Understanding Traffic Stats & Google Analytics Reports
  • [This is written for the benefit of others who are just starting out in this, like I am. I know it isn't too meaningful to those more experienced.]

    Looking at Google Analytics reports on Flippa, my first thought was, "What is this? What am I looking at?"

    I saw the numbers and understood their general meanings but couldn't really understand what they were telling me about a site.

    I came across two videos that helped a lot with interpreting the reports:

    Beginning Analytics
    Bounce Rate

    Couple of quick notes:

    Pages/Visit and Avg. Time on Site together are measures of how much users are exploring the site.

    Many sites have 3 to 5 pages/visit.

    Bounce Rate = "I came, I puked, I left."

    Average BR is 40-60%
    +70% BR is very poor.
    30% BR is extremely good.

    Bounce Rate and Time on Site aren't accurate measures of value for blogs because users usually visit, read the latest post, and then leave.

    Another thing I'm trying to get a feel for is traffic. Obviously 100 visits a month is really low and 100,000/month is high, but the numbers weren't meaningful until I started thinking about them in terms of potential selling price.

    For example, the average of the sale price for last 100 auctions (tossing out outliers such as $45k or $80k) that had between 4500 and 5500 visits/month and had revenue over $1 was $1768.

    I know the number isn't very accurate because some of these sites were a few months old while others were years old, and some had single digit income while others had four digit income, but it made "5000 visits/month + income" a lot more meaningful.
    Post edited by Unknown User at 2011-09-26 10:10:14
  • To help you with traffic. Here are a few thoughts:
    1.) Traffic is usually a result of quality content and quality backlinks. You can check backlinks at sites like majestic seo and open site explorer. Quality content can really only be checked by looking over the site.
    2.) The $ value of traffic is important. You can see what someone would have paid for the same amount of traffic on adwords at semrush.
    3.) Revenue per unique visit (monthly revenue / monthly unique vists) is a great indication of how well someone is monetizing a site. You'll normally see this under $0.10.

    What you're doing is perfect. You're getting a feel for what adds value to a site and what the "benchmarks" are. This is useful for due diligence and also for spotting undervalued sites!
  • Great tips, thank you!

    After figuring out how to scrape data from Flippa's search results, export them into a spreadsheet, and crunch the numbers in different ways (such as revenue/visit, net profit/visit, and net profit margin for each site) it becomes much easier to spot high value websites.
  • Definitely, you can also use flipfilter which is included for all members of our Inner Circle.