiveincome.com Zero Passive Income

    Congrats on getting that offer! I think you made the right decision

  • http://www.becomeabullionaire.com Jason Rasset

    Hey Pat….

    At first, I thought you were referring to this blog..(SPI), that would be a crime to sell out now! :)
    I think that I like your analysis, it is pretty comprehensive. Obviously, you have an affinity for the site as well. Although, it has been said to not get emotional with our investments, but you know how that goes.

    I think this is the correct decision… and I have two simple reasons:

    You are young (also having a decent current income gives you current security..no pun intended.

    But even more so, is the Internet is still in it’s infancy, the niche site may become a constant money tree for you or even a household name someday, depending on which direction you take it.

    It’s a tough but good problem to have….I think the real benefit is the reinforcement in
    your abilities and by receiving that offer it only proves again and again, that you can “create” whatever you want.

    Good Luck!!

  • http://www.geekface.co.uk/ Geek Face

    Pat this is brilliant news but I think you are doing the right thing. if you were just sat on the site doing nothing with it wondering whether the annual hosting fee was worth renewing or not that would have probably been a good time to sell @10k :)

    Fact is you’ve got bigger plans for it. Its great that you’re looking to diversify the sites revenue streams. Being overly reliant on just adsense can be a mistake particularly if Google just randomly decides one day to revoke your account.

    Have to say though $25k would be tempting particularly when you consider some of that money could be reinvested back into generating further passive income streams, apps, membership programs etc.

    Good stuff.
    Cheers

    John

  • Scott

    Awesome post about your decision making process Pat and congrats. I agree with the others that $10k is too low. However, what if you took that $10k, created ten more niche sites and sold each for $10k, and continued. The power of compounding and expanding may be greater than the potential of this one site.

    That aside, I know you are working on 10 other niche sites and you have the monthly income to launch as many niche sites as you want already, I’m just looking at the other opinion.

  • Gavin

    Well done Pat, awesome news. You definitely did the right thing by declining the offer.

  • http://www.internetentrepreneurconnection.com Hector Avellaneda

    I knew it! Someone tried to buy your niche site. That’s awesome Pat! I think you made an excellent choice and you definitely did a great job at doing your research. I think anyone else who was motivated by the money would have accepted right away.

    You definitely think you did what any sounds thinking entrepreneur would do – “was the income worth the ROI?

    Way to go Pat. Your results speak for themselves, man!

  • http://www.americanhousingcrisis.com Stephanie

    Congrats!

    I couldn’t agree more that the offer was far from suitable. At this point in the security guard site construction it is just not worth it to bail out without watching your hard work reach it’s maximum potential. When you have ideas that haven’t been given a test run, which could potentially create further income, you’d be selling yourself short. I’d keep the site running with more enhancements (adding the other states) and watch it continue to grow. For now, relish in the moment for what it is – a great accomplishment and an ego boost. You totally deserve it!

    Besides…I like reading about the new additions to your niche site that prove to be beneficial. Your niche site news is a boost to progressively enhancing & testing new tactics on mine.

  • Michal

    $10k is pretty low offer based on current income (and I’m not even talking about the potential) If you work on it, you might end up selling it for 70+k in a year.

    The question is: What would you do with that money? If you sell such an asset and then spend money on whatever important (education, housing, vacation …), it’s a dumb decision. Unless you NEED that money really hard. Wouldn’t it be much smarter to finance all this stuff from steady passive income stream instead of one big paycheck?

    I think selling may be reasonable under 2 conditions: a) the growth is over and all metrics are at maximum (you’re far from such point) and b) you have an opportunity to invest that huge money with at least same (or preferably higher) ROI.

    Otherwise, it makes no sense to me, no matter what the offered price is.

  • http://www.blogdefined.com/ Pankaj Gupta

    I will always reject the offer as you have done and specially if you are knowing that your niche is one of the best ;) . Good & Smart Decision.

  • David

    It may have been a decent offer. I’d say 3 years profit is a little on the high side. Normally, I’d turn down something like that myself, but in your case, it might be financially smart to consider it. I’d prlly hold it if I were you too. It’s more of a teaching tool you use for your real money maker, this site….

    The reason I say this is because you have posted about your niche… There are already copycats making sites for the exact same keywords since they see it’s profitable. All it takes is someone with a little better seo skills to outrank your site. I’ve considered it, but I’m too busy with other things :).

    Oh, and offers are not confidential, you can tell anyone you want. The buyer may not like it, but it’s up to you. Always cool to know you can liquidate your site for 5 figures if needed though… congrats

  • Wes

    Absolutely the right choice, in my opinion. Think about it. You aren’t even finished with it yet. What will it be worth once you roll out all 50 states? I would bet that the initial offer would have been significantly higher had you already done that. Tack on the additional ad revenue at that point due to more users (and higher quality info targeted at more people) and it’s a no-brainer.

  • http://www.ninjablogsetup.com/ Shawn Swisher

    I agree with what most have already said about Flippa. Don’t expect to get 3x annual earnings on that site. There might be a few here and there that bring that, but for Adsense sites I would expect at most 12-18 months worth.

    • Michal

      True. I myself buy there quite lot and from my research (only quality sites with proven organic traffic sources and steady incomes), the market valuation on Flippa is 11,8 months on average (while only 30 % of sites being above 15)

  • Matt

    Congrats Pat! First time commenter and this post got me out of lurker mode. You definitely made the right decision and I think your site at this time is probably worth more around 5x revenue or $42K as a starting point. Sure, there are different ways of determining value, but given that it’s still on a growth trend, that you’ve done so well so far, 10K is a ridiculously low offer. Heck, I’d pay that for it; maybe even put it on a credit card if I had to…

  • http://DNAnews.org/ Rich Hill

    Hey Pat,

    Great job in such a short time. The site looks good and your Alexa is killer. Keep putting that state data up and Google will love you. One thing I would do asap is to extend the domain registration out 2 or 3 years, even if you are going to sell it. It helps with the authority value, or so I am led to believe.

    Congrats.. I gave the security site a tweet out from @linkmoneydotorg

  • http://www.FamilyEyeCareTips.com Michael

    Congrats, Pat,
    This is your first such kind of offer and you’ll definitely have much more of such offers.
    Regarding your decision… maaaan are you kidding? Of course you made the right one. SecurityGuardTrainingHQ is too young and too potential to be sold now. Hey, did you see you PageRank? It’s 0 (ZERO), and with your growing speed after 2-3 Google PR updates you PR will be at least 2 or 3. Also you may try to count your income dynamics to discover your profits from this website in 3, 6, 12.. month.. Okay,… that’s enough.. I’m sure you’re too $mart to believe that the end of the World will be in December 2012, so wait till next summer.,, My forecast to you: you’ll get 6-signs offer until you celebrate 2-nd anniversary of SecurityGuardTrainingHQ ?

    Cheers,
    Michael

  • http://getbusylivingblog.com Benny

    Good thing you declined 10K. Facebook didn’t take the early offers and selling. Look where they are now? Well I know your site isn’t the next FB but I’m sure you will grow it so you’ll be making double what you’re making now per month from it.

    Awesome man!

  • http://www.kidsiphoneapps.net Pavel

    Thanks for sharing your logic, Pat.

    I think learning how you think about these things is ultimately more important that the actual decision.

    Have you ever sold the website before? If so, would anyone else be interested to know how it’s done? I mean there are so many things to consider – transfer of the domain name, code behind the site, package. What happens if the site on a package with a bunch of other sites? What about Adsense – does the person simply replace the code on the site and point to his own publisher’s ID?

    This info could make great post (hint, hint). :)

  • http://packerbackers.net Bryan

    Pat, I don’t think I’ve read one comment that said you should’ve sold the site for that price, and I’m not going to be the first! Your income could easily increase by 50% or more in the next 6 months from the site, so I think it’s more interesting to hold on to it and see where it goes.

  • http://philfaqs.com Dave Starr

    An interesting question. I might be inclined to take an offer of $25,000 or so, but very much dependent upon any restrictions. Example, if the purchaser demanded a non-compete agreement or not. Once you have the formula and all the research, contact info and such put together as you already have (and are working on, like your 50 states database project), you could easily start another site in the same niche and compete very successfully with the original site, as long as you were free to do so.

