Buying and Selling Websites Market Update Nov. 5 – Nov.11, 2010

This weeks report from sales on Flippa.com includes a site that was on last weeks report but the buyer never came through with the funds and the seller had to re-list the site to another bidder at a lower price. (Zeerk.com)

If you are selling a site keep this in mind.  It will happen to you if you sell enough sites, the buyer won’t come through.  It’s always good business to keep good communication between you and all the other bidders.  You never know when you need to go back to them to see if they want to pick up a site you previously sold.

Name

#Bids Sale Price

($)

Established Visitor/Month Profit/Month

($)

Multiple on Net Rev
Zeerk.com 1 52,000 Jul 2010 62,668 5,000 10.4
Elements4Health.com 16 $36,000 Mar 2008 73,644 $1,546 23.0
Umcssa.org 10 33,000 Apr 2010 8,294 3,000 11
Theofficialpageof.com 19 20,000 Feb 2010 90,000 0 n/a
Catchthedish.com 2 17,000 Aug 2010 30,000 0 n/a
Socialpromotionz.com 32 8,000 Aug 2010 550 1,550 5.2
Automobile-insurance.com 10 6,999 Jan  1997 127 0 n/a
MyCorralCoupons.com 24 5,800 Dec 2008 4,800 426 13.6
Usainstantpayday.com 2 5,100 Jan  2009 1,500 1,300 3.9
Thetraffictown.com 2 5,100 Aug 2010 27,379 1,330 3.8
Growmyhairfaster.com 1 5,000 Oct 2010 No details No details n/a
Mostarcadegames.com 7 4,100 Dec 2009 90,000 500 8.2
  • Zeerk was relisted because previous buyer was unable to bring in the required funds. Site was sold for a relatively lower price of $52,000. The info is different now from last weeks’. Site now has lone bidder as compared to 42 last week. Site has 3000 members and visits skyrocketed to 62,668 from previous 15,000. Table shows no profit but site claims to have a $5000 monthly profit just like last week so I opted to compute the multiple based on that.

About David Gass

David Gass is a serial entrepreneur, author and sought after speaker for his expertise in buying and selling websites, business financing and entrepreneurship. David has several programs available for teaching others to make money buying, selling and flipping websites. Find him on Google

5 Responses to Buying and Selling Websites Market Update Nov. 5 – Nov.11, 2010

  1. Ross November 15, 2010 at 11:25 am #

    This one is really great. And thanks for the tip. Failed transactions do happen because of lack or improper communication between the seller and the buyer. Redoing everything is unnecessary.

  2. Doug Lampi November 15, 2010 at 11:31 am #

    Why were the monthly multiples so low for Thetraffictown.com? It seems that several sites have a low Multiple On Monthly Revenue Ratio in this weeks report.

    • David November 16, 2010 at 7:20 pm #

      Good question. For sellers it’s not so good but for buyers we love multiples in the single digits. It could be demand, it could be the revenue was verified or a number of things. Without having the details it’s tough to know for sure.

  3. Noel November 17, 2010 at 11:49 am #

    That is correct, we really couldn’t tell. Multiples are dependent on two variables. First would be the monthly profit and the second would be the selling price. Even if the monthly profit is held constant, the selling price would of course vary as it is auctioned. But from a buyer’s perspective, of course low multiples would be an advantage.

  4. Erin November 18, 2010 at 12:21 pm #

    From a seller’s standpoint, that’s the purpose of reserve pricing. However, doing so has its own repercussions.

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