I just want your opinions about base price of any youtube channel for general idea about price discussions with seller.
IMHO it’s 10x the last three months average earnings. What do you guys think?
Based on my experience, that sounds really high, unless you are dealing with a extremely established and upward trending channel… A channel with massive potential specifically in the niche that you are targetting and with the channel not having a personal brand attached to it as to not lose subscriber loyalty… Or a large YouTube channel that has gone inactive, but has a loyal subscriber base. Even then, I would never purchase a channel at that evaluation.
Evaluating a YouTube channel at 10x the last 3 months earnings means that the channel would have to perform equally for the next 3 years just to break-even. That is insane when taking into account the risks associated with a YouTube channel. YouTube has the ability to change their algorithm at the flip of a switch, and the algorithm has the tendency to be tweaked up to once a year. If their is any sort of copyright in any of your videos, you are risking waking up tomorrow to a terminated channel. In order to not have the channel die over time, the person buying it would be forced to stay active with uploads essentially working for free. as YouTube slowly stops recommending older videos over time on the home page, thus they slowly drop in views for the most part.
I’d say a more consistent evaluation would be closer to 10x monthly revenue, although again it really depends on a lot of factors, and the value of the channel to one buyer could be different to another buyer. Specifically if you are looking to make usage of the channel in that specific niche or audience.
2 Likes
12X the average monthly revenue + more $ based on the activity and the potentional to grow and get sponsor deals.
And I would never sell a Youtube channel, I don’t think it’s smart & you can get banned easily & you can make much more money by growing the channel organic and uploading vids.
I think you got it wrong. I said last three months average earning. And it roughly means 10x monthly revenue but average of last three months revenue would be considered.
If last three months earning is 100, 400, 100 then average would be 200 and the basis for the final price should be around 2000. What you guys think?
The whole point of this discussion is because I have come across many channels which are pricing their channel more than 20 to 30 times the last month’s revenue.
Because there is no basis price, we can’t negotiate. Can’t even ask the seller to reduce price more than 50%.
I believe @SWAPD along with his staff should reconsider this fact and start working on idea of how to restrain the price in certain ranges based on acc style/ popularity/ and other standards but again u just cant do such if the owner set his own price just to find out its out of price ranges available yet leading to either owner leave SWAPD for good or minimizing SWAPD chances of having more owner sellers willing to sell through SWAPD
Ohhh sorry my misunderstanding. I think that is an accurate assumption. 10x monthly earnings would be close to average. I think @RandyMarsh is right on the money with what he said.
Price is dictated by supply and demand, if a seller values his channel at a higher evaluation then you, there may be nothing you can do about it if your demand isn’t high enough. It’s unfortunate but as a buyer there is not much you can do. If the channel isn’t selling, the Seller will realize this and lower the price over time. I for one, for example, would never sell my YouTube channel just due to its sentimental value.
Totally agreed, same here.
Guys, I’ve seen an 1m+ IG account go for 300K USD. The seller wanted a million initially, but he dropped to 300K, even though 300K is ridiculously high. There are no set prices for these things, only approximations. However, there is always that chance that someone will pay through the roof, because of the the niche the property is in. Buyer demand is the ultimate factor, and we don’t like telling sellers what prices to set. We only chime in if we see someone is getting ripped off (like overpaying for a untruthful listing).
2 Likes
We agree. No one can force seller to sell at lower price and demand and supply should dictate the price. And also price depend on many many factors for such things. So there are no set prices.
But as a buyer I was looking for a general idea about what should be the initial offer to start the discussion about the price? How much should be safe and how much should be max in general considering other factors as normal!
Yeah we do our best at times to manage expectations, in fact swapd and I spent 3 days with a user a bit over a week ago doing exactly that, all the while they didn’t want to hear our reasoning before we found that their figures weren’t even what they were saying they were.
Often people who build accounts from scratch get attached to them and hold them in higher value than what they are worth. We can only do so much, and it’s always up to any seller what they are willing to sell an account for.
In regards to pricing them, I think any range from 9x-12x monthly average revenue is pretty spot on like you all have been talking.
We find that websites often run 20-24x monthly revenue which seems to be an industry standard, because naturally you have a lot more security and control long term over a website.
Unfortunately these things aren’t like real brick and mortar assets that you can talk loans and so fourth against, and they come with risks that don’t really see investors wanting to go more than a year or two max before they can see getting all their money back out of the purchase.
1 Like