1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

How the hell did this site sell for 36K?

Discussion in 'Site Flipping' started by Georges, May 11, 2012.

  1. Georges

    Georges BANNED BANNED

    Joined:
    Jan 10, 2011
    Messages:
    421
    Likes Received:
    22
    https://flippa.com/2736282-over-1000-ad-rev-199k-visits-475k-pageviews-a-month-large-social-following

    it only makes 1200 monthly. $1200 x 12months = $14,400. the site just got sold for 30X monthly earnings. i don't get it.
     
    • Thanks Thanks x 1
  2. audioguy

    audioguy Power Member

    Joined:
    Jun 12, 2010
    Messages:
    609
    Likes Received:
    224
    Location:
    Anywhere in the world building WP sites.
    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)
     
  3. RedPanda9

    RedPanda9 Junior Member

    Joined:
    Mar 28, 2012
    Messages:
    178
    Likes Received:
    88
    I guess who ever bought it feels they can do a much better job monetizing it.
     
  4. brainstorm1

    brainstorm1 Jr. VIP Jr. VIP Premium Member

    Joined:
    Jan 13, 2012
    Messages:
    889
    Likes Received:
    329
    Occupation:
    IM full time
    Location:
    Deep south
    Are people forced to pay on Flippa? Might not be legit.

    Bidding wars can lead to egotistical prices too..
     
  5. GiftGuru

    GiftGuru Supreme Member

    Joined:
    Jul 4, 2011
    Messages:
    1,469
    Likes Received:
    876
    Gender:
    Male
    Occupation:
    Software Developer
    Location:
    Las Vegas, NV
    Home Page:
    Must be the pinterest traffic it is getting lol
     
    • Thanks Thanks x 1
  6. pyronaut

    pyronaut Executive VIP

    Joined:
    Dec 9, 2008
    Messages:
    1,229
    Likes Received:
    1,422
    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.
     
    • Thanks Thanks x 1
  7. danny1

    danny1 Regular Member

    Joined:
    Oct 8, 2009
    Messages:
    269
    Likes Received:
    112
    Few possible reasons:
    - Naive buyers.
    - Bidding frenzy
    - If the traffic figures (160k uniques/month) are legit, they could be underutilized.
     
  8. 2k9bomb

    2k9bomb Registered Member

    Joined:
    Sep 21, 2011
    Messages:
    78
    Likes Received:
    22
    They may see more potential in it
    [​IMG]
     
  9. Loco4SEO

    Loco4SEO Registered Member

    Joined:
    Dec 2, 2011
    Messages:
    91
    Likes Received:
    30
    Location:
    Los Cabos
    It's crazy to see a site that has pictures of cupcakes and no real content sell for that kind of money!
     
  10. ok888

    ok888 Jr. VIP Jr. VIP Premium Member

    Joined:
    Nov 23, 2010
    Messages:
    2,363
    Likes Received:
    649
  11. exbear

    exbear Junior Member

    Joined:
    Apr 22, 2011
    Messages:
    154
    Likes Received:
    34
    Occupation:
    entrepreneur
    Location:
    Moscow Russia
    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.
     
  12. trex191

    trex191 Regular Member

    Joined:
    Apr 26, 2009
    Messages:
    298
    Likes Received:
    37
    Occupation:
    marketing
    Location:
    United States
    this is normal. lots of site are bought like this 2-3 years of its worth
     
  13. Needalead

    Needalead BANNED BANNED

    Joined:
    Mar 20, 2012
    Messages:
    174
    Likes Received:
    109
    They obviously see more potential in the site. The owner knew that they had a gem.
     
  14. cashkar

    cashkar Newbie

    Joined:
    Apr 24, 2012
    Messages:
    32
    Likes Received:
    0
    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 :)
     
  15. jon_xx_x

    jon_xx_x Jr. VIP Jr. VIP

    Joined:
    Nov 15, 2008
    Messages:
    3,104
    Likes Received:
    1,458
    I didn't look closely at it, but majority of shit on Flippa is shady, so who knows. Might see it back on there in a couple weeks.
     
  16. contentcouch

    contentcouch Regular Member

    Joined:
    Oct 24, 2011
    Messages:
    374
    Likes Received:
    55
    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.
     
  17. nikolaalx

    nikolaalx Regular Member

    Joined:
    Mar 22, 2011
    Messages:
    231
    Likes Received:
    68
    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.
     
  18. allurre

    allurre Junior Member

    Joined:
    Nov 17, 2011
    Messages:
    103
    Likes Received:
    44
    Whoever bought it probably had a deep pocket. $36K to you could be $3.6K to him.
     
  19. Essence19

    Essence19 BANNED BANNED

    Joined:
    Aug 10, 2010
    Messages:
    830
    Likes Received:
    352
    Cup cake blog lol thats a nice name right there.those cupcakes do look quite tasty.may have to check it out more often.
     
  20. marrrko

    marrrko Jr. VIP Jr. VIP

    Joined:
    Oct 10, 2009
    Messages:
    3,895
    Likes Received:
    1,610
    Location:
    Good Old Europe
    Home Page: