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I want to buy a site on flippa without overpaying

Discussion in 'Site Flipping' started by epoch707, Jun 25, 2012.

  1. epoch707

    epoch707 Newbie

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    Hey all, I am really interested in owning a website for the monthly income and don't want the downtime of building my own site. I am willing to pay for a site, so my budget is around $7,000. $10,000 if the site is REAL good. Basically my goal is $500-$1000 in monthly profit that is stabile with some but not too much work to maintain. Can you guys offer some tips to a newbie like myself? I definetly do not want to get scammed or overpay for a dud site:


    1. How old of a site should i buy?

    2. what are the stats I should look at (unique monthly searches?, traffic?)

    3. How many times monthly profit would be a suitable buy? I was thinking around 7X monthly profit for a site would be a decent deal

    4. any other warning signs of a site that has peaked and going downward?Thanks very much in advance
     
  2. poweronics

    poweronics Jr. VIP Jr. VIP Premium Member

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    I would recommend that you try and contact Meathead for guidance. Otherwise find a broker for yourself.
     
  3. bryanon

    bryanon Executive VIP Premium Member

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    First of all, if you're thinking of investing your whole budget in one site then I seriously urge you to re-consider.

    No matter how stable and safe the site is, there is ALWAYS a chance that it flops, so you should definitely look into buying 3-4 cheaper properties rather than 1 expensive one.

    As for your questions:

    1. The older the better. You want to see stability, as something that's been stable for 2 years is likely to remain stable in the future. Definitely stay away from sites that have launched very recently, i.e. everything that's less than 4-5 months old.

    2. Revenue (and the sustainability of it), traffic (and the sustainability of it), what sort of management work does the site require (to make sure you're not buying yourself a full time job instead of a passive money-maker).

    3. 7x would indeed be a very decent deal (for a good property). That said, sites that are stable, low-risk and relatively passive rarely go for less than 12x monthly revenue.

    4. There's far too many to count them here :) Go through some older threads in this section and you'll get a pretty good idea of what to look out for.
     
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  4. BobbaHead

    BobbaHead Registered Member

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    Usually the x10 monthly revenue of a website determines it's value.
     
  5. epoch707

    epoch707 Newbie

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    Hi I found some dating websites on websitebrokers that are priced at $2,000 with a claimed income of $1,500 a month. What sorts of things would you look at to verify if that's correct. Also, would you buy a dating site?
     
  6. Typlo

    Typlo Jr. VIP Jr. VIP Premium Member

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    This site will help some http://www.compete.com/us/ you can plug in a domain and it will give you traffic stats is it has high traffic numbers, Im not sure at what point it works but it has shown some good numbers for sites I was looking at and I could see that they only had traffic for a couple of months and where just trying to make a quick sale, and when I questioned the owner he confirmed the numbers I was seeing, but on the other hand I have a website that is fairly new and only getting about 50 to 100 visitors a day and it doesn't give me any data for it.
     
  7. Misfit

    Misfit Newbie

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    You can be sure it is not correct. Nobody in their right mind will sell a site making almost 1500 per month for 2000. It takes at least 2 weeks to get the sale completed if you are using Escrow. So what would be the point of getting rid of it?

    They will all claim that the sites take no time to manage but it is a lie. It can take as much as 80 hours a week to maintain and try to increase a pathetic site that only makes $500. Ask some of the webmasters around here. I am sure you will find they all log really long hours. If a site is just making the money with no effort it is not likely the webmaster will want to sell.

    But sometimes you can find something good
     
  8. epoch707

    epoch707 Newbie

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    I have changed my mind, the internet is just too dang risky for me. I will use my money and buy a high dividend yielding stock with a good balance sheet. I have two sites that I'll focus on to try to make $500 a month. Good day​
     
  9. thakarpratik

    thakarpratik Jr. VIP Jr. VIP Premium Member

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    Agree with bryanon post ,7x to 12x on profit is the ideal figure