Looking to sell your escort business? We give you tips and advice on selling your escort agency or escort directory and help you work out its true value
These last couple of years have been difficult for most people and especially problematic for escort business owners. With limited access to Government emergency aid, most escort related businesses have had to endure this hardship and take it on the chin!
If you've been through the ups and downs, it might be that it's time to perform an evaluation of your company's situation. You may want to know how much your business is worth if you are looking to sell up or simply want to know where you stand if selling your online business is your ultimate exit strategy. It can be difficult to say what the value of your business is as you have undoubtedly invested a lot of work and money into getting it to where it is today. And ultimately, a business is only worth what a prospective buyer is willing to pay. However, with the tools below you can at least have a clearer idea of what your escort business may be worth.
Things To Consider
Factors that affect your business’s value include: how profitable your company is, how much a competitor or any other company is willing to pay for it, and the potential for future growth as well as the state of the market itself. In addition, the following factors also come into play:
The Age Of Your Website
The age of your business and more importantly your website are very important. Older and well-established companies tend to be more profitable and carry less risk, making them much more appealing to buyers. They also will have established better results on search engines and potentially carry more backlinks than newer sites.
Established Client Base
If you already have an established and loyal client base this can be reflected positively in your final selling price. A business that has a steady, monthly income from return customers as well as additional new customers is very attractive to buyers. It means there is already a solid foundation for them to build on. A bulging mailing list of clients is also invaluable here.
Every business is subject to changes in the market as we have well seen in the past two years. It’s inevitable that your escort business will have a higher value in times of high market demand and a lower value when the market has slumped. Therefore, you need to decide on the urgency of selling your business and if market conditions are not right you may want to hold off until things improve.
In the escort industry reputation is king. An established escort agency with a good reputation and a solid client base is a much more attractive proposition than a new agency with little or no clients and still in the phase of building up a reputation in the industry. So, even if your website is all-singing and all-dancing and looks better than all your competitors that may not necessarily translate into a higher selling price. The businesses’ reputation and standing in the industry can easily trump an impressive looking website.
Valuating Your Escort Business
Once you have a clearer idea of your business and its current position in terms of what was discussed above, it’s time to pull that data together and try to put a valuation on your business.
Valuing Your Assets
If you are looking to sell an escort agency or a directory website, your assets will be your website and your domain name. They are the only two real assets that will have some value and need to be considered when coming to a final valuation.
Your domain name value can vary greatly, as some domain names can be worth thousands or even hundreds of thousands whereas others have very little value beyond the initial purchase price. If you think you have a unique and valuable domain name you may consider getting it appraised. Escort domain name appraisal companies can give you a clearer idea of the true value of your domain name.
Your website will also hold some value, but again this can vary depending on a number of factors. The age of the site, it’s position on search engines and of course how well it’s built and how well it performs. A potential purchaser may look to completely redesign the site on purchase of your business but they may also be looking to simply take the reins over and run it as it is. For them to do that the site needs to be up to scratch and have no issues.
How Much Is My Escort Site Worth?
There are a number of methods for calculating the value of a business, though for us and in our industry we will be looking at the two most commonly used methods:
Entry-cost valuation is one way of working out the value of your escort business. Here, you are essentially calculating how much it would cost someone to launch a similar site and get it to the position your site is currently at.
This method may be more recommended for newer, less established sites as it’s harder to quantify for long established sites that have great search engine coverage and backlinks as well as mailing lists and return clients. If you have fairly recently built an escort website and have decided you want to sell up and move on, this method of calculating its value may be the right one for you.
The other method you may want to consider is the price-to-earnings ratio. If your business is profitable, it'll most likely be appraised by its price-to-earnings ratio, or multiples of profit.
Variables that drive the valuation of these ratios usually involve forecasts of your company's profit growth and its performance over the past 3 years. For example, if you have high forecasted profit growth or a good record of repeat earnings, it could lead to a higher ratio. As an example, if your escort business has £50,000 post tax profits and you apply a ratio of four to it it would mean a valuation of £200, 000. The ratio you apply is not standard and can vary. It will invariably depend on all the factors discussed above. If the market is strong and your earnings are on an upward trajectory you may consider a higher ratio whereas in a slump in business or in the industry as a whole the ratio can be dramatically reduced. We hope that this post has at least provided you with a little more insight and knowledge into selling your escort website, if that’s what you were considering.