    You know what amazes me the most? That a person has $10,000 in their pocket and wants to buy an existing site like this … there is nothing secret, exclusive or particularly unique … you have been very open about all that’s gone into the site … for $10,000 I could buy a heck of a lot of links, outsourced content and such and build several sites in the same or a parallel niche.

    What I have found in a very narrow niche … GPS tracking for commercial fleets … is that the more sites start up, the more traffic there is for all.

    The idea of owning ‘the’ one authority site in a non-exclusive niche is backwards, in my point of view. But, hey, that’s just me ;-)

  • http://www.underageblogger.com/ Mohamed Idris

    First of all, let me join everyone else in congratulating you Pat! This is really impressive!

    Personally whether or not I sold the site now would depend on whether or not I had another project that needed some capital to start up that would generate a higher ROI than the security guard training. In other words, the only reason I would cash out (other than spending on the family and what not) would be to put that money into a more profitable venture.

    I think, however, that you made the right decision in keeping the website because of the fact that the offer was too low and because of the fact that I am not aware of any other projects that you are working on that REQUIRE $10K.

    Also another point I would like to add is the fact that you are trying to build passive income. If you sold the website now you might get some cash but you would no longer be receiving a check every month. You also would not be able to improve the cash flow on the website.

    All in all, I think you made the right decision. You definitely did your homework.

  • http://www.chipsawayshrewsbury.co.uk Stuart Williams

    Good news Pat. As others have said, l think you’ve definately done the right thing by holding on to the site. It must give you a good feeling inside to have an offer though, to know that another business considers your work to have a value. Anyway, if you sold it, you would have to change your blog to smart capital income! lol – Stuart

  • http://www.pimpmyfinances.com rob

    Hey Pat,
    Is there a security guard training manual from amazon or clickbank that you can sell on you site?

  • http://easysmallbusinesshr.com/category/podcasts/feed Dianne

    Love it; congrats!

    The offer is much too low given the growing passive income that you can make on the site. You’ve only touched the tip of the iceberg with income on the site, so you made the right decision to keep it; at least for now.

  • http://wellnessinthenow.com Mitch Straus

    Congrats Pat! I wish I could say i was surprised by this. You have an excellent niche site and a top Google rating. You’ve also come up with some excellent ideas as far as monetization. This site has a lot of potential for growth.

    That said if I was in your shoes, I would assume a 20% year over year growth rate for the site and sell it at the standard 3 years multiple. It works out to just over $40,000 with that growth rate. This would allow you to start multiple niche sites and the chance to earn exponentially more passive income.

    You were totally on point in declining the initial offer. The only time I could see you accepting it is if you were tight for cold hard cash. Your income being what it is I highly doubt that is the case.

    Again, Congrats!

  • http://peggybaron.com/blog Peggy Baron

    Hi Pat,
    Oh boy, you had me at “son’s education”. With one in college and another college-bound in a year, the initial offer would have really tempted me. But you’re right, it’s worth a lot more and your reasoning and projections are valid.

    Besides, that wouldn’t even cover one year of tuition. :/

    Thanks for the share,
    Peggy

  • Incomeproducingasset

    Pat you certainly are an expert on many things online. As far as a multiple goes, it’s closer to 1.5-2x annual net income. A 3x multiple is pretty high. I’ve heard others say 10-15x monthly earnings. There is some upside for the anticipated growth. I might even be a buyer, but I’d be somewhere between $10-25k

  • http://www.flightpathmultimedia.com/ Allen Foreman

    Pat,

    You made the right business decision.

    1. I would finish the site with all states, continuing to use my V.A. and dedicate my own time to develop the Affiliate Program.
    2. Launch the Affiliate Program and let that run it’s course for 4 quarters to see what that yields.
    3. Take the total revenue number, multiply it by 3 and then I would have the most accurate selling price.
    4. Only then would I consider selling it.

    Much Success,

    A.F.

  • http://teeballbaseballblog.com Tom

    Pat,
    You definitely made the right decision. The offer was way too low. The buyer could make off like a bandit. Continue to do your due diligence with future offers. Have your price in the back of your mind and until that price is matched don’t consider anything less.

  • http://www.rhythm-hub.com Steve

    Wow that’s great stuff…! I think I will revisit the series again…Funny enough I’m reading the Fastlane book right now and it seems you are applying alot of what is written in that book. I agree keep it running and see what happens in another 8 months..

  • http://www.lazybastardlife.com Jason

    Awesome Pat! Definitely the right decision not to sell. Besides the offer being may too low, you’re in the business of passive income. Keep this for your portfolio. Even if the site maxes out at $1000/month, move one and create another site and see if you can do it again.

    Most people dream about eventually building up a site to this type of income over a few year period, you’ve done it in 8 months. Congrats!

  • http://www.thewisebuck.com Mike

    You’ve built an income producing asset my friend. Low cost, low-maintenance. you’re officially in the driver’s seat now.

    You’ll be able to sell it for 6 figures before you know it. (And you know it) LOL

    Incredible when you think about it.

  • http://www.mattpaulson.com Matthew Paulson

    I’ve gotten a lot of “offers” for my websites, but the interested buyers are never serious.

    • Pat

      This was a serious offer, I believe. The buyer and I have been chatting and throwing around some numbers after the initial offer.

  • http://www.dividendninja.com The Dividend Ninja

    Hi Pat,

    I enjoy your blog, and looking forward to meeting you in Chicago in October :)

    I think you definitely made the right decision! If you can realistically earn $10K in a year for a low maintenance site then its worth keeping for sure. That doesn’t include the idea that the site may grow 10 fold during the year, and you may even make $50K or even a $100K from it sooner than later. If you sold it, you would have sold out :)

    Keep up the good work!

  • http://wordpress-schools.com Eunus Hosen

    Congrats Pat! Right decision you’ve taken! Don’t sell it even if you get an offer of $30k for now.

  • http://moviescrunch.com Manikandan

    Hey Pat,

    Once again you showed us a real exposure on how to take decisions while getting offers like this. What I do in your situation is, I just hold the website for few more months and monitor the earnings from both Adsense and affiliate sales. So that we can find the real value of our site. Keep going. I am happy to follow your path. Take care n Cheers :)

  • Omar

    Sell at $15,000 – $20,000….why?

    a) Most adsense style sites won’t sell for more than 12-15 months multiple given that they rely heavily on Google.
    b) Your #1 listing could very easily become a #12 listing 3 months from now if some algo change occurs
    c) Has not been branded, does not have a community and is not yet a credible resource for actual training tips, safety tips, etc (articles written by people in the field)
    d) Anyone with better SEO tactics or black hat tricks could oust you from the #1 to the #2 or worse hurting your overall revenue

    e) Imagine how many niche sites you can develop nicely with say $15,000? Create 5 niche sites, brand them with logos, hire some writers, etc

    I would definitely sell for $15,000 and up. $10,000 is too low, but given the type of site it is, who knows how long it will survive in its current state and I doubt you could get more than $20,000 given the type of site it is.

    Just my 2 cents

    PS – thanks for sharing this with everyone…its what I love about your site!
    Omar

    • http://www.antphilosophy.com Mikael Rieck

      I agree with Omar’s 12-15 months earning when we’re talking a new Adsense site. I wouldn’t sell either but I don’t see how you came up with 3x annual income?

      /Mikael

      • Pat

        I asked a few close colleagues that have experience selling sites (they don’t use Flippa, bids are too low, they say). They may not have known my site was a “just adsense” site at the moment, so that may play a factor. I definitely want to build the site out more and add income streams so I could get a higher multiplier, possibly.

        • http://[email protected] The Financial Blogger

          I actually agree with Pat; keep the site

          Most people are afraid of the “instability” related to the web. They are scared to see the traffic or income going down suddenly. The truth is that they are afraid because they don’t understand how internet works.

          I work as a financial planner and I face a similar issue with some of my clients who don’t understand how stock markets work. Because they don’t get it, they are under the impression that it can collapse at any moment.

          I actually like this industry as I am able to buy websites using a 12 to 36 monthly income multiplier and earn steady income with them ;-).

          The truth is that you have built a solid website:
          - high quality info
          - keyword rich (without being spammy)
          - a lots of backlinks

          It is scary to see how Google is now the ultimate authority with search engines but some factors will remain important overtime. And you got 3 of those factors in this niche website.

          Congrats on getting the offer but unless you get 40K (which is about 4 years), it’s not worth it for you to sell.

