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Many Internet experts determine a web site’s value using a straight revenue multiple formula. For growing web sites a typical revenue multiple is 2-5. For web sites with revenues of $100,000 and more a year the multiple can easily be 10 or more.
*Technically this amount is not a price but a court ordered restitution amount. The domain was originally registered by Gary Kremen in 1994. However, in 1995, Stephen Michael Cohen hacked the computer system for domain registrations, registered the domain to himself, and then proceeded to make millions each year through the site. In 2001 Kremen was finally able to get it awarded back to himself and the court ordered Cohen to pay $65 million to Kremen. Nothing has been paid yet. Cohen says he suffered from amnesia and can’t remember where he put the money he. Meanwhile, Kremen has sold up from Sex.com to recover his $65 million - but whether Cohen has memory enough left to remember to return to hand it over remains an unwritten chapter in a very remarkable story. |
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