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I Was Just Offered Five Figures for My Niche Site!

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I Was Just Offered Five Figures for My Niche Site!

By Pat Flynn on  | 

5 Figure Offer

Many 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

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