  • http://ht Bjorn

    Hey Pat, I think it is a wise decission, given the growth-curve of the niche-site, and the current marketvalue.
    Good luck on even increasing your income with it ;-)

  • http://www.techcafe.com.au Vince

    That’s fantastic news Pat. Very happy for you.
    I guess if you are interested in taking the site to the next level (make it an authority site) then yes keep it. Else you could sell it for 15K+ and use the money as seed capital for other of your projects.
    Relying heavily on Adsense seems a bit too risky?

  • http://www.traffic-is-king.com/10-traffic-rituals-you-should-do-after-every-blog-post/ Samuel

    Definitely smart not to take the offer. There is way more potential to make more money from the site than adsense. Was thinking about pay per call ads that you can put up there by local or national security guard training companies or related CPA offers. As far as traffic maybe you can convert some of your security guard training tips into YouTube videos and get some of that YouTube Traffic. It’s good that you are getting good search traffic however if you can get some social media involvement without getting too involved it will help build the site authority. What do you think?

  • http://bluelambda.com.sg Francis Teo

    Based on my experience flipping, buying and selling sites on Flippa, the norm for an Adsense site is about 10 months profits and not 3 years.

    Unless you plan to develop the site further in terms of other forms of monetization, I think 10-15k is a good offer, I would take it.

    As another commenter stated, you might lose the organic traffic as Google tweaks its algorithm.

    Just my 2 cents.

  • http://gamelicker.com Gamelicker

    I think it all depends on the actual “money” situation. When you have some money to get by and do not need more immediately, it is a wise decision to decline the offer as it is too low. However if you needed money desperately and these 10k bucks could get you out of trouble it would be wise to sell. But as you generate some income each month and do not need money badly I would not sell at this point. With a directory feature, affiliates and direct advert sales you can generate even more money and sell it when it is finished.

  • http://www.successmotive.com Peter Hutyr

    I think the best thing to do is “do not sell”. People sell websites for various reasons. As for me, I would sell if:
    a) I don’t want the site anymore due to boredom or lack of excitement in its agenda
    b) The niche is saturated and there’s a lot of competition to get a piece of the pie
    c) The website is growing too fast for me to handle – now, this is possible if I have a very high traffic website that wants to be acquired by a major player like Google, Yahoo – you know what they do, hehe.

    This is what I would suppose for Pat’s scenario – He should not sell because the site is still profitable and requires less work to manage. Moreover, he is dominating the niche, being #1 on Google and has not yet explored other income sources on the website especially the directory listing thing, which I liked very much.

    If I was in Pat’s shoes, I wouldn’t sell at all.

    -Peter Hutyr

  • http://www.youngprepro.com Onibalusi Bamidele

    Hi Pat,

    I think what you did was wise. Your site has a bright future and a great potential of you doubling your traffic and income in a few months so selling it now for that price might not be the best decision. I’m sure you will get better offers for it in the future :)

    Thanks so much and have a great day!

    -Onibalusi

  • http://mywahm.blogspot.com/ Maria (WriterGig)

    Pat, from what I’ve seen of successful website sales, 12 months to three years’ revenue is typical, with many falling in the 12-24 months’ range. Thus I think the offer you received was not far below market value at all.

    That being said, I would not have taken it, either. It’s worth more to you as an asset (which will most likely grow with time — Google loves sites older than a couple years) than the $10k.

    Sometimes, when there is little choice involved — i.e. the recent take-it-or-leave-it Demand Studios WCP buyout offers — it does make more sense to sell an asset using that figure as a guideline (12-36 months’ revenue) than not to, if there isn’t an option to hold on and continue receiving the passive income.

  • http://www.speckygeek.com Pritam @ Specky Geek

    Hey Pat, Congrats for your latest success. Now that you have turned the offer, the $10K is the capital amount for this site. If you invest an equal amount in some other financial instrument or real estate, what will be the return? At 15%, you get $1,500 per year. How much does the site give you? I guess your monthly income from the site is more than enough to compensate for the added risk. I am sure you must have done this calculation before turning down the offer.

  • http://increasingworkplaceproductivity.net Bojan

    You did a right thing for rejecting that offer. On the other hand, if it was double the number, you sure should sell it from my point of view. And free up some more time for different projects.

  • http://www.fyourjob.com KP

    Great post Pat! I’m been following the security guard training from the start and think it’s great you’ve seen such success so early on. I was recently thinking about if I’d sell my current most successful niche site and what it would take me to do so. Your post has given me a lot to think about and shown me how to look at it logically and objectively if I were to get an offer.

    I’m sure you’re going to get a lot more offers for SGTHQ in the future.

  • http://www.virtualbusinesslifestyle.com Chris C. Ducker

    Hi Pat

    Botom line – Everything worth doing in business is worth doing for the long-term, as far as I’m concerned.

    If you work on something for a month, 6 months, a year… whatever the case may be, the fact of the matter is that good, sustainable businesses are not built overnight, nor do they make you money overnight.

    You’ve made the right decision, in my opinion.

    The fact that you bring your family into this is also an important point here. Your family (and we’ve spoken on this on many occasions, obviously) is, and should be the NUMBER ONE guiding light. Your number one focus. I know it is for me.

    Keep doing what you’re doing, buddy. Lots more ahead for you, I’m sure…

    Best,
    Chris

  • http://www.earningdiary.com Lakhyajyoti

    It is a wise decision not to sell your blog.The more risk you take the more profit you can make.Thanks for sharing it with us Pat.

  • http://www.dubai-information-site.com Sunil from The Extra Money Blog

    in your case most definitely, decline it, grow the EBITDA and sell it for a higher multiple when the appetite is there. in my case, back in 2007 i sold an ecommerce website that i created and grew myself for $250,000. it was making 60,000 / yr, so around 4 times EBITDA or multiple. i knew something others did not, which was that i was growing too fast for my own good, and had trouble sustaining the high level of customer service and delivering all products that are ordered. sometimes it makes sense to get out while on top, but in this situation i’d keep it until income is maximized, and then sell it at the highest possible multiple. i have also sold 2 niche websites in the past. with those, one thing i personally do is tally up all the hours i have invested in one particular venture (in the niche site) and then divide the selling price by the hours invested to get my effective hourly wage. if this figure is $400 or more, i usually pull the trigger providing that the site has reached a plateau in terms of traffic / earnings growth. it is a refreshing feeling however – i am with you Pat!

  • http://buzzraid.com Buzz

    I agree with you on not selling and have seen websites with less earnings and less potential going for $26,000 and $45,000 on Flippa in recent months. The website now at this moment may be worth closer to $10k but I think in coming months with the new expansions and maybe some other revenue sources it could easily get $50k from a private investor or possibly even on Flippa.

  • http://virtuousgiant.com Nathan Hangen

    It’s like playing Monopoly. Unless you plan on being in the security guard business for the rest of your life, sell Baltic Avenue so that you can buy Park Place. Then get some hotels on it.

    • http://www.fyourjob.com KP

      Totally agree! I still think 10k is on the low side but 20k might have been worth paying attention to.

    • http://www.smallbusinessunleashed.com Chris Green

      … and try not to end up in jail ;)

  • http://www.spoilersguide.com/ Matej

    I think that was right decision given that most of your income comes from Adsense at the moment so there’s an opportunity to monetize the site even better.

    10 000$ isn’t that much, not even 12month worth of income and it’s definitely better to try out the whole potential website has before deciding to sell.

    Playing only SEO can be risky, because there’s always someone better in the game, although working at least 4 more months to see the possibilities is definitely worth it IMO.

    • http://www.spoilersguide.com/ Matej

      *little over 12 months worth of income :)

  • http://www.rainmakermom.com Jaime Rowe

    I agree Pat. It was a great idea to not sell this time. You have so much potential with this site. Just set up a plan to eventually sell. How much is enough? You want to sell when it is “hot”. I have seen where people (with brick and mortar businesses) wait too long and they lose “that window”. I look foward to watching how this pans out. I will be sitting by my computer with popcorn….

  • http://www.whysoblu.com Gerard Iribe

    Way too low and am glad you declined. Have you used those various online “how much is my website worth” tools that are out there? You’ll see that your site is worth way more than 10k.

    Ask them to come back when they’re ready to make serious 6-7 figure deal. ;)

  • http://www.funtastisch.org/ Funtastisch

    This shows how good your work is. Gratulation!

