How did this image hosting site making $300/mo sell for $25k?

Discussion in 'General Business' started by NewTier, Jun 10, 2007.

  1. #1
    Note to mods: if this is in the wrong section please move it kindly and leave me a message! Thank you.. dont give me an infraction again.

    I noticed here:
    http://www.sitepoint.com/marketplace/auction/7094
    This image hosting site makes only $300-$350 per month but why was it sold for $25,000?

    What are the servers that he is including?
     
    NewTier, Jun 10, 2007 IP
  2. quite

    quite Peon

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    #2
    it doesnt even make 300-350 a month, it breaks even because of the cost of the servers.

    i guess bcause a site with that many uniques has potential to eearn much more, with cpm ads mayb?
     
    quite, Jun 10, 2007 IP
  3. aaron_nimocks

    aaron_nimocks Im kind of a big deal Staff

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    #3
    If you read it then you will see it makes 300-350 after server costs.

    The reason it sold for so much is because the owner didnt monetize it to even close to what it can make. With those traffic stats you can easily pull in $3,000 - $5,000 a month if monetized properly.
     
    aaron_nimocks, Jun 10, 2007 IP
    NewTier likes this.
  4. Dominicc2003

    Dominicc2003 Peon

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    #4
    Potential and long-term investment.
     
    Dominicc2003, Jun 10, 2007 IP
  5. DXL

    DXL Peon

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    #5
    Don't mistake revenue for profit.
     
    DXL, Jun 10, 2007 IP
  6. AstarothSolutions

    AstarothSolutions Peon

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    #6
    Figure does seem a little on the high side from the revenue but ultimately anything is worth simply how much someone is willing to pay.
     
    AstarothSolutions, Jun 10, 2007 IP
  7. NewTier

    NewTier Notable Member

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    #7
    Aaron, what you said makes a lot of sense! He was using etology.com. He wasn't even using adsense. I'm sure if he used adsense or YPN he would have made a lot more money.

    Probably the new owner saw that potential and decided to buy it at $25k.

    If he can bring it up to $3000 per month, then it should take less than a year to make a return on his investment. :)
     
    NewTier, Jun 10, 2007 IP
  8. gkgk11

    gkgk11 Peon

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    #8
    Hey sss3d! I didn't know you were unbanned. How did the adwords campaign with your ebook go? Pm me.

    Ontopic: Probably its potential to earn more.
     
    gkgk11, Jun 11, 2007 IP