hi guys! over the past 3 or 4 months ive been looking at buying a file hosting site. Im willing to spend up to $8,000 on a site as they say they generate quite a bit in profit (it seems). Having never run one of these sites im not to familiar with what causes one of these services to do better than another. I know each can charge differently for their premium accounts, or reward better for file uploads. I have no problme dealing with the DMCA issues, and im aware of the massive bandwidth requiremnts. but something must be wrong or these sites would be selling at 10-20x profit, not 5-10x. Is it a situation where a particular file share site gets very hot bc it has a bunch of in-demand files? I appreciate any input / help. I can share with you all my current research: I emailed someone who had bought a high priced File host site on flippa with in the past year. I wont give details, as the buyer was kind enough to provide me with the results of his purchase, months after the transaction (i dont know him, so he was kind to give me the details.). He said that his site did not make the advertised revenue amounts and he regrets the purchase. He also got booted from adsense, but stated that he stilll expected the revenue to be good minus the adsense, and it was not. Anyone have any input? thanks
If their current premium membership size, monthly traffic volume, and network specs are good - I say go for it. With $8,000 though - you might do better in stocks.
I think the main problem with them, is traffic. Most image/file sites are full of pornographic material. But new sites/faster sites come out all the time, and people switch hosts all the time.
Yes that is one of the factor. But you should take into account of other factor such as the easyness of downloading from your website plus there are existing uploader to use your site.
Seems like a very inconsistent business to be in. If it's selling at 10-20x monthly revenue, something is up. That doesn't seem right... I'd be careful. Also, adsense isn't allowed on download sites--just something to think about. There are so many file hosts too. And for every big name, there are probably a dozen smaller file sites just starting out. True. Better yet, start a nice portfolio with it. Buy some stocks, bonds, futures, a couple of small websites, or develop a site, start a business, etc. Spread it around, and you'll be more secure in the end. If it were me, a file sharing site is one of the last things I'd buy.