    It was definitely the right decision to decline this offer!

  • http://www.smallbusinessunleashed.com Chris Green

    I wonder how many of the people who commented and said “good decision” would have sold for 10k to get the cash in quick.

    If they were being REALLY honest?

    • http://www.smallbusinessunleashed.com Chris Green

      It is a great, well thought out decision by the way. I just thought it was worth asking the question.

    • http://mywahm.blogspot.com/ Maria (WriterGig)

      I would not have accepted the offer. I’d love to invest $10k into owning a site that makes $700 to $800/ month. I certainly wouldn’t sell my pets niche site for $10k and it made $794.36 in April and $804 in March.

      Thus, speaking for myself, being REALLY honest, I stand by my comment that Pat made the right decision to turn down $10k upfront in favor of what promises to be a long-term passive income stream.

  • http://www.zackproser.com Zack Proser

    Quite a thrill I bet. Congrats!

  • http://obtuseangles.net Leslie L. Kossoff

    Pat, I think it was a good decision. First offers always come in low, no matter what, because the buyer is hoping you won’t know better. The best news is, you do! If they’re serious, they’ll come back with a more attractive offer. If they’re not, no loss to you, because you’re still making good money off the site. Bravo, you! You created a win all the way around!!

  • http://passivedisposableincome.com Adam

    I think the $10k was low-ball, turning it down, as I would have done, was probably for the best. Now that you have made the earning details public you start to see some better offers coming in. Knowing you passion for this sites niche, I think you should hold on to it long term. Besides, I have no doubt you will work some more of your magic on it and having bringing in a bigger figure in less time.

  • http://www.goodfinancialcents.com/ Jeff Rose

    Good decision, Pat. I have another site that I run that gets a little more per month that your security guard training site with Adsense and affiliates. I was offered between $15-$25k to sell, but at the time I was barely putting any effort into it. Instead of selling, I decided to take some of the revenues and reinvest back into the site to see if I could grow it more. So far so good…..

  • http://www.MoosejawCoupon.net Joe

    Not sure if anyone mentioned this yet, but I’d love to see the full dialogue between you and the prospective buyer, obviously with sensitive details removed.

  • http://www.makemoneyonlineng.com Adesoji Adegbulu@MakeMoneyOnlineNigeria

    Pat.

    Nice read… and a god decision you made. I trust you on that.

    But… I would have suggested that you sell the site. Why?

    This is because you already have the necessary skills to build thriving niche blogs. If you sell that, you can start another better niche site almost immediately.

    As for me, my business blog is less than a year and I am considering selling it after it one year old. And that depends on how much I’m offered

    • Pat

      Well, not selling the site doesn’t stop me from creating new ones. It’s almost 100% passive at the moment so I have all the time in the world (well, not really – other projects, kid, fun, hehe) to build another site. Lots of thinks to think about, like I mentioned. Thanks for the comment Adesoji!

      • http://www.makemoneyonlineng.com Adesoji Adegbulu@MakeMoneyOnlineNigeria

        Great! Why not offer the site for sale and concentrate on the things. Or better still, reach a conclusion with the buyer that you would be getting a commission on the site yearly. With that something still comes to you. Just a thought :)

  • http://weblogbetter.com Kiesha @WeBlogBetter

    Hi Pat,
    I commend you for carefully thinking this through. And while an cool $10K does sound nice in immediate terms, you’d definitely be loosing out in the end. There’s just too much growth potential. Now, I think if I were in your shoes and I was offer $50K & up – I’d say go for it, definitely. The future isn’t promised and if you made the right investments you could make that 50k work for you.
    Congratulations and thanks for sharing! I know I rarely comment, but I’m always here – I can’t resist reading your posts even when I try :)

  • http://copywriteformula.com/ copywriteformula

    First off, Congrats on your first offer!

    Second, I love the interaction here Pat! I have not checked in on your blog of a few weeks and when I got the email , I had to check it out. This topic is really sparks my interest. TY!

    You have presented a great case and your thought process is the same method I use when valuating websites. The web provides numerous tools to appraise websites, but they do not go past the value of the domain name. It appears that the declination of the offer was the clear choice and stands confirmed by the response from your listeners and, obviously, the numbers.

    • Pat

      Thanks a lot – and it’s good to have you back on the blog, hehe.

      Also, it’s good to know that you clicked over from the email. Sometimes it’s hard to realize that even though people are subscribed via RSS, or see tweets and Facebook messages go out about it, sometimes people need an intriguing email to learn about what’s going on. It’s the most direct way of communication, but of course there’s a fine line between providing interesting and helpful content, and being spammy and wasting people’s time.

      Getting a little off topic here, but thanks for the confirmation and hopefully I could get a bigger offer sometime in the future.

      Cheers!

  • http://theordainedbarista.com/ The Ordained Barista

    Pat,
    Big fan. Literally at 6’8″ 290 pounds I am your biggest fan. I’m a long time (all 19 episodes) listener to the podcast and love the blog, but this is my first time commenting. I remember when you started this project and I wanted to share in the excitement with you—in how AWESOME it must feel to get an offer like that! Your material, and mission to serve people, are a true encouragement and I pray for your continued success!

  • http://www.UnconventionalMarketing.com Mr. Unconventional

    Pat,

    Congratulations, that’s a great testament to the power of quality content. I personally wouldn’t sell it… but I’m all about focusing on long term growth.

    - Dave

  • http://www.twitter.com/iannuttall Ian

    Why would you sell for $10k, $20k or $30k when you pull in that amount every month anyway. Better to build it into a six-figure behemoth!

  • Chris

    Do you like fishing? If you believe you want to continue putting effort into growing it knowing you dont’ want to sell yet, use this as practice for future negotiations. Respond to the offer by sharing you believe a fair price is 3X annual earnings or $25K. Talking is FREE and an opportunity to practice a skill most people are uncomfortable with is priceless as the saying goes. So why not drop your line in the water to see what the market will bare.

    • Pat

      Valuable advice Chris. You’re absolutely right. An entire post could be written about your comment :)

      Thanks!

  • Tricia

    I would have countered for $30k and bargained, not selling for less than $25k.

  • Mrgardener

    It depends on what your business plan is. I have declined mid 5 figure offers for some sites, even if that valuation was ok at the time, just because I dont need the cash right away and I know i can passively earn more.
    However, now I am buildind niche sites with the goal of selling them at around 1 k each.
    Btw, for large transactions, flippa is not the right tool to use. Just contact directly who might be interested. If you know your niche you’ll know whho they are.

  • http://www.robbnovak.com Robb Novak

    Pat, cool post. As a real estate investor who is entering the internet space over the past several years with my focus, the old cash vs cashflow decisions are always fun. To me its always been the proverb of the goose and the golden egg. You can always kill your goose, but the problem is that you always end up needing another one. To keep it, just keeps the eggs flowing, which are always yummy month after month. Eggs are really where I feel wealth is measured as really at end of the day, I dont think people really want more geese….they just want more eggs. To test this, just buy a few geese that dont produce eggs and see how fun those guys are after a few months. Worse…geese that need to be fed a lot to produce no eggs.

    So at the end of the day….. geese create eggs… eggs create cashflow…..cashflow is congealed (sorry egg pun) life… and congealed life = freedom.

    Keep up the good work Pat!

  • http://blog.diasporaresources.org Diaspora1

    Pat,
    Congratulations! Declining the offer at this stage was definitely a wise decision. This is only one of many to come; I believe that you should continue to develop the site and consider selling at a future date.

  • http://bloggonaut.net/ Suicide

    Good decision Pat. I would have done the same if i had a good finicial foundation like you have. with building niche sites, i think it is probably good to think longterm.

    Hope i will have also just a bit of your success one day ;-)

  • http://zingervotes.blogspot.com Darla aka Alrady

    Pat – My last few years of losing home (including rentals) has changed my thinking on risk just a little. So here is viewpoint from someone that is curren
    tly fighting fraud in mortgages and foreclosures and living on the edge. (click on name for blogpost)

    TURning down the initial offer is part of the negotiations. Hopefully you submitted a counter offer they will accept. Personally, I would sell at 12-17K and if here is why:
    1.Economy – everything is in flux no matter what the economists say. Dollar is devaluing and the feds are printing money to cover debt (i don’t do much on my second blog America’s Economy and really should blog about the devaluing of dollar).

