Buying a 2 million dollar website

FormerBoxer

FormerBoxer

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Empire flippers is selling a 2 million dollar website! Who buys those websites? People just have 2 million hanging around lol. I probably wouldn't sell a website making me 60K net a month. I notice all these websites that sell for a lot they put in over 100K a month in expenses! I always wonder why these websites can't get their expenses down.
 
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New York Times purchased The Wirecutter and The Sweethome for $30 million lol
 
You need to constantly be pumping out content and link building. Which is expensive .good writers costs a lot of money when you mutiply it buly lots of articles a day. People sell for all sorts of reasons .perhaps they want to start a new venture so they want to cash in.
 
FormerBoxer said:
Who buys those websites?
Click to expand...

People with cash.

I was looking at some FBA businesses for sale and there are a lot of them going for six or seven figures. The problem for me is the margins are so low in a lot of cases, you can get better ROI by investing in other long term projects.
 
Interesting stuff.

To hazard a bet I'd say they're operating a high volume low margins business model.

Those figures in the screenshots don't include their cost of stock which could be high.

Furthermore it doesn't include the cost of hiring out an industrial unit, wages or tax.

It might be a too time consuming business for very little return. It'd be a great addition to an existing eCommerce setup, but on it's own might not be what the owner wants to do for the forseeable, especially if his/her money is tied up in it.
 
FormerBoxer said:
Empire flippers is selling a 2 million dollar website! Who buys those websites? People just have 2 million hanging around lol. I probably wouldn't sell a website making me 60K net a month. I notice all these websites that sell for a lot they put in over 100K a month in expenses! I always wonder why these websites can't get their expenses down.
Click to expand...

What is the website name?
 
Sephrata said:
People with cash.

I was looking at some FBA businesses for sale and there are a lot of them going for six or seven figures. The problem for me is the margins are so low in a lot of cases, you can get better ROI by investing in other long term projects.
Click to expand...

Yep I agree. Which is why in the long run I'm looking at getting newer websites that are bringing in revenue but only selling for 10-25 X earnings rather than the 30 X you'd pay for on empire flippers for established sites.
 
Income isn't only from ads. I would pay 2mln$ for website with loyal userbase with email, contact data, etc.
Even small SaaS systems with proper targeting can make such money.
Everything is about loyalty.
 
So if you get one of the established websites and automate all content creation and seo, you could flip the website in a year or two for a much higher profit?
 
ExperimentalSEO said:
So if you get one of the established websites and automate all content creation and seo, you could flip the website in a year or two for a much higher profit?
Click to expand...
SEO is not everything ;)
what matters is your customer base, relations, average customer profile, etc.
You can have website with millions of not paying kids or website with 50 paying company owners ;)
 
If the website is making 60K net a month, that is 720K annual profit.

Average rate of return in normal investments is 7% yearly.

The return here is 36% annually and you can actually control the return unlike the stocks or crypto where you literally have no control on the market. It requires effort but it is less risky (if everything's verified) and better investment.
 
vinku said:
SEO is not everything ;)
what matters is your customer base, relations, average customer profile, etc.
You can have website with millions of not paying kids or website with 50 paying company owners ;)
Click to expand...

Cutting down the operating cost of articles and seo to just electricity and their share of internet costs should be able to boost the profit margins of many types of websites.
 
Gotta pay to play. For the right person this is an ideal plug and play business that could make big capital.
 
BassTrackerBoats said:
Latona's has 2 Amazon stores listed for about 4MM each.

One is an FBA and the other appears to be just a store with some other assets included.
Click to expand...
Wow! I just saw that. Wonder how much they pay themselves.
 
Isn't @meathead1234 Thomas from FE International? He specializes in brokering buying and selling sites. He goes in depth on what builds value in companies on his videos. Look up FE International on youtube. Very interesting, and something you should set your sites on, so you can make the big bucks on the way to your next venture... :)
 
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