How the hell did this site sell for 36K?
- Thread starter Georges
- Start date
audioguy
Power Member
- Jun 12, 2010
- 608
- 224
Site value is not always x12. It's just a guideline. As with any auction, the market drives the value. If they want it badly, then they are willing to pay more. A lot of clueless people out there, but I hope they know how to grow and get their money back from that investment or wait 30 months and hope the income stays what it is.
Moreover, the income is from advertising sales, people tend to believe it as passive income. (half true)
Moreover, the income is from advertising sales, people tend to believe it as passive income. (half true)
brainstorm1
Senior Member
- Jan 13, 2012
- 889
- 330
Are people forced to pay on Flippa? Might not be legit.
Bidding wars can lead to egotistical prices too..
Bidding wars can lead to egotistical prices too..
pyronaut
Senior Member
- Dec 9, 2008
- 1,189
- 1,440
It's not just based on the current revenue, it's the direction it's heading. Which could easily become absolutely massive given that they have a natural social following, and in the description he talks about raising his rates for BuySellAds a couple of times and still garnering interest.
Never understood that "potential" buying. I would understand this deal if it goes with client base, and a stable working service. Content + promotion would cost a maximum of 3k. Why buy for 32?
Potentially Google will roll out new penguins or lions next month and the site is gone.
Potentially Google will roll out new penguins or lions next month and the site is gone.
Buyer probably has a wrinkle that ups its valuation to greater than what he bought it for. Similar to how during a leveraged buy-out the company being bought shares are bought at a premium- yet both parties think is still is a good idea. I'm guessing someone is going to monetize this unique traffic or optimize the ad slots - sell through a chain of ad networks and set price floors instead of just going through googl. I've found it's best to have google at the bottom of my chain; might as well go through OpenX/RTB first, they pay better 
contentcouch
Power Member
- Oct 24, 2011
- 689
- 128
Yes, I agree with this point.
I myself have bought site for nearly 5 years earning, cos it all depends upon the niche and further monetization, which I have done and have made an ROI within 2 years.
I myself have bought site for nearly 5 years earning, cos it all depends upon the niche and further monetization, which I have done and have made an ROI within 2 years.
I've sold sites for more than 36x months of profit.
It all depends on the traffic model. IF it has 90% google SEO traffic, then I wouldn't put even 10x months of profit.
If on the other hand traffic model is diverse and much less risky...e.g. 50% affiliate/referrer traffic, 30% direct traffic and 20% Google...then 36x months is a good multiple.
It all depends on the traffic model. IF it has 90% google SEO traffic, then I wouldn't put even 10x months of profit.
If on the other hand traffic model is diverse and much less risky...e.g. 50% affiliate/referrer traffic, 30% direct traffic and 20% Google...then 36x months is a good multiple.
marrrko
Elite Member
- Oct 10, 2009
- 4,896
- 2,083
That's because of site potential. Probably this site can make a lot more money.