    2. Economy – I would use opportunity to branch out just a little. Buy real gold if possible or something that will increase in value

    3. Save some to build additional niche sites. YOu might even be able to compete against yourself, unless it is in the contract that you cannot build a similar or ‘go along’ site.

    4. Maria makes good point about age of website – you might want to build several more domains or buy something that is lower value and revamp it totally and get it simliar to the “sec. guard” site.

    5. 15,000 would be great price but realisitically all values have to be based on the annual NOW not annual later – And later that 20K might be in actual dollar value only worth 10K

    6. Tax impact. Unless you have a trust or something set up now – your dollar coming is actually worth less. If you are wanting money for son’s college it makes sense to set up trust fast so that if you do sell you can maximize the dollar coming in. You probably would want to be absolutely clear on what your plan is with the money…. In less than 1 year you might be wishing that you had every cent available just for survival. With election year coming up stability is something to be looked at.

    So waiting just a little makes sense, so that you have a firm plan for what to do when the decision to sell does make sense – to you.
    With Consumer buying changes, internet changes, monetary changes in current economy – I’d try to get as much as I can NOW, and I would try to set up to receive it tax free.

  • http://itstyle.net/links/ Mats

    Thanks for you sharing this with us, it inspires to build similar sites, because if you have a goal of selling it we know it can be done in the same time you have used. :)

  • http://webanswersearnings.blogspot.com/ SuffolkJason

    Pat, given your track record I’m rather surprised that some people have suggested that if Google altered their algorithm, then you would just roll over and die. I believe, that until recently, you had only added details for about 13 States. When you have details for all 50 States, your Adsense revenue will increase to perhaps $20k per year and that’s without taking into account other opportunities such as your directory and direct advertising.

    By the way, have you thought about the rest of the world? You SGTHQ is number 8 on Google.co.uk for the term “security guard training”. I would be interested in the SGTHQ European franchise!

    So, in my eyes, you have only scratched the surface of the opportunities. In addition, none of the above takes into account the marketing benefit of SGTHQ to the brand that is Pat Flynn. I believe you owe it to yourself and your legions of followers to see just how far you can take you niche site challenge.

  • http://www.internetmarketingwizard.com Bill Zimmerman

    I would have made the same decision Pat. Personally I would sell the site for 20K. I would then use that money to invest in another one of my businesses (or a new one) which could easily make up for the $800/month lost income in a matter of 6 months or so.

  • http://thesisthe.me/ Brad Acker

    You did the right thing. 10k is not much.

    If you don’t need the sum of money now why would you sell your investment?

    The real question is:

    *Could you take that 10k and make more money faster with something else?

    Like you said, the site will only generate more traffic and sales.

    I would at least hold on to it until it’s where you want it to be (sounds like you’re adding a lot now) and then go from there.

    Good luck!

  • http://thecollegeinvestor.com Robert

    I think you did the right thing as well. However, you did omit another risk, that you may want to consider going forward: what if AdSense bans you for some reason, and you need to go with different affiliate marketing companies?

  • http://www.betsizer.com Mike in San Diego

    Pat,
    You need to conduct a discounted cash flow (DCF) analysis which takes the future cash flows of the site along with a growth rate and appropriate discount rate to provide a realistic number for comparison. I will try to email you an easy to use spreadsheet since I can’t attach it here. You can also Google “discounted cash flow” for more info. This is the valuation technique used by many private equity and venture capitalists folks.

  • Alex

    The key word to remember is PASSIVE. If you sell you would not have any Passive Income!.

    good luck

  • http://craftsmanbungalowsforsale.com Clint Wilde

    Awesome news Pat! Wow that must have felt great. Thats quite an accomplishment and I hope you take some time to enjoy your success.

    Thanks for your blog & inspiration & motivation!

  • DenCha

    Great decision on not selling your niche site…once you sell it it’s not passive, nuff sed!

  • http://richkent.com/ Rich Kent

    I agree on not selling. That site could earn you thousands every year for years to come – and even better can become a platform for launching a new training program that could earn you tens or even hundreds of thousands.

  • http://Madisonmason.tv Maxx

    Did you build the site to sell it off or for, as you represent, a stream of continuing passive income? You say you make almost that a year, so why sell? Also, it would appear that with the growth of the net and specific interest you will continue to grow the site. Surely that’s what the investor is considering in tendering an offer. You were right to hold on. Should it all go south by some weird turn of events, you’ve lost nothing. Unless, of course, you’re just tired of dealing with it.

  • http://wp.me/P1o7dN-2 Joe

    Thanks Pat, for the email alerting me to this post. I think you did the correct thing – your skill in building not just the site in question but your business in general shows that you have a special touch. That touch, plus your growing experience, should only help you increase the value of all your business interests. Good luck from bonnie Scotland – miles outside your timezone, but well in touch with your brainzone!
    Joe

  • http://waystogogreen.blogspot.com jaques

    Like the two gentlemen, I think that you did the right thing by not selling. Who knows what the potential income would still amount to in future. I like the point you made about website flipping. I know of people making their living do just that. Thanks for sharing with us

    Jaques

  • andrew

    Hi Pat Congratulation for your first offer i hope you get what you want from this website and i want to ask you about how to earn from Ehow i tried but actually i cant

  • http://coveringtherent.com Ryan@coveringtherent

    This is a fantastic read Pat. 10k was a decent offer but i would be going back with a counter off. 20k for me would be an acceptable figure to accept but i guess our situations are different. I am not currently earnining 39k worth of clear profit from other passive income streams so i guess you can afford to risk this and keep the site.

    Upon reading this you have got me thinking about my own niche site and going by your figures its worth at least 11k (taking into account 3x the value). I am in a different situation to you as I have a full time job and my passive income work is secondary to my job so I would probably take an offer of 11k for my website.

    I think those who have said ‘take the money’ need to realise that you are a different breed to the rest of us. You have a huge monthly income which can facilitate further projects. Furthermore you have just shelled out near 10% of the offered figure for further content writing. With all that in the mix is it really worth selling?

    I don’t think so.

  • Therm

    Ok, gotta be honest, I can’t even comprehend selling AT ALL! I respect your decision, I would’ve done the same (if I was in your position). You make more than that every month, so you’re not hurting for money right now. As far as I’m concerned, any business that’s set up and earning a passive income…you keep. NO questions asked. Because if you BARELY lift a finger to generate that income, what’s the point of selling? Even if they offered 40K, you’re going to make that moreover eventually (without lifting a finger). Also, I believe a sustainable income is waaaaay more comforting than a lump sum, anyday. If one day you just up and decide you can’t/won’t do this internet thing anymore, you’ll still have streams of income on a regular basis. If you sold it, that’s just one less piece of income.
    I say keep the site (forever) and continue to create more (and keep those forever). Unless Google or one of these other gimungus companies come calling, I don’t see a point in selling.

    • http://pennyonthefloor.com mike

      I disagree. At some point, the selling price may be too good to pass up. $40K is NOT guaranteed.

      Who’s to say that google won’t change their algorithm again tomorrow and bump Pat’s site off of the front page of google?

      Niche sites and the search engine positions are very dynamic and ever changing. If you put no more effort into backlinks, eventually you very well might slip out of the first spot – which could result in a huge hit to earnings.

      I’m not saying he should sell. But at some point, an offer could be too good to pass up.

      • http://www.dailydepositsforthesoul.com Henry

        Pat, this is my first opportunity to thank you for all you do for us guys and gals, most of whom you will never meet. The niche site duel has been just what I needed to get off my rear end and start moving forward in a new area to improve my life and my family. Your openness and willingness to give is why you are so successful. Keep doing what you’re doing!

        I agree with Mike that there may come a point when you get an offer too good to refuse. However, don’t let the fear of what might happen with Google (or with any force you have no control over) be your motivation to act or not act.

        I recommend you follow through with your plans to include info for all 50 states and to further monetize the site outside of Adsense sales. Watch what happens to your revenues after 3-6 months. And if you are interested in selling after that, then entertain any fair offers based on those numbers. One word of advice: never accept the initial offer; it is set to open the door for negotiation. Always, Always submit a counter-offer.

        All the best, and keep us posted on how things are going with the site.

        • Pat

          Thanks Henry (and everyone else) for your insight and thoughts. It’s definitely great to see such a supportive community here. I love it!

