What would you do?

[MrMedia]

I have stumbled upon a website that I think is a good prospect to buy. I believe it is seriously under monetized and with some TLC I believe I can increase revenue x6 times at least within two months of purchase.

I have done some initial research and things look good (to my eyes).

The owner is waiting on me making an offer which I am reluctant to do.. never shoot first etc.

So here are the stats –

Monthly Uniques: 300k

Monthly Page Impressions: 500 – 600k

Rev: $800-$1000

Costs: $26 p/month

DA: 28

No content has been added in 1 year and it is declining in traffic.

What else should I be considering in my valuation for the initial offer? Should I just low ball it at x12 rev and see what they say?

I think I could get a real bargain here and flip for a major profit if I play this correctly.

 

[Sin]

lowball it, from your description the website is abandoned and the guy is probably just happy to get rid of it. Worst case he say no and you ask him to say his offer.

 

[Calamari]

I wouldn't low ball if you can increase earnings by 600%.

You're buying a business and making profit so why risk the deal by insulting him with a low ball offer when you think you can profit so largely.

Just judging by the number of uniques and page views there's a good chance you're right about it being under monetied.

If you have the money and the skills make a fair offer and go for it, then pour youself and into freshening the site up.

Don't blow the chance to make 6k a month to save 10k up front.