Website Flipping Market Snapshot: 2-28-10


The data for the Most Actives, Top Sellers, Top Selling Niches, and Most Active Site Flippers is based on the market activity at Flippa.com. As the largest and most popular marketplace for site flippers right now, the market activity there provides valuable insight on what people are buying and selling.

MOST ACTIVES

www.DownloadMSNLiveMessenger.com – 72 Bids

This auction generated a lot of interest with 72 bids. The owner claimed the site was generating over $2,000 net profit per month. However, the site only launched the first week of January 2010 so there wasn’t a lot of revenue history. That would explain why it only sold for slightly more than one times monthly revenue (sold for $3,500). I personally would be a little leery of a site like this not just because it was basically new, but because it relied 100% on PPC to generate that revenue and it has some potential trademark terms in the domain. Reading through Microsoft’s trademark guidelines, it specifically states you cannot use their trademarks in the domain. This seems to be a reoccurring theme from week-to-week; websites with trademarks in them are popular but to me they are high-risk investments! See auction here.

www.Quit-Smoking-Expert.com – 70 Bids

The day this auction went live I had a feeling it would be popular. It ended with 70 bids and a sale price of $24,995. ClickBank products are always in demand but this one was especially in demand because it was well-established (established in 2005), was a leader in its ClickBank category, and had a long history of consistent revenue (just a little over $1,000 net profit per month). It also had a decent size subscriber list of 2,400 subscribers and a past customer list of over 1,200 buyers. See auction here.

www.AListOfPennyStocks.org – 45 Bids

This AdSense site was established in June of 2008 and was generating around $100 a month in net profits with only around 450 unique visitors per month. The site sold for $1,809 – about 19 times monthly revenue. See auction here.

TOP SELLERS

www.LanguageWrangler.com – $35,000

This was an interesting auction on many levels. For starters, you had an established website for sale. It was almost nine years old with a PR4. The owner claimed the site generated close to a million dollars over the course of the nine years – around $507K alone from 10/8 – 10/09. And even though the owners said they were selling so they could focus on their true passions – SEO/SEM – the bulk of the unique visitors the site got was from advertising. Furthermore, this nine-year old site only had 700+ backlinks to it. I’m not even a SEO guru but I can get that many links in less than a year’s time. Then there was this business about shutting off the url, letting their affiliate licenses expire (whatever that means), and building their targeted customer list from two other websites. Oh ya, and there was the fact that they changed the name of the url too. The bottom line is, reading through the auction listing gave me a headache because there was so much “stuff” going on that didn’t make sense.

Despite the complexities and confusion of the listing, the site sold for $35,000 – “only” 3 times monthly revenue. Again, if a NINE-YEAR old site has generated close to a million dollars over the years and supposedly was currently bringing in $12,000 net monthly profits, wouldn’t you expect it to sell for at least 10-12 times monthly revenue??? Regardless, I suspect the buyer was interested primarily in the highly targeted, detailed list of over 5,600 past customers that came with the sale. And given the fact that it was such an old site in a very popular, evergreen niche, it wouldn’t be too hard to recoup the initial $35,000 investment. See auction here.

www.Quit-Smoking-Expert.com – $24,995

I already highlighted this site in the Most Actives section above. With 72 bids and an established, successful ClickBank product, I would expect it to be in the Top Sellers category. See auction here.

www.ImageChan.com – $20,000

So how much is a three-year old site with a PR3, over 55,000 backlinks, and over 600,000 monthly unique visitors worth? Around $20,000 – that’s what this website sold for. Believe it or not, the owner didn’t monetize one penny of that traffic. What was even more amazing was that visitors to the site viewed, on average, 19 pages over the course of six minutes! I would love to have that kind of stickiness on my websites! See auction here.

TOP SELLING NICHES
This is getting to be a broken record but the top two best selling niches continue to be the Health and Internet Marketing niches with the third spot being a new niche every week. This week’s third spot goes to the Gaming niche.

MOST ACTIVE SITE FLIPPERS

These are folks that are obviously selling on a regular basis. And if they’re doing this on a regular basis, then they must be doing well or they wouldn’t bother. You should check out their profiles and see what they’re doing. As a buyer you may find a site that interests you and as a seller, you can see what type of site flipping business they operate to give you some ideas;)

*You can view the profiles for these sellers by clicking on their names but you need to be logged into your Flippa account to view them.
Legend – had 7 sites for sale
jumesh – had 6 sites for sale
marze – had 5 sites for sale

TYPES OF WEBSITES MOST WATCHED BY BUYERS

This metric provides a lot of insight on the site flipping market. These are the types of websites that buyers are watching. In other words, these are the types of websites that buyers are interested in buying today. As a potential seller, this is great information because if your website falls into any of these categories, be sure to tag them as such when you list them. And if you’re a short-term flipper, these are the types of websites you should be building for sale.

Ecommerce: 24 buyers watching
WordPress: 20 buyers watching
Autoblog: 16 buyers watching

GLANCING AROUND OTHER MARKETPLACES

Warrior Forum

Nothing new to report here other than startup blog packages continue to dominate. It seems to comprise over 90% of this marketplace now. Initially I thought these startup packages wouldn’t be so bad – especially for site flippers but boy was I wrong. An alert visitor to my website notified me that almost all of these startup packages come with personal rights only licenses. What does that mean? That means if you buy them, you can’t flip them! They are literally for your personal use only. As a site flipper then,there isn’t much value at all in this marketplace right now.

Digital Point Forum

This is becoming one of my favorite marketplaces to browse through. It’s like going to a flea market – you never know what you’re going to find. There is everything here from $10 junk websites to decent, established websites that sell for $3,000 or more. My only beef with this marketplace is that it’s a pain in the you-know-what to browse through given the forum format. And don’t even ask me about analyzing what has sold there – it’s nearly impossible to do without spending hours on it.

WebsiteBroker.com

I wonder if the sellers that list on this marketplace even realize there are better alternatives out there? Flippa for one would be a better alternative, but if you really think your website is highly valuable, why not list with an actual website broker? The bulk of the websites for sale on this marketplace are a joke. The prices the sellers are asking for are either ridiculously low or ridiculously high, which makes you wonder if these sellers are just clueless or if what they’re selling isn’t real. Take this listing, for example, the website was established five years ago and is a premium two-word domain. It supposedly generates around $10,000 net monthly revenue and the seller is only asking five times monthly revenue??? If the stats are real, a website like this should sell for at least double that – and perhaps as much as four times that!

BuySellWebsite.com

This is another marketplace where I just want to contact the sellers listing here and shake them! And this marketplace isn’t cheap either. At least with WebsiteBroker.com you can get a listing for about $10 for 90 days. Here you’ll spend $59 for a two-week listing! It’s crazy. And the “ads” that you can create are garbage. Take a look at this eye-candy of a listing. I don’t know about you, but I definitely want to spend $999,999 – the asking price of the website listed for sale…lol.

Were You Flipping Websites Last Week?
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