          Great advice Henry, I’ll definitely remember that, for sure, and you can be sure I’ll keep you all updated. Cheers!

  • http://www.apexgiftboxes.co.nz Diane

    Hi Pat
    This is a most interesting read. I was contacted by a business broker to purchase my online/offline business a couple of years ago, but I didn’t even ask the price, because my business wasn’t for sale. If I had asked the price, I too would’ve had a bigger dilemma, but I love my business and didn’t want to give all this away. Times have been tough, but I think that that makes you dig in deeper and look at what values you place on your business and how you approach it all. To pick my business up again, I’ve done a lot more work on the internet and will continue to do more of this.
    Why give away a perfectly good passive business Pat for just a few $$ when over a 5-10 year period, this could expand and make you a lot more. Besides, by offering a directory, you’ve obviously got more ideas and ways to keep on growing your bases and you haven’t lost interest. Good on you for sticking to your guns, but thank you for sharing your thoughts for us to read and chew over. It’s much appreciated.

  • Garry

    Nice work Pat,
    Maybe it’s like my granddad told me years ago, “All property is for sale if the price is right.” What is the right price? Only you know.

  • John Seed

    WOW, that is so cool…this is the kicker thats going to get me off my duff and seriously get into this way of making a living. Its kind of my best way to make a living as I need to return to my country of orgin Canada, and I am “no skilled” there for any kind of profesional work(really). Its funny,cause one job I could get, is the security guard job(which is a minimum wage job by the way in Canada.(11.00 dollars an hour but rent is like 800 for a bachelor apt i think). Anywho…working as an “English teacher”(said in quotes, cause almost anyone can be a teacher in Japan, as long as you got some kind of college diploma, doesnt have to be in Teaching or Linguistics or Education…but it would be nice)…ANYHOW!!!…For me to return to Canada…Ive been out of the country for like 10 years and well need a way to make a living that would be a self-employment option and I need a way that would be great if I could do it from Japan and just continue doing it back in Canada….answer…smart passive income or affiliate marketing or niche site building/blogging….its the perfect answer for a bloke like me whos been so out of it….i thought about….i read stuff here and there…but havent acted on it much…..this “offer” post…its the kicker….proves beyond any doubt that a living can be made(besides your already monthly and yearly reports…which should be enough on its own)….anywho….thanks for SHARING and being so TRANSPARENT….and I especially like that at the end of the post you…stated that you asked permission to the offerer if you could talk about it.(staying moral and above board is the best way to go, this internet thingy can have a tendency to well make one think you need to pull the wool over folks eyes or not be open…well i get that feeling sometimes….anywho…thanks for showing that honesty and doing things the right way is the right way to do things).’nuff said spi-dey fans?

  • http://www.myboxingfans.com Edgar

    I would have sold it.

    You’re in a niche where your going to build and forget which means after time it will loose its ranked because it wasn’t updated.

    There are millions of people who every day try to build websites/niches what if someone tries to compete with you who has more knowledge or a bigger budget and kicks off first place on Google? You will no longer be making $700 a month how are you going to sell it then.

    I would have used that $10, 000 and build more sites and sell them, the same way you build the security site you can build more.

  • http://betteronlinemarketer.com Jesse

    Pat,

    Congrats on your brand spanking new success.

    Here is my take…

    The power of delayed gratification my friend…

    If a man is willing to pay you 10 grand today, what will he be willing to pay tomorrow if you tell them your stuff is not for sale…

    Perhaps you should continue to feed it more compelling content, links, and more subscriber’s…

    Perhaps you should cash in and start a new profit pulling project.

    The truth is…

    We all want what we don’t have…

    But when a man(or Woman) is in a position of power(or resources) is told what he can’t have…He will dive through fire to get it.

    If you sell it good on you…

    If you hold on to you, that’s cool too…

    Looking forward to seeing what you decide to do either way.

    Until then…

    Keep cranking out the compelling, link-worthy content

  • Ben

    “what if…the world no longer needs security guards because there’s a company that builds super-human droids that take care of all security in public places.”

    Pat, if this happens, the last of your worries will be the extra $10k this site could have brought. I’d say in this scenario, we’re roughly 3-5 years away from Judgment Day when machines take over the earth. God help us all…

    But seriously, I think you made the right call to hold off. Keep packing the site with more and more value and you’ll get a much better offer down the road.

    • Pat

      Oh man – that was awesome, lol. Thanks Ben.

      I’ll keep at it, and I think the site will deserve a design overhaul as well in the future once all of the content is up. What do you think?

  • http://www.patchworkquiltingbusiness.com Pippa

    Hi Pat,
    I have read your whole post but have not had time to read everyone else’s replies so forgive me if this is a repeat of things other people have said. Here’s my analysis from buying and selling, and establishing and selling, several bricks-and-mortar (B&M) business in Australia, and now into internet marketing (hence my passsion for following your site – I think that what you do is fantastic!). PLus I’ve been watching Flippa sales for the last 6 months (maybe do some comparisons there too).
    For B&M, the asking price is usually two-and-a-half to three times annual net profit, which makes your asking price $25,000 to $30,000. Given that there are way less ‘management’ issues with your website than with a B&M business, plus the potential to drive much greater profits from your site, that figure seems way too low. I’d say $50,000 is not unreasonable. However, I should temper this with the fact that I am Australian and our economy is white hot at the moment, and so I come from a perspective of greater business wealth. That being said, the internet is global and someone from another country could see the potential for your site, but it, monetise it a bit more, and resell for much more. I say emphasitically don’t sell. Complete the planned updates, and let it sit for a while, then if you want put it up for auction. Even then you don’t have to sell if you don’t get a good price.
    Cheers, Pippa
    PS And also, your site is called ‘Smart Passive Income’ – if you sell it, you no longer have passive cashflow from it, and isn’t that your goal?

  • http://www.bestbuys4business.com Michelle

    How exciting Pat, this offer has given you an opportunity to assess the direction of your niche site and this week you probably considered some things you hadn’t thought about previously. If you have the time to continue to work on your site and grow it, then I think you should keep it, unless you receive an offer that also provides you with a piece of the pie (ie. partnership) so you continue to reap the rewards plus receive a lump sum – best of both worlds :)

  • http://www.livingauthentically.org Evan

    You don’t say how much work it takes to maintain and how much work it will take to build.

    The other thing to consider is if you could take the 10K and multiply it faster in another way – say by starting 10 sites and telling people what to do that you know how to do.

    And you could decide that you just need a holiday and this chunk of funds would best be spent buying you some time off to spend with loved ones and doing nothing at all.

    I would have rejected the offer without thinking for much more than a second. But that’s me.

  • http://MomsWorkatHome.com Christina Dodson

    Pat, I’ve been following your site now for awhile, but have never commented before. Today, though, I just couldn’t resist. I think you DEFINITELY did the right thing, no questions asked. My main reason is simple and was stated by some of the others – this is a source of “residual” income to you, and we all know that – unlike ‘linear’ income – residual income is based on the law of diminishing effort. So, bottom line, I would think long and hard before I’d ever sell for this one reason alone. There are more, but this one is the biggy for me! :)

  • http://www.vbobville.com VBob

    Congrats Pat. Good decision. And may I mention that that niche site is still a lab for this site and largely responsible for the rapid growth of your community. We are still learning from it.

  • http://www.keith-web-assistants.com Clint

    Hi Pat,

    I really appreciate your works and how you do it publicly. Just to let you know, do I didn’t participate that much in the community, I read your great emails(very helpful in my journey online). Thanks for being Generous to everyone!

    For me is to say YES you did a great decision though, I haven’t in that experience yet, but judging how you think of the future, you really know the risks and disadvantages! And I know everyone will agree, we’ve learned a lot on this decision you’ve made publicly Pat!!

    In my opinion, why it’s RIGHT because.,whatever happens to your site(outranked, crashed,etc..), you already knew how to restore it(another effort though)…and the other thing is.,you can think of many things you can add in the future that this site will profit more than that 5 fig offer!! :-).

    Can’t think of anything but agreeing with YOU..hahaha.. Nice one Pat! Thanks a Million!


