Every good entrepreneur has an exit plan. If you want to sell your business and retire in 5 years you will run it differently than if you plan to retire 30 years from now.
I’ve never asked any fellow web publishers what their exit plan is. Judging from their attitudes I think I think its fair to say that most would like to see their current revenue grow and continue on until they die.
For me, I have seen my revenue grow anywhere from 25% to 30% a month this year. At that growth rate it won’t take me long to reach every single one of my life financial goals.
I don’t think it is realistic for me to expect this kind of growth to continue indefinitely. In fact, it is already showing signs of slowing down. Unless I build some new sites that can really bring in killer traffic my income is going to plateau and maybe even drop.
Most independent web publishers rely almost entirely on free search engine traffic to make money. If the traffic dries up so does the money. For this very reason many web publishers keep their day jobs (along with the fear of being booted from Adsense.)
Due to this instability the re-sale market for content-based developed websites is weak. There are a few exceptions to this. First, premium domain-name sites such as men.com which last sold for over $1 million; second, just plain huge websites (such as IGN and Myspace which each sold for over $500 million this year.)
Personally, $500 million sounds like a great exit plan to me. I suspect most website publishers are too preoccupied with “the next Google check” to even consider making this a goal.
I believe that the domain-name investors are dead right when they talk about the concept of “virtual real estate.” Web sites have a real future value just like any building or plot of land. In the last decade the value has grown at near hyper-inflationary rates. Perhaps you could even compare the dot com bust to a mini-great depression.
Until now it has been the premium domain names and mega-sites that have shared the majority of internet real estate’s value.
I think that might be changing. Take a look at these tools at Jim Boykin’s SEO blog. Here is a tool which displays the top ten results on Google and include the website’s date. Its clear that age plays a big role in search engine ranking. If you want to be on the first page for “poker” on Google you might just be better off buying a site that has been around since the late 90s instead of starting fresh.
So, do you have an exit plan?