Quick-Flip Method - Do these sites really sell well on Flippa?
  • I've been wanting to put the quick-flip method into play - where I buy a site that has a decent PR like 3 and up, and just sell links and then put it on Flippa, but are the buyers on Flippa really going to pay 10x monthly revenue for a site that's sole source of income is the links that are sold on it?

    I ask because I've been seeing a good amount of sites on DP that are PR3 and are selling for around $100-$150. I figure if I sell 10 links for $5 a month, I've already increased the revenue to $50 a month and could potentially sell it for $500 if it goes for 10x monthly revenue.

    I realize I can claim it makes $50 per month with no work, but are people really going to pay $500 or close to it for a site that makes $50 per month off links alone?

    I haven't really noticed any auctions on Flippa like this that have sold so that's why I wanted to ask you guys here.

    Has anyone done this type of flip recently and how well did it work out for you?
    Post edited by Unknown User at 2010-11-29 12:23:03
  • Who cares how it makes its revenue? Honestly, the buyer only cares about how much work they have to put in and if the revenue can be multiplied over time. I personally wouldn't do this type of "quick flip" method as you suggest. That doesn't mean your theory wouldn't work though.

    Why don't you test it?

    Trinity
  • [quote="Trinity"]
    Who cares how it makes its revenue? Honestly, the buyer only cares about how much work they have to put in and if the revenue can be multiplied over time. I personally wouldn't do this type of "quick flip" method as you suggest. That doesn't mean your theory wouldn't work though.

    Why don't you test it?

    Trinity


    Well this is one of the quick-flip methods that is mentioned in the ebook so that's why I asked.

    And from what I've been noticing, people do care where the revenue comes from. I've seen Adsense sites that sell for WAY more than 10-12x monthly revenue. A recent one that I saw sold for something like 5 years of revenue and it was only making money through Adsense.

    However, I've listed 2 of my Clickbank affiliate sites recently that rank #1 on Google for their main keyword phrase and make money consistently on auto-pilot every single month, but I'm having a hard time getting even 8x monthly revenue on these. For some reason it seems like Clickbank affiliate sites don't sell for nearly as much as Adsense sites do.

    I do want to test this method out, I just wanted to see if anyone else has had success with it before I go and spend $150 on a site only to find out nobody wants to buy something that relies on paid links for the revenue.
  • It really comes down to the person buying the site. Most people think that adsense will be consistent and to a point that's true, but for some one who knows how to work adsense they might not understand selling links (where, how, how much etc).

    All about finding the right buyer. Just to let you have your answer. I personally have sold two sites that have relied only on selling links (both sites made more then 250$ a month). If you think about it, directories are a good example of this method. Some directories rely solely on selling premium links.

    Trinity
  • It does depend on the site to some extent. I found this works really well with blogs.

    Multiple wise: you will get less than a site consistently earning with Adsense, but selling text links can boost revenue instantly, whereas Adsense could take months - hence why it works well for a "quick flip".
  • [quote="Thomas"]
    It does depend on the site to some extent. I found this works really well with blogs.

    Multiple wise: you will get less than a site consistently earning with Adsense, but selling text links can boost revenue instantly, whereas Adsense could take months - hence why it works well for a "quick flip".


    In your experience Thomas, when you sell a lite that pretty much only makes money through selling links, about how much monthly revenue do you average for the site on Flippa?

    I'm just trying to get a better understanding of what people will pay so I know what to buy these sites for.

    Thanks.
  • [quote="J1218"]
    In your experience Thomas, when you sell a lite that pretty much only makes money through selling links, about how much monthly revenue do you average for the site on Flippa?

    I'm just trying to get a better understanding of what people will pay so I know what to buy these sites for.

    Thanks.


    That's a very good question. The last blog I sold had revenue purely through links & a few banners & sponsored blog posts (forgot to mention these, they work well too) and went for $3.5k with monthly revenue around $300. It was a nice blog, but only about 6 months old.

    More realistic would be a 6-8 multiple.
  • Thanks a lot Thomas. That clears up a lot for me.

    What was the PR of that blog if you don't mind me asking?
  • [quote="J1218"]
    Thanks a lot Thomas. That clears up a lot for me.

    What was the PR of that blog if you don't mind me asking?


    PR4, Alexa 100k
  • Props for asking this question J1218.

    I find it really strange too how TLA as its sole revenue can fetch such a high price if you do 12x multiple.

    But I'm not to judge till I actually give it a shot.

    I'll take note on Thomas's suggestion on adding sponsored blog posts & banners. Thanks.
  • [quote="J1218"]
    I've been wanting to put the quick-flip method into play - where I buy a site that has a decent PR like 3 and up, and just sell links and then put it on Flippa, but are the buyers on Flippa really going to pay 10x monthly revenue for a site that's sole source of income is the links that are sold on it?

    I ask because I've been seeing a good amount of sites on DP that are PR3 and are selling for around $100-$150. I figure if I sell 10 links for $5 a month, I've already increased the revenue to $50 a month and could potentially sell it for $500 if it goes for 10x monthly revenue.

    I realize I can claim it makes $50 per month with no work, but are people really going to pay $500 or close to it for a site that makes $50 per month off links alone?

    I haven't really noticed any auctions on Flippa like this that have sold so that's why I wanted to ask you guys here.

    Has anyone done this type of flip recently and how well did it work out for you?


    One thing you may not be taking into account here is traffic. Typically adsense sites that are making decent money are getting a good amount of traffic from sources like SEO. Buyers do put value in the traffic and SEO a site has. You don't necessarily need a lot of traffic to a site in order to sell links on it. Also, the more revenue history you can show (even if it's from selling links), the more likely you are to get a 10x+ multiple.