Has anyone else noticed that websites are selling for peanuts these days? There seems to be tremendous downward pressure on sale prices. I have seen quality websites being sold on Flippa for considerably less than 10X monthly earnings. Do you think this is because people cannot easily pay with credit cards anymore and have to use real money instead? I would be interested in your thoughts.
Perhaps it is just the economy. I know several people who stopped their domain names. I myself canceled a non-performing domain.
Oh it's not just Christmas -- it has been going on for a year now. And yes, it is the economy, absolutely. My suspicion is that easy access to credit (in the form of credit cards, but not only) made it easy for people to splurge money on speculative buys. Scientific research has shown that credit cards encourage people to buy things. Now things are super tight.
It is a combination of the perfect storm. It does not mean the site themselves are losing value. It simply comes down to some things such as... 1. The economy, and bottoming out of some online markets. 2. Lifestyle changes for some as they return to a 9-5 or more profitable venues. 3. Lack of serious buyers. Especially in the higher end valued sites. 4. Credit and capital investment crunch. 5. Mass exit of online folks leaving the industry. Mainstream and adult. Selling off assets. Those are the tip of the iceberg.