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Flippa Newsletter: 1-year-old WordPress Site Listed At $125K (22x)

Discussion in 'Site Flipping' started by HiPurple, Oct 27, 2019.

  1. HiPurple

    HiPurple Regular Member

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    Flippa's daily newsletter has a WP site that is only 1 year old listed for sale at $125K, earning $5807/month, which is a multiple of just over 22x.

    I wonder how close the sales price will be. I can't see the URL because the seller requires a NDA, but I thought that it was interesting and relevant to the WP developers here.... perhaps a nice goal to have.
     
  2. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    What are they saying are traffic sources and revenue sources?
     
  3. LeapOfFaith

    LeapOfFaith Junior Member

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    Valuation of $125k in one year..wow. I'm curious about their traffic and monetization too.
     
  4. HiPurple

    HiPurple Regular Member

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    01.png 02.png 03.png
     
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  5. bossofthebosses

    bossofthebosses Jr. VIP Jr. VIP

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    [QUOTE="HiPurple, post: 12561471, member: View attachment 122712 [/QUOTE]
    It says in 1.5 years they made 67k revenue
     
  6. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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  7. HiPurple

    HiPurple Regular Member

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  8. HiPurple

    HiPurple Regular Member

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  9. bossofthebosses

    bossofthebosses Jr. VIP Jr. VIP

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    After looking at the metrics, I am thinking - is it possible that it is fake? o_O:suspicious::smirk:
     
  10. HiPurple

    HiPurple Regular Member

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    BTB will let us know after he signs the NDA. ;)
     
  11. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    Just waiting on the owner to approve my request.

    If it is legit and something I am comfortable with we may buy it as it is priced reasonably and pricing is always negotiable when buying a property.
     
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  12. HiPurple

    HiPurple Regular Member

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    Agreed, I'd be in there with you but my $ is tied up in other projects atm. It feels legit to me, and the owner seems sincere with what we can see pre-NDA.

    Please let us know what you find out.
     
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  13. kindablack

    kindablack Jr. VIP Jr. VIP

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    It’s a WP Management business.

    It has good metrics, but the business revenue highly depended on the “technical service”. marketing/sales are really hard in the b2b recurring services. The website has a very small effect on the sales. So, it’s important to review whole business processes.

    1. How do they generate sales?
    2. How does they generate leads?
    3. Do leads that come from paid marketing really convert well? (Generating $67k with $1.2k is a very bad signal)
    4. How do they convert leads to sales?
    5. Is it depending on spesific people?
    6. Who do the service technically?
    7. Will staff continue working with you?

    These are important questions. We are trying to build a WP management business, and it’s really hard. Paid ads —> leads —> sales is not working in simple approach. Advanced marketing, sales and management skills are needed.

    btw, I will also check the business on Filippa
     
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  14. HiPurple

    HiPurple Regular Member

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    Good insight. Please let us know what you discover.
     
  15. kindablack

    kindablack Jr. VIP Jr. VIP

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    Got approval and asked a few questions to the broker company.

    They've sent me the breakdown of the revenue and answers to my questions about the sale source.

    I won't keep this long with the math and my analysis:
    1. Only 10% of revenue is recurring (from subscribers)
    2. Recurring revenue is around $700 - $800 which mean they only have 10-11 recurring service subscribers
    3. The other revenue (90%) comes from high ticket one-off services. Mostly "website development" + "Hourly WP dev rent"
    4. This business needs a high level of technical knowledge
    5. As you already now selling high ticket "website development" requires lots of physical activity (which I think they only do)
    6. None of the sales come from the website, and they even don't track web leads/forms
    7. Every month, a few $X.XXX orders + $700 from recurring subs. That's all. It's very risky
    8. They haven't spent any money on Google Ads or Facebook Ads
    9. They don't have any social media presence or email list
    10. They use the payment processor with their main umbrella company (means the revenue might not only be paid for WP tasks)
    11. They have an umbrella company which I think bring them all sales
    My conclusion:
    All business is based on the clients of other creative local agency that they own. All sales come from offline sources. The website is valueless. Nothing with the website, nothing with online marketing, nothing with content marketing, nothing with email lists... A blank box with good branding is what they are trying to sell.

    @BassTrackerBoats @HiPurple @bossofthebosses
     
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  16. MarketingPearl

    MarketingPearl Junior Member

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    Ah....125k for a that website??
     
  17. HiPurple

    HiPurple Regular Member

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    Thanks for the feedback on that one, @kindablack . Good to know the whole story behind the listing. Think I'll take a pass.
     
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