I'm clearing out all of my sites over the next few months to venture into a few other things. This has probably been one of the easiest to run as most of the sales come from affiliates and they organically build back links for us. If such a product was making around $100+ a month, how much should I ask for? I know a lot of people will offer 10 months or around that amount, but there is really no need to sell, as like I say, I hardly do any work on it. Help would be appreciated.
If it makes $100 a month, you're looking at around $1000-1200 for the product. Is it the migraine relief product?
$100 per month of passive income will sell for $1,000? I think I'll keep it then I think I'll just put it on Flippa and start it at 12 months revenue with no reserve Remember it's $100 a month, the copy, affiliate material + the actual rights to the product. And yes - I am.
Products sell of a lot more.. I've seen vendors selling their sites on Flippa without any revenue for $10K - $12K. (it was on fx niche) If it makes $100 a month that doesn't mean it's worth $1000. Who pays for the actual product, for example I've paid $3K to outsource my ebook/product alone, the coding of the site, the sales pitch etc all add up to almost $5000. - I though about selling right when it went live in Clickbank and had an offer for $4K, but as long as I couldn't sell it for a profit I kept it myself, so there you go... Instead of selling that website for $1K (peanuts) you're better off keeping it for yourself.
Hello, This is exactly my point Precious. You seem like your on the same wavelength. I don't necessarily NEED the money and sell every site I have, but the more I can sell at a good price, the better for me. I paid $4,000 for it originally, mainly due to the fact that the previous revenue was $200-250 per month. The extra $100 a month or so was coming from the Vendor selling the product, where I have just sat back and let the affiliates do the work. I don't necessarily expect $4,000, but would like to see something close to that amount (i've just checked the average is actually around $130 per month). Do you think Flippa is the right avenue then? Thanks
Flippa is one of the few places I know to buy and sell websites, and is the one marketplace where I know there are some serious buyers and sellers. I'd be interested to learn about some other places to sell and buy websites as well. In your case GrantDraper, I'd be of a mind to keep the website, and maybe do a little bit more work on it to push revenue up. I know that might not be an option as you are focussing on other things, but I would imagine you'd get a fair bit more than 1200 dollars for it if you sold it now. 4k? I am not so sure, but certainly a good amount more than 1200.
I've sold quite a few websites on Flippa before.. But it's going down the drain lately, you don't get that much exposure anymore since there's too many listings. (You need to upgrade your listing a few times before getting some solid views and eventually bids. Again I wouldn't sell such a website for peanuts.
Hey, Thanks for the reply. Yes, like I say, there is no way I'm taking 10 months revenue for it, that just isn't an option. Also, I don't really feel inclined to work on it - mainly due to the fact that I have purchased most sites on the basis of them being passive, or as close to passive as possible, which is exactly what this is. There are plenty of sites where you can earn $130 per month, but when you break it down, the work put in probably equates to minimum wage. I spend next to no time on this site and it has brought a steady income in. + as someone else mentioned there is a great deal of value in the back end and the age of the product itself. I'd be happy with anything above $2,500 I think based on the above, but expect it to go for a little more depending on the interest. Thanks
It depends upon the product your selling. If its The Migraine Relief, one would really be stupid to sell it for $1200. Don't fall for the 12x revenue bullshit. I know what it takes to develop and optimize a product. The sales copy alone will cost at least $1,500 if you opt for a good copywriter. Sometimes you'll even need to throw away a copy that doesn't convert. The graphic design, affiliate materials and the time you put into it personally, adds another few K to its value. A short while back I was looking for vendor products and I still am. So I'm open to such PMs from people willing to sell developed products. Please feel free to pm me before selling it.
The thing is, all it matters is revenue at the end of the day. If a product makes only $100 per month than obviously something is wrong with it, and it doesn't convert too well, so if you bought it, you'd need to redo the whole thing to make it convert. So the only valuable asset from the website is the $100 monthly revenue. That's what you're paying for at the end of the day. An experienced buyer won't care about the other stuff. However, since the site is in the low XXXX range, there are a lot of newbies with some money looking to buy something, and they're inexperienced, so they might pay more, and the site could be sold for more. Also, while selling, I've noticed that the once who try to get a more than the site is worth, usually tend to twist the truth, exaggerate a bit. So it's an ethical dilemma here. Should you be bluntly honest on your listing, or should you try to hype it up a bit, and make the site sound like bread and butter. To each his own I guess. I agree tho that the initial site content and the material is worth something (not just the revenue). So I guess the price could be 10-12x monthly revenue + development costs.