    Clint

  • Touby

    That’s great Pat, way to build an asset! I actually think the offer is a fairly good one. I would not pay 3 times earnings for something whose sole source of income is organic search traffic. Didn’t many sites just loose their ranking in the Google “Farmers Update?” I think he was counting on growing the revenue like building a list. Does the site have a list from a lead capture that goes with the sale? For that I could see paying a 3.0 multiple of earnings. Cheers!

    • Pat

      There is a list to go along with it, and the site did survive the Panda update, primarily because the content is not farmed content, it’s 100% unique and from me and my research.

  • Rich B

    Congratulations Pat. I really appreciate your play-by-play presentation here. I agree with your decision to hold off selling the website, at least for now. I’m sure the person who made the offer did the same calculations you did and was either just testing you, or making a opening bid to begin a conversation about selling. I bet you’ll be hearing back from him, and others, with a much better offer later. Thanks for the inspiration you give me. Off to do some Market Samurai analysis…!

  • http://onlineincomelab.com Trent Dyrsmid

    Hey Pat,

    Congrats on receiving the offer. I agree with you that it was too low. Was it an all cash offer, or was there terms to it? If it were me, the terms would definitely have an impact on what I sold for. For example, I sold my last company for $1.2M, but it wasn’t worth that much. The reason I got that price was that I was willing to take 25% down and then carry a note (with 10% interest) for the balance.

    I’m not too sure that I’d be willing to do that with a website though..unless it was coming from a very credible buyer.

    I really liked how you shared your thought process on the blog. Bravo. Your transparency inspires me to do the same.

    Cheers,
    Trent

  • http://townshiphub.co.za Bongani

    Thanks again for being an inspiration to all of us out here. With regards to the offer, would you then consider selling let’s say 25% ownership for $10K? That way you can re invest some of the money to improve the website.

  • http://www.servis-ac.hostei.com adang

    Wow…I will sell it if I were you because that is a lot of money

    • http://scorpiongodlair.blogspot.com ScorpionGod

      hello dude I’m not agreeing to this idea. because the site is growing and growing.. So If he sells this site now for that amount. he will get only that amount. But how much will he earn if he keeps this site? SO this idea is quiet bad.

      Follow me on twitter

  • http://www.ingresosalcuadrado.com Franck

    Great news Pat, Congrats!
    Plus it must be highly motivating…to make it even better

  • http://www.sukcesman.pl Biznes Internetowy

    It’s great news. The offer would be higher or not in future. At this moment site is profitable but it could be more profitable if you make multimedia materials to sell – it’s safety way to earning. Google #1 position it’s your primary way of income but it’s unsafe.

  • Neil

    I’m delighted you didn’t sell Pat! Way under priced at that level. On decision making, my personal philosophy is that I don’t think anyone should beat themselves up about decisions they make because all anyone can ever do is make the best decision they can with the information that is to hand.

    To answer the question on how much I’d sell the site for, I’d ask a question in return…how much is it going to cost to educate your son? Take that number and multiply it by the # of years and an approx rate of inflation. The number that comes out would be my answer.

    Until someone was prepared to pay me that much I would just keep working the site and testing new layouts, positioning of ads and especially different monetization strategies.

    Really with everything I think goals are crucial…

    Thanks for another really engaging post

  • Mike

    Congratulations Pat!

    I’ve been following the niche site challenge series with keen interest, and it has been very informative and educational – I’ve learned a lot. It’s great to see that not only is there a light at the end of the tunnel, so to speak, but the light keeps getting brighter.

    I think you were very smart to decline this initial offer. Your assessment of the site’s true worth, based on current age and income, is much closer to it’s actual value than what you were offered. Plus, “knowing” you as I do from reading your blog, it’s going to keep going up in both income and value.

    Again, congratulations – it’s nice to see that nice guys don’t always finish last!

  • http://www.mindofallan.com Allan

    Wow that’s amazing Pat!

    I just recently started following your blog and went through the whole “Start here” page. Went through it all and learned a ton!

    Just wanted to say thanks for all that free value packed info you’re putting out here.

    As to your decision of declining the offer.
    I believe that was the right choice! ;-) There’s still loads of potential in it and I wouldn’t know what I’ll do “if someone made me an offer I couldn’t refuse”.
    I guess the price-point would at least be the potential earning of the site for the next 5-8 years.

  • http://www.helpful-baseball-drills.com Bovic

    Pat, I love receiving emails from you with this kind of information. Congrats.

    Info like this and your earnings reports keeps me fired up and charging on.

    Don’t let up, keep them coming!

    Bovic

  • http://www.spunkyjones.com/ Spunky Jones SEO

    It is always nice to get those types of offers. It’s kinda like getting a prize for your efforts. Congrats…..

  • Amy Young

    Hey Pat, just read your post. Good for you, but I don’t think it’s a bad offer. If you actually look at Flippa most sites go for around 10 months income or they don’t get sold.

    That being said-it doesn’t take any time to maintain it so I would’ve held on to it too. I think it’s unlikely that you will get a 20k offer though. If you spend some time on Flippa and take a look at what sites produce income wise versus what people will actually pay-it’s not 3 years of income. I would hold on to it forever unless it gets burdensome or your want the capital for something else.

  • http://www.privatevictory.com David Hooper

    Why I’d Sell:

    1. Niche sites can be finicky, especially if you’re relying on Google for traffic… You can be #1 one day and not listed the next.

    2. Everybody knows your niche and your competition is likely to increase because of that.

    3. The money right now is guaranteed, the future health and income of the site is not.

    4. You’ll have more time for other, more enjoyable, pursuits.

    5. You can leverage the sale/experience to create something bigger and even more profitable, like a “How to Sell Your Niche Site for $10,000″ class.

    Why I’d Keep It:

    1. Because this is a real site (as opposed to some type of “auto-blog” or scraped site), you’re probably ok with Google.

    2. If it continues to work at this level, you’ll make more money in the long run.

    3. Everything is outsourced (I think), so it’s not that much of a time commitment. Plus, you’re providing a job for somebody.

    4. Diversity in your “income portfolio” will give you peace of mind.

    • http://coveringtherent.com Ryan@coveringtherent

      David thats some fantastic advice.

      I am with you on the leverage through sales experience. It would make a fantastic workshop ‘How to sell your niche site for xxxx’ and i think Pat would benefit from that. Furthermore he would have money now to save. Saying that 10k is not enough and he can pretty much earn that in 18 months of work so I wouldn’t sell it for that amount.

      You have however summed up every single option great.

    • Jeremy

      Nice breakdown, David.

      Another reason to keep the site is that the heavy lifting has been done already. Building a site from scratch is like pushing a car out of a ditch…getting it moving is the hardest part and keeping it moving is much easier.

      Going from $0/mth to $500/mth is a lot of pushing. Doubling it to $1,000/mth is much easier. So is doubling it again.

      I would build it until you hit a real plateau and then sell. Reinvest the money in another (QUALITY–not cheap non-english speaking writers) outsourced site and rinse and repeat.

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  • http://www.superblogga.com Missy (The Super Blogga)

    Web properties are no joke, they’re an asset like any offline asset worth money. I made a crucial mistake last year selling a series of sites for what I thought was decent money, and regret it tooth and nail.

    Not a day goes by, I don’t regret my decision. Because what I sold was…time. My sites were established and high ranking sites which we all know take time to develop. The new owners bought time and lots of it.

    I sold one property way too early and lost out big time. I sold it at Christmas time 2009 for a paltry $2,000 and the new owner turned around and flipped it for $16,000 in April 2010. Obviously I made a BIG MISTAKE. It’s a long story, if you want to read about it more, here’s a link to the whole ordeal.

    http://www.flipwebsites.com/selling-websites/the-16000-mistake-lessons-learned-from-a-successful-website-flipper

    Needless to say I don’t plan on selling any more of my sites anytime soon, and surely not for too low a sum.

    You did right in (((not selling))) and you pretty much mentioned the reasons why in your article. I agree 1000%.

  • http://www.experience-canada-after-immigration.com hazy

    Hi Pat,
    I think with the site, the juice was in creating it from scratch and watch it grow. That site was in some manner a growth of you as well. The person who made the offer didn’t understand that or your passion, or as someone said earlier, the buyer could have been just testing you. All things said and done, its nice to know that you have built an asset that marketable.

    Again, sites are like babies. When you have completed your input on them…. you will be willing to let them go. Till then plod on with your creations :-)

    On a separate note, your communication style is fantastic. Its frank and upfront!!! Its is a skill you can teach(and I`m sure many would be lining up to learn) as well. Keep it up!!

