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Can Someone Explain To Me Why Someone Paid 10.5K For This Site?

Discussion in 'Site Flipping' started by Taker101, Mar 20, 2014.

  1. Taker101

    Taker101 Newbie

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    I just started selling a few of my websites on Flippa, so I'm brand new to it. I've noticed already people will buy ANYTHING.

    Take for instance this site that just sold https://flippa.com/2954812-established-logo-design-business-9-5k-profit-past-8-months

    Why would someone pay so much for it? All of the attachments the owner submitted don't really tell me anything. I'm guessing it's not that hard to fake those PayPal payments. The traffic screenshot doesn't help at all and I don't even see the point of backend screenshot. Looks like he's just outsourcing the designs to Fiverr or something, so nothing here makes sense to me lol. Maybe I'm just missing something?
     
  2. gtothem

    gtothem Jr. VIP Jr. VIP Premium Member

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    "$19k in revenue and $9.5k in profit in the last 8 months"

    There is your answer.
     
  3. innosoft

    innosoft Jr. VIP Jr. VIP Premium Member

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    site really looks cheap.. is not worth the money. i am thinking y wud a person buy for 10k! if it gets sales that he claims, he shud have made site good enough.
     
  4. Apricot

    Apricot Administrator Staff Member Moderator

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    Gross Revenue (3 month avg) $2,770
    Net Profit (3 month avg) $1,411

    Site pays for itself over time.
     
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  5. Valkurm

    Valkurm Power Member

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    And it looks like the same method one guy shared here. Making 2 websites selling a service, and selling one of the website where buyer need to outsource to main website.

    Must say their website looks like shit and I can't believe someone paid 10k for this.
     
  6. TrevorB

    TrevorB Jr. VIP Jr. VIP Premium Member

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    The person that purchased it might already have a design business running. Adding another site that is already established is a no brainer to me.
     
  7. lietuvis002

    lietuvis002 BANNED BANNED

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    On his screens you can see FireBug, 100% edited stats. How dumb was the buyer who bought the site? I mean it's a high risk to getting scammed...
     
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    Last edited: Mar 20, 2014
  8. JordanT3Leads

    JordanT3Leads Junior Member

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    Everybody wants to "make it big" in the internet marketing world. Some people just have the money to purchase websites that are already generating money.
    Hopefully it works out for everybody
     
  9. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

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    That's one of the issues buying on Flippa. These sites might seem like a good deal, but in reality, someone has lost $10.5k there. Unfortunately, it's not an uncommon story, either.
     
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  10. Nut-Nights

    Nut-Nights Jr. VIP Jr. VIP

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    investing and spending money without proper research results in these kind of these deals.
     
  11. -Jericho-

    -Jericho- Jr. Executive VIP Jr. VIP Premium Member

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    Totally agree. There doesn't seem to be any quality control over at flippa. I even question some of their sales because the prices I have seen some sites go for just seems unreal. This one I can see someone getting scammed on though.

    When I first got into IM I bought a site there and got scammed for several thousand dollars. I did my due diligence at the time but I was a total newb to the online world and got screwed because of ignorance to how these scammers operate.

    I'd suggest never buying from there unless you know what you're doing or pay meathead to help you since he seems to know what he's doing.
     
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  12. Harry 2706

    Harry 2706 Regular Member

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    usually 6 times the monthly profit is the website price.
     
  13. Taker101

    Taker101 Newbie

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    So you basically read the sales pitch and believe what they say?

    How would you go about confirming the PayPal screenshots are even real?
     
  14. rodvan

    rodvan Jr. VIP Jr. VIP

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    Thanks for the heads-up.
    Never used Flippa before, but I can see that many people can get fooled there.
    I feel bad I had some great sites generating lots in Adsense before I got banned because the Shitty traffic from Innoshow and Ayuads. I could have sold them on Flippa just changing domains and IPs. It was generating $150 USD per day. It was the insurance business.
    I already did all scrape for insurance businesses all around the world. Guess I will look on backups for it and probably make someone in Flippa happy.
     
  15. drake_designer

    drake_designer Regular Member

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    [FACT]Flipping site, it's mostly about showing income the site is generating.
    Personally i would have never gone anywhere near that listing because the lister had no transactions + he was linked with couple other banned profiles, each with single transactions.
     
  16. Spock187

    Spock187 Newbie

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    Ok fine, i'll share a little secret of Flippa.

    Here goes: Flippa creates sites then buys the site from themselves for outrageous prices.

    But why would they do that you ask? Simple. So people come to BHW and ask how a site that is worth 15 pennies just got sold for over 10k.

    See how the sting works now? Everybody gets all excited thinking they can sell a trash site for mega bucks because they saw it happen countless times at flippa.

    Then, somebody posts a link here, everybody goes to check the listing, flippa gets easy, free traffic.

    But this is only where the fun just starts for good-ole-flippa. It gets even better for them.

    What happens next is people start to think 100% of the sales on flippa are real. (Admit it, you thought every sale on flippa ended in a financial transfer of money between a buyer and a seller.)

    Ah, nope, certainly not 100% of the sales that are on thier site.

    Ask yourself - how much would it cost you to buy a web site from yourself?

    Answer = Zero.

    Now keep in mind, manufacturing fake sales on their own site, creates nothing but more profits for the owners of flippa.

    Am I saying this is what happened with the site Taker101 presented us? I have no idea. It would take me at least 3 minutes to study the site to get a clear picture of what really went on.

    But know this, the above strategy is going on all the time at flippa. I can't say how often it happens, but it happens a lot. I guarantee it.

    I should also say this: Yes, there are also always going to be tons of people that grossly overpay for sites on flippa as well. And in these cases, money really is moving from a buyer to a seller.
     
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  17. WPcrew

    WPcrew Junior Member

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    What Spock187 said really sounds logical. Similar transactions are not rare occurrence with sites that are providing services. It's probably the easiest type of site to fake earnings to justify unreal price on Flippa.
     
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  18. WildLyfe

    WildLyfe Newbie

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    Seems like it was a good buy.
     
  19. Birdz

    Birdz Regular Member

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    Because of the profit, the website will pay for itself over time
     
  20. goosefrabah

    goosefrabah Jr. VIP Jr. VIP Premium Member

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    This is just based off of profit. The site looked horrible, but that is an easy fix if the stated revenue is correct. I would need a lot of proof to plunk down that much on a site, but if the stats are correct, the buyer will make their money back.