I recently gained access to Flippa’s archive of sales data (thanks a million to the guys at Flippa), and I’ve been having a blast pouring through the stats. I’m going to share what I learn in a regular segment called “Knee-deep in Stats,” where we’ll look at the trends and historic data that reveal how to get top-dollar for our website sales.
For the love of God, Put Analytics on Your Website!
Travis wrote a post some time ago entitled, “Hey Knuckle Dragger, Install Google Analytics Before You Sell Your Website!” so it’s not like this assertion is breaking new ground, but I think you’ll be surprised by the data.
I took a look at all sites sold since January 1 of this year with a claimed monthly net profit of at least $25 and at least 100 unique visitors per month (to weed out the startup sites that would otherwise skew the data). Here’s what I found.
The sites without Analytics installed had a claimed monthly profit of $649 vs. only $619 for the sites with Analytics (4.6% lower), so it’s not like the deck was stacked in favor of the sites with supporting data. It’s a pretty even playing field.
Despite not having an edge in claimed earnings, the sites with Analytics sold for 213% more ($4657 vs. $2185)! That’s a 7.5 month multiple vs. a 3.4 month multiple favoring the sites that had Analytics installed (and uploaded at least 1 verified Google Analytics document).
If Some Data is Good, Isn’t More Data Better?
So we know that buyers love data — they’ll gladly pay twice as much for more substantiated claims. What happens when we start to add more Analytics data? Some listings will include more than 1 or 2 Analytics files — is it worth the extra effort? Take a look at the table and chart below:
[table id=20 /]
The column I want you to pay attention to here is the net multiple — it peaks at 6 attachments, rising pretty steadily at each increment before that. The bottom line — if you want to sell your site for a premium, you need to supply data (lots of it) to justify the expense.
So what about other attachments?
Well, they’re important too, but the specific impact is harder to judge since we can’t classify them by utility. An attachment that’s just a screenshot showing potential ad placement doesn’t carry the same value as one showing PayPal payments. As a result, the numbers are much more varied here — we do still see a drastic increase in net multiple when we go from 0 to 1 attachment.
[table id=21 /]
Honestly, it’s no surprise that sites with Analytics sell for more than those without — but more than a 2x boost over comparable sites? Definitely makes you realize that those extra 5 minutes it takes to install Analytics and send a verified report to Flippa are totally worth it!