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Thread: Seconds and Inches

  1. #1
    Administrator Jonesie's Avatar
    Join Date
    Aug 2012

    Seconds and Inches


    Ticaland's inception was far from certain in the summer of 2012. There were a group of guys who wanted to buy an existing site and have me manage it instead. It was a hair split from all going in a different direction.

    Here is a valuation of a primary competitor for a group who asked me to vet it and provide a dollar value to the site for purchase.


    **************.com Valuation as of June 22, 2012


    **************.com is a forum based website that supplies information from member to member for the purpose of enhancing a Costa Rican vacation. It has been in operation for slightly over 9 years, and has a current paid membership of just under 1,600.


    CRT has a loyal membership community that contributes to content regularly. Members enjoy discounts at local businesses and coordinate trips with each other through the forumís calendar feature. CRT is generally viewed favorably by local male travelers. It has mixed reviews among local businesses, Leaning towards favorable.

    It is, for the most part, a cohesive tool for the male Costa Rica traveler community.


    CRT is showing a steady revenue decline over the last 4 years reflecting an average loss of over 5% per year.

    Currently, it is projected to take in just under $59,000 in total revenue for the year 2012. With an estimated 2013 revenue of $54,000.
    The primary sources of revenue are paid membership, and paid advertising. The primary expenses are site-hosting, admin and moderation, and credit card processing.


    I would estimate the primary expenses as follows:
    Site Hosting: (12 x $199) $2,388
    Processing fees: ($58,000 x 2.5%) $1,450
    Conservative estimate for labor (admin/moderation) $18,000

    Net Income/Profit:

    Based on the current yearís revenue of $58,000, and the estimated expenses of $21,838 (assuming owner/operator only pays himself $18,000), I would estimate CRTís NET annual revenue at $35,662, or $36,000, to round up.


    Generally, when purchasing a for-profit internet company, the company is purchased for 2-3 years of itís net revenue. With the seller preferring 3 years, and the buyer preferring 2 years.

    My opinion, taking into account CRTís growth potential, while at the same time acknowledging the facts of itís current decline, is the market price of CRT would be between $100,000 and $130,000.

    Other things considered:

    This site will need a labor intensive software upgrade in the near future to remain competitive.

    This site depends on the Costa Rican tourism sector, which is in considerable decline, and shows little signs of improving over the next couple of years.

    Devilís Advocate:

    An alternative to this plan would be to initiate a new site to serve the Costa Rican community. Boutique forum software exists that are far more robust and user friendly than phpbbís modified free software currently being used by CRT. With the resources currently available, strategic partnerships, and a persistent marketing/advertising campaign, the same results could be duplicated within 18 months at a cost of under $30,000. Should we go the start up route, we would have an overwhelming content advantage, but our focus would have to remain strictly on single male tourism.

    This is not a liquid asset. There is a very finite number of potential buyers, should we wish to step away after purchase.

  2. #2
    Administrator Jonesie's Avatar
    Join Date
    Aug 2012
    This was the VERBATIM information provided by Tommy B. when a group asked me to vet CRT for purchase. I made my valuation based on this information. It was attached to a confidentiality agreement that is now expired (and that Tommy never signed and returned).


    CRT by the numbers


    1st off all all Transactions are verified since 98% of all revenue is Credit Card Generated.

    Site generates Gross Income of somewhere between 65K to 80K Annually in Membership, Logo Shop Sales, Paid Advertising etc.

    Current VIP's 2992

    Current Lifetime VIP's of above 1394


    24500 Email accounts in our Registered (expired) database

    Other Domains Owned

    Fully Built Logo Shop:

    VISITS Average 30K Plus per month
    Page Views per month Over 500000 per month Average

    95% of all signups are done online so everything is documented EVERY PENNY from Visa / MC / Discover / Amex / Pay Pal:

    US Corporation with US Taxes filed of course my deductions are what they are there is VERY LITTLE cost to running the site Only server costs, web maintenance less than 3K a year.

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