I think the language you use is very interesting. "A website that I own" makes it seem like it's a commodity and not necessarily a product which you've put lots of blood, sweat and tears into building. From your description, it sounds like that's the case. So really its just a domain sale. Not sure what the domain is, so I can't be certain how much value that has in and of itself.
That said, the advertising profits alone do give the site value. I'd counter the offer at $600 and point out that, if current trends continue, the site will pay for itself in the next year. But there's definitely a lot of risk involved, so it's worth selling and taking the money now. I would at least.
Unless you want the domain for something, sell it. It's hard to rely on ad revenue. Being able to pocket a few hundred dollars right now is probably a good option.
Technically the site has already paid for itself this year and the next 20 or so... (technically because I already had hosting so I'm just assuming the cost of yearly domain renewal).
I agree with the risk part though. Might be better to sell it now instead of rolling the dice with the trademark and ad revenue.
That said, the advertising profits alone do give the site value. I'd counter the offer at $600 and point out that, if current trends continue, the site will pay for itself in the next year. But there's definitely a lot of risk involved, so it's worth selling and taking the money now. I would at least.
Unless you want the domain for something, sell it. It's hard to rely on ad revenue. Being able to pocket a few hundred dollars right now is probably a good option.