The amount of work done by the vendor to gather affiliates and do other things is worth a lot. The sales copy itself may need some work but a lot of things are nearly perfect (I suppose we are talking about themigrel) 12x is not necessarily the price to expect for a website even though it is what most sellers get. Yeah, I agree. Now it depends what the development costs are valued at. It could be as low as $750 but could go a lot higher. We should also consider the fact that the site doesn't require much work to sustain what its currently making. That is a better reason why a newbie or a very busy person would be willing to pay more for this because this doesn't require much work! Btw if its themigrel, I saw that the rankings have worsened a lot over time. Is the site penalized by google or what? SE traffic is always a big plus for the buyer, so if i were the buyer I'd like to know why the site has suffered so much in terms of organic rankings.
I think you should be looking for closer to 24-36 times monthly earnings. If I was looking to buy a CB product and found something that was a quality product with a well designed website and good conversions making $100 per month, I'd probably be willing to pay $3000+ Remember, it's not just current income, but the potential for increased revenue moving forward that makes it more valuable. A CB product is definitely more valuable (in terms of revenue multiple) than a basic content website.
>> I have read the sales letter --- It's pretty good actually... > Great design too.. I'm curios to see some conversions stats for this product, if you can post them. (since it's been launched to date) Al.
Might be able to buy a great bike for that money but not a vendor site. Have you even read the thread and what's been discussed?
This is a business of making money. Revenue is all that really matters. It is insignificant to the educated buyer how much has been spent developing it. IMO the site has been around and has been advertised to potential affiliates long enough to see that it just isn't likely to be much of a money maker. An investor wants to make their money back in a reasonable amount of time and then make profits. A reasonable amount of time is about 8-12 months for higher revenue sites and 10-16 for lower revenue sites. I would value this site at around $1400. There are ways to get more than this. You can play to the potential of the site. "Get just one affiliate who averages 3 sales/day and your revenue goes up to xxxx. Add 10 of those affiliates and you can quit your day job" You can sell the site like a MMO product and appeal to the potential buyers emotions and dreams vs. a straight up business proposal. You can increase the base revenue. To triple its value all you have to do is triple the revenue for 2-3 months. Being that the revenue is so low, you only need a hand full of direct sales per month to get there. You are selling based on the revenue not profit. Meaning if you PPC even if it cost you $400/month to make $200 it would be worth it. In three months you would lose $600 but would have tripled the sites value based on revenue. Using a 10 month factor, we went from 1,000 to 3,000 value and it cost us $600 so we netted $1400. Now this is a little risky but you should be able to at least break even with a decent ppc campaign. You may just list it and get someone to bid more because the site looks like it should be able to do better. This is the exception and not the norm. Best of luck with it.
Hello, I've hand picked the sites I've purchased, and I would say that a PPC campaign for 2-3 months is not worth while. I see a PPC campaign as ongoing effort not to mention a lot of money if you are not an expert. As far as the listing i'll just be honest. At the end of the day, people are right, it is a business so people value it based on: The product, design, copy, backend for affiliates. Potential Current revenue Work VS Revenue Ratio (IE: $100 for 10 hours is going to be valued at a lot less than $100 for 1-3 hours). I run this site with a partner who is away from the 1st-14th so have plenty of time to have a think. For people valuing this at $1,000-1,500, then I'd say you are missing out on a lot of good sites. You should judge a site on its own merit and go from there rather than thinking "I'll pay up to 14 months for almost any site". Thanks for all the comments so far - they have helped.
@GrantDraper If you don't feel comfortable selling it for $1500 then just don't sell it. You know better how much time and effort you have invested into this site and its potential, and all these factors add up and contribute to its final value/price. Again, I know what product creation involves both the efforts and the cost and I wouldn't sell a vendor site for anything lower than its value plus some profit (the efforts have to pay somehow, since it's a product and ebook that you basically own copyrights for it's not just your everyday wordpress script. Al.
It's all about the revenue. The copy and design etc. and what you spend on that is the risk you take when trying to establish a product and get it making money. But at the end of the day when you try to sell the site all that matters to an experienced buyer is the revenue. I won't pay over 10 x's revenue for any site. Why? Because there are just too many sites being sold for 10 X's revenue or less that also don't require much work. Also if if the seller is just looking for a lump sum of money then 10 x's revenue is usually more than enough for them to sell, remember even though the site they are selling "requires no work", they still want to sell it because that's just to much work. Also the market could change any day and that passive income could easily disappear before you make your money back.