Hello,

I am looking at site that has a pr6 and sells some products. The current owner says last years sales were 20k usd from this site.

The current owner thinks the proper asking price should be 20k.
So that means a one year return on investment. Is that the industry standard? Or what would be a reasonable offer and why?

The asking price of a BUSINESS (note: not just a website) ranges from 6 - 9 months of SALES to as high as 24 months or even longer. It really depends on the industry AND A LOT of other factors.

I sold a PR7 business here at WHT for a couple thousand dollars. It was not a big money maker though, and that price was equivalent to approx 1 years profit. I also sold another (significantly more successful) business for 5 figures and that was equivalent to only about 6-8 months of profit. I could have held out for more, but I needed to clear out some time and resources for other things. Plus, I'm a pretty soft seller and often willing to accept less money in exchange for spending less of my valuable time attempting to close a deal.

So, as Nameslave said, there are lots of different variables involved, with both the buyer and seller.

I would say that if he can prove the income, paying a years profit is a fair deal, and perhaps even a good one if you think the income will remain consistent, and feel the future of the site/business is solid.

Good luck Sonic. Let us know how things turn out. :)