How the hell did this site sell for 36K?

Well buyers obviously valued the traffic and plan to 2x, 3x, or 10x the earnings when they own the site.
 
Revenue/month isn't the only factor. The expected growth in earnings is also considered.
 
May be that guy got some potential advertiser for that site or may be planning to promote his/her related business on it or many other probabilities to guess!! :)
 
I don't think it was bought at such an outrageous price. I believe if you have a real talent in upping the scale of this site then go ahead. Having a solid fanbase and solid social following, I could definitely see it become a #1 authority site for its huge niche.
 
I can't believe it, a basic free theme with content scraped (maybe autobloged)from other website that looks better than this.Can any one confirm it's an autoblog ???
 
Well, google it and you will see the owner was a woman. It's her passion, and she hasn't probably any technical knowledge like html/css styling, autoblog, seo. The site looks very real. The growth of the site looks very natural. It's 100% legit and her income probably too. That's why people want to pay that high price for it.
 
I am not very knowledgeable in this area at all. But one thing I did notice was that the CTR on the Adsense last month was a .3%. With some optimization, this could be increased 10X, which would make it go from $500 in Adsense revenue, to $5,000 a month in Adsense revenue. The site would be payed for in about six months and it's straight profit from there.
 
includes the twitter and facebook accounts too.
 
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)

Errr, its not always about how much the site makes. It could be where it ranks, for what kind of keywords or even the niche itself.

I was told by a friend yesterday that a guy from Korea was interested in my friends site. He discarded it as spam but a few days ago the guy asked how much he was willing to sell it for. My friend replied 40k, a number he took out of the air. The guy countered with a $35k counter offer which he promptly deposited in Escrow. As of yesterday. The thing is, the guy never asked how much the site was making. It only makes $50 p/d.

The moral of the story is, its not always about income.
 
Haven't looked at it very closely, again, but the net profit says $553/month? Its not even 30 times, more like 70.

But then again, the graph looks like going up and the buyer may see potential or may have made an impulse decision. The sale might not go through, who knows. It could also be shill bidding perhaps to boost up the prices the next time the site is put for auction, if it is.
 
I understand what your saying but i dont see the logic in paying less for a site that gets (taking your example) 90% of its traffic from search engines VS a site that essentially gets more of its traffic using Adwords, referrer traffic as well as direct traffic and lets say 20% Google (or a mix of search engines) traffic.

One of my websites gets 4% of its (organic) traffic from Google, 33% from backlinks, and 60% from direct traffic. The balance (3% is from other sources like word of mouth etc).

The reason I ask is because in theory if you got a large percentage of free traffic from search engines with keywords, it means less money required to spend on marketing to achieve the same results.

I hope i am making sense here...


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.
 
I understand what your saying but i dont see the logic in paying less for a site that gets (taking your example) 90% of its traffic from search engines VS a site that essentially gets more of its traffic using Adwords, referrer traffic as well as direct traffic and lets say 20% Google (or a mix of search engines) traffic.

One of my websites gets 4% of its (organic) traffic from Google, 33% from backlinks, and 60% from direct traffic. The balance (3% is from other sources like word of mouth etc).

The reason I ask is because in theory if you got a large percentage of free traffic from search engines with keywords, it means less money required to spend on marketing to achieve the same results.

I hope i am making sense here...

I definitely share the same philosophy of nikolaalx as far as the 90% Google SEO traffic being troubling. That means you are heavily subjected to algo changes from Google as well as having to do serious SEO work just to maintain your present traffic as all of your hungry competitors lower than you are busting ass to surpass you. You have only one main traffic source and it happens to be from Google, you live or die by Google alone. That scares me.

In this case, not only was a serious premium paid, but everyone on Flippa just saw it. How many websites directly competing against this cupcake site are going to instantly spring up as people see how much the site sold for and how it's not a very complicated niche to jump into?
 
The difference between direct traffic and google traffic is sometimes very small. Many people use google to search on "facebook" if they want to go to www.facebook.com. Your Google Analytics counts this as google traffic.
 
There are many reasons why you might pay more. For one the person who bought it
could be thinking they can earn more income from it than it generates now. Or you
never know the person...They could be just using this website to promote a website much
larger...Hard to say what there overall plan is without knowing them personally. Its like why
do people by a Hummer? Expensive and a waste on gas but people buy it because they want it
Sometimes logic does not apply.

-Elektra
 
Cupcakes are BIG. Cupcake trucks and businesses have been and continue to sprout up all over the place. It's my secret dream to get a food truck and go all around selling cupcakes that I bake. I love to bake, I love being outside, and I love interacting with people. Sometimes people put up blogs to let everyone know what their weekly schedule is going to be and where the truck will be parked.
 
I understand what your saying but i dont see the logic in paying less for a site that gets (taking your example) 90% of its traffic from search engines VS a site that essentially gets more of its traffic using Adwords, referrer traffic as well as direct traffic and lets say 20% Google (or a mix of search engines) traffic.

One of my websites gets 4% of its (organic) traffic from Google, 33% from backlinks, and 60% from direct traffic. The balance (3% is from other sources like word of mouth etc).

The reason I ask is because in theory if you got a large percentage of free traffic from search engines with keywords, it means less money required to spend on marketing to achieve the same results.

I hope i am making sense here...

Not everything is about Google though. I snoop on cupcake businesses and cupcake trucks to see how they run things. There is a food truck that always has a line that goes all the way down the street. On her boxes and bags, it says something like "Visit whatever.com to see our schedule." Maybe the person who bought the domain wants to use it for their physical business.
 
I don't get how he is getting traffic. I don't see him in the serps for cupcakes or cupcake. He claims 50% are from google. What am I missing ?
 
Time will tell. The flippa website has a big archive. It's very interesting to check big sales in the past, and how well the websites are performing now. Well you will be very surprised most sold websites don't exist anymore.
 
Interesting. I didn't actually know that.

Time will tell. The flippa website has a big archive. It's very interesting to check big sales in the past, and how well the websites are performing now. Well you will be very surprised most sold websites don't exist anymore.
 
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