From what I understand, the value would be based on a multiple of each traffic source and the likelihood of it standing the test of time...
SEO traffic can expect to trade at 1.5x-2x
Paid search traffic at a 6 month multiple
direct navigation traffic at a 3x-4x multiple
Also, It would be based on the previous 6 months average... Not the current year sales...
Personally, I am way to skeptical of this guy finding a buyer, and than scamming him by buying up inventory through friends and entities he creates, knowing he will get 2.5x+ on each product he buys.
Unfortunately, the trailing six months isn't a meaningful figure given the annual seasonality of the niche. Value would be over stated in the spring (when profits are high) and under stated in the fall (when profits are low).
And while, theoretically, it could be possible to create a ton of fake transactions to boost the sale price, it'd sure be a heck of a lot of work for little payoff. You'd need legitimate transactions, otherwise you'd simply be returning the motors and reducing revenue.
I suppose I could start a trolling motor MLM and ruin all my personal relationships to boost my chances at a slightly higher sale price...
> And while, theoretically, it could be possible to create a ton of fake transactions to boost the sale price, it'd sure be a heck of a lot of work for little payoff. You'd need legitimate transactions, otherwise you'd simply be returning the motors and reducing revenue.
Also, It would be based on the previous 6 months average... Not the current year sales...
Personally, I am way to skeptical of this guy finding a buyer, and than scamming him by buying up inventory through friends and entities he creates, knowing he will get 2.5x+ on each product he buys.