    Will be following your progress. All the best

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  • edna

    Pat, you made the right decision, the site is worth a least 4 to 5 times more than that. But that’s what investors do, they try to find cheap assets. You have the natural gift of SEO, not many people have it, but some do and you are one of them. keep the donations going because that’s a big part of success.

  • Alison

    I totally agree with your choice. The amount of time you put into the website so far is probably worth more than $10K. Plus, you probably generate a lot of traffic from people that are watching that website grow. Not only could you make that money in a year, the intangible amount far surpasses $10K.

  • http://www.epcinvest.be EPCinvest

    Congrats on the offer!

    It’s hard to estimate the value of a site. Especially if you are writing for a non-USA market things get more complicated. With my flemish site, I have a ‘market’ of 6 million people of which +- 20.000 / month are searching for the information I write.

    I think if my site would get 20.000 visitors / month, I would have an earning potential of 300 euro / month, but I think my site would be worth more than (300x12x3) 10.800 euros since the market is VERY competitive for my main keyword ‘EPC’. In this small market there are about 3000 sites competing for the same keyword :)

  • http://www.takingoffthesuit.com exsuit

    Where did you get 3 years income from? I thought that typical selling price was 10x monthly revenue.

    As for the money, $10K doesn’t seem like a lot for a guy at your level. DO you have other projects you could invest it into that would start generating even greater monthly income in the next 12 month? Putting that $10K into a vacation or house won’t earn you as much as it is in its current form (the security guard site) so I wouldnt sell based on that reason alone. If you have another project/site that you needed $10K to get started, with greater returns then your security guard site, I would sell and use the funds to jump to the next level.

    • http://teatreeinternetmarketing.wordpress.com/ teatree

      Agree. There’s another aspect to think about too – lots of people have refused to sell sites, and then found that their site got tanked by one of G’s algo updates. Far from having three years income in the bag, they had maybe three months and would have been better off cashing in and selling the site, and passing the G algo risk to the buyer.

  • Tom

    Pat, thank you for this post. It inspired to take action on setting up my own niche site. Specifically, I have done the following
    - applied for a Google AdSense account (wonder how long this will take)
    - registered the domain for my niche site
    - ordered 25 articles for the niche site (5 articles for the site itself and 20 articles for backlinking).

    Thanks for continuing to share your journey with us all and walking us through your thoughts and decisions.

  • http://www.edgeofdavid.com David

    DECLINE.

    That site is very valuable because the income it generates requires no additional work AND it could be improved upon to an even greater extent. You built a site that is exactly what an investor is looking for.

    I would seriously consider an offer of $35,000 in it’s current state given that it generates a healthy income with zero work and it can be vastly expanded upon.

  • http://www.internetincomecode.com George Tee

    Hi pat. I definitely agree that you declined the offer. Since the site are getting $700 – $800 per month, this can get more than that with your existing efforts. Let’s say you accept the offer, the $10,000 offer now is high but its soon be gone. If you decided to sell your site in the future, I am sure you can get much more than $10,000.

  • http://sami.laakkonen.ws Sami

    I would sell the site for 30k and start a new niche site with the money from selling :)

    Now that you know it is a profitable niche and know how much you need to do work to achieve first page results it’s easy to calculate ROI if you outsource the new site building.

  • Nathan Gardner

    $10,000 is really low – I’d happily give you $20,000.

  • http://www.webuildyourblog.com Andrew @ Blogging Guide

    Great decision unless they increase their buying price. Thanks anyway for sharing. You just motivate a lot of people to attempt because there is always a future with hard work.

  • http://make-website.com Anni

    I get offers for my website quite often – at least 4 times a year. But no one has ever said how much they’d buy it for lol.
    (I wouldn’t sell anyway – I think it’s nuts to sell something that’s doing well, unless you need the money to do something else.)

  • Tipjar

    Hey Pat,

    Just a quick question here. When I do a search for your keyword (Security Guard Training), I notice that Google includes “site links” in the search…is there any tips for getting site links included in the SERPs?

    • http://www.barchannels.com Tomalley

      Hey Tipjar, I get this question a lot as well. Site Links are manually determined by humans at Google. Your best chances to make your site appealing to Google editors is to pay close attention to structure. For instance, your about page URL should be /about instead of about.php

      Once they do throw you Site Links, you can edit how they appear via your Google Webmaster panel.

  • http://dreamhousewebsolutions.net Louie Sison

    HI Pat,

    Is it possible to know all the sites you currently update? Just hoping :)

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  • Kim

    Hey, You said that all sites got #1 in main keyword. How are you getting backlinks? Are you using any tool or oursourcing ?

    Best Regards & Congrats your success,

  • http://www.thrumylens.org John Holbrook

    Pat – definitely a good call on your part. I recently turned down 200k for one of my website properties – an offer which was more than the typical 3x annual revenue guideline you often read about. I turned it down for much the same reasons for you, but also for a less tangible one – I enjoy having ownership of the website. I enjoy producing content for it, and I enjoy developing it. Some day I’ll sell. But not today. :)

  • http://bashirhasan007.blogspot.com bashir

    well frind,if you don’t mind,i am using ,wanna to know that.can you please tell the way how to inprove my traffic on my blog although i am currently pursuing my mba,but very keen to continue my blogging inspite of lack of time,bt ver much interested to learn morefrom your bro,please help me to explane each & everything related with blogging,how to generate my income,everything related with business promotion ,can you help me out..
    waiting fr you reply
    bye & t.c

  • http://bashirhasan007.blogspot.com bashir

    well frind,if you don’t mind,i am using ,wanna to know that.can you please tell the way how to inprove my traffic on my blog although i am currently pursuing my mba,but very keen to continue my blogging inspite of lack of time,bt ver much interested to learn morefrom your bro,please help me to explane each & everything related with blogging,how to generate my income,everything related with business promotion ,can you help me out..
    waiting fr you reply
    bye & t.c

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  • http://victoryunlimitedshow.com/ Victory Unlimited Show

    Wow…I wonder how many people actually are making a pretty good living “flipping websites” the same way that people used to “flip” houses before the market fell back in 2008? That might be a good topic for someone in the make-money-online niche to cover.

  • http://goodfinance-blog.com EvangelineMarquez32

    Do not money to buy a building? Worry not, just because that is real to get the loan to resolve all the problems. Hence get a term loan to buy everything you want.

  • http://www.netjiyo.in pradeep parashar

    if was offered something like this,i will not accept at all.

  • http://CashFlowsToYou.com Monty

    This truly is a blessing to read. I envision the opportunity to be in a niche based upon the inspiration from your work and your words. I’m thankful for every blog post you create an look forward to each new post, podcast and site revenue update.

    I wish you continued success and I look forward to inspiring others one day too as you have done me.

    God Bless!

  • http://www.yourlife-yourchoices.com Lenia

    I like your way of thinking Pat and I like reading your thoughts.
    I probably had taken the same decision as you. If i manage to achieve a result than the one you achieved through this site that means that I deal very well with the internet marketing and smart passive income approach so why not continuing working on what I built instead of selling it.
    Thank you for sharing

  • http://www.trendsandgadgets.net/ trendsgadgets

    Home & Lawn or Way of life. But views, problems and actions (reviews) from guests are key. In brief, Designs & Devices is a lot of information available for anyone and everyone!

  • http://mikeazer.wordpress.com Michael

    I know this is too late to ask the question, but in your post you said “99% of the income currently generated is from Adsense”. Where is the remaining 1% coming from? Is it the job listing commission?

  • http://www.jasonloveslife.com Jason Love

    To have an offer for $10,000 for 10 months of work with only 5 – 7 hours a week (I think that is what you quoted) makes it 240 hours. It turn you made $41.67 which is way more than I make an hour, but not great for something that can continue to make money for years to come.

    Still 10 grand is hard to pass up.
    -Jason Love
    http://www.jasonloveslife.com

  • http://Www.laptopmiljonair.nl Maurice

    Allthough I come into this discussion very late, I want to let you know that all your articles and info rock. I’ve seen a lot of sites like yours and sofar yours is one of the best. What I am missing are your share buttons. Especially with all the new Google changes that would be helpfull isn’t it?

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  • juel rahman

    Must will be following your progress. All the best.

    http://www.update29.com/

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