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why people sell high revenue sites?

Discussion in 'General Business' started by Lorelei, Feb 3, 2007.

  1. #1
    i have seen many offers, both here and on other websites, where people sell sites with, say, 2000$ revenue monthly. or even 1000$. what makes people want to sell them in the first place, while u can keep harvesting a steady income?
    SEMrush
    just curious. i just think if i could make 1k off one site, i wouldnt sell it.
     
    Lorelei, Feb 3, 2007 IP
    EGS likes this.
    SEMrush
  2. sbongo

    sbongo Peon

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    #2
    if the income of the site can be easily generated,you can still make it after you have sell them for a big sum
     
    sbongo, Feb 3, 2007 IP
    Lorelei likes this.
  3. caricky

    caricky Well-Known Member

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    #3
    Definately agree there. If you new exactly how you got to the point of earning $$$$ monthly, sell for a lump sum and build numerous more new sites.

    If it was luck i.e you have no idea how the site succeeds then keep enjoting that monthly income..
     
    caricky, Feb 3, 2007 IP
    Lorelei likes this.
  4. -jay-

    -jay- Well-Known Member

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    #4
    bingo , you got it!
     
    -jay-, Feb 3, 2007 IP
  5. EGS

    EGS Notable Member

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    #5
    If the site requires a lot of time or work, and the webmaster simply doesn't have it, of course he/she is going to sell it! Or if they can get the money streaming in again with another site, why not just take a big buck and continue on with another site!
     
    EGS, Feb 3, 2007 IP
    Lorelei likes this.
  6. kh7

    kh7 Peon

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    #6
    Well, making a popular site on some subject isn't that easily duplicated for most people. You end up competing with your own former website, like Danny Sullivan in SEO. He can probably afford to do that, but each case is different - and not everybody can duplicate their success. I mean, in many niches the success is based on 'getting in at the right time'. That cannot be duplicated that easily.
     
    kh7, Feb 3, 2007 IP
  7. mubin

    mubin Well-Known Member

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    #7
    I thnk it is usually because they have a better idea that needs the investment.

    Or they have a better idea for the old site but dont want to compete against themselves.
     
    mubin, Feb 3, 2007 IP
  8. dcristo

    dcristo Illustrious Member

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    #8
    People's motivations change, life circumstances force you to sell. Cashflow could be another reason. There's really hundreds of reasons for wanting to sell a site, even a cashcow.
     
    dcristo, Feb 3, 2007 IP
  9. AnaB

    AnaB Peon

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    #9
    Well, to move on to other projects..Plus, what if you decide you hate the health niche after you;ve an empire there..it's just that. And then family commitments comes in too. If you can't manage all the sites you own and keep your family, selling one or two of the sites is always a good idea.
     
    AnaB, Feb 3, 2007 IP
  10. eddy2099

    eddy2099 Peon

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    #10
    Well, when buying high revenue site, just be careful. Although there are a majority of people who are honest about their dealings, there may be some which are not. Some may just inflate or edit their revenue to entice people from purchasing the site and finding out that they did not get what they pay for. Some may inflate income or mask the actual picture such as not mentioning what expenditure is needed to get that revenue or the income may be short-lived with some pending issues.

    I am not saying that everyone is dishonest but if you do want to buy a high-income site, make sure you know all the details first. It is better to be safe than sorry.
     
    eddy2099, Feb 3, 2007 IP
  11. MidwestMerchant

    MidwestMerchant Banned

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    #11
    I completely agree with this..Lets say I started a site in a new field of interest..and I grew that site to be making $500/month...What I would probably do is sell that site for 6k or so, then take that money and invest it into 2 or 3 different site's in the same type of category or maybe slightly different..Seeing as to how I got 1 site making $500/mo in the category, I can surely get 2 or 3 site's making that much (now that I have 6k to invest in links, quality designs..etc)..
     
    MidwestMerchant, Feb 3, 2007 IP
  12. landexcorp

    landexcorp Peon

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    #12
    A web site is essentially the same as a business. People sell it for a multitude of reasons. They have other interests, they have too many concurrent ventures, they need money (for another business or personal reasons), they do not have time, or they want to capitalize on the business by selling at the right time (when earnings are high).
     
    landexcorp, Feb 3, 2007 IP
  13. 8everything

    8everything Peon

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    #13
    Also: X,XXX$ revenue.. would that be the total profit earned? Who knows how much they spend on marketing to gain such amount of $$. So selling it might be more profitable, it really depends.
     
    8everything, Feb 3, 2007 IP
  14. mubin

    mubin Well-Known Member

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    #14


    Definatly should be very wary of people selling, and should try to find out why they are selling and get as much proof as possible?
     
    mubin, Feb 3, 2007 IP
  15. AvarianParakeet

    AvarianParakeet Peon

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    #15
    The reason that I have seen for most honest people selling a high revenue site, is that they are simply bored with it. A lot of webmasters build the site for a hobby, and once they are bored with it they just move on. Some also hold the honest belief that they have done all they can for it, and that someone else could improve the site and make it better than they ever could.
     
    AvarianParakeet, Feb 3, 2007 IP
  16. bobchrist

    bobchrist Active Member

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    #16
    There could be many reason;

    * They might have 2-3 more revenue generating sites, might be difficult to manage all.
    * They foresee that particular market is would be saturated.
    * High demanding clients of particular site.
    * Any diversification in business.
    * For utmost need of fund
     
    bobchrist, Feb 4, 2007 IP
  17. casperl

    casperl Peon

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    #17
    This is something i did not think before.. Interesting idea if utilized successfully ;) ..
     
    casperl, Feb 4, 2007 IP
  18. Sohan

    Sohan Peon

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    #18
    It could also be because the site does not have stable revenue.
     
    Sohan, Feb 4, 2007 IP
  19. ajsa52

    ajsa52 Well-Known Member

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    #19
    I agree, and I think another reasons could be:
    * Copyright infringements
    * Predicting a decline of success
    * Banned from search engines or advertisement networks
    * Died of webmaster :(
    * etc.
     
    ajsa52, Feb 4, 2007 IP
  20. Kyle

    Kyle Peon

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    #20
    Could be site flipping:

    When you own a site generating a healthy $1k profit a month, you may reach the point where you believe you can't increase the revenue any further yourself, or that growth will be slow. This could be due to a lack of motivation for the site content, general lack of monetization inspiration, etc.

    At this point you can essentially cash in the site (usually at a price approaching 10 months profit). You can then take this lump sum and reinvest it in more businesses where you believe you can add more value and increase growth.

    The purchaser buys your site either in the belief that they have the motivation or ideas to improve the site and increase the revenue, or simply as a long term steady investment.

    Basic formula is:
    * buy $1k p/m site for $10k
    * spend 3 months adding value to the site and marketing it
    * increase profit to $2k p/m
    * sell site for $20k
    * you've made $10k in 3 months
    * buy either two $10k sites, or one $20k site
    * rinse and repeat

    Having a steady income is great, but if you're clever you can benefit from a growing income...

    Kyle
     
    Kyle, Feb 4, 2007 IP