Latest Website Flipping News for Oct 2011

Flippa Trends in October 2011

It wasn’t a bad month for Flippa. They facilitated over $3,000,000 of website buying and selling on their marketplace. Sales prices averaged approximately 7 times monthly income for sites selling in October.

Interesting fact: In October, two sites with over 100 backlinks in Google and no revenue sold at $405 and $750. It will be interesting to see if Flippa’s new backlink search feature will affect prices for these types of sites.

Scitechdaily.com – A Quick Site Flip Goldmine We Missed in October

The site sold for $34,000 and had no monetization. Let’s assume you were to increase the revenue per unique visit to a meager $0.10. That would put your monthly income at $5284.20/month. You could likely get that by adding some relevant advertising to the site starting a few days after you took the site over. Give it a few months at $5,000/month average net profit and you could likely flip the site for $60,000. This would give you a $41,000 profit on the site in 3 months. You have to love the power of the quick flip of undervalued sites!

Site Flipping Market Headlines for October 2011

Did you notice any trends or have any successes or failures? Let me know by commenting below.

Website Flipping Market Snapshot Week Ending 10/26/2011

This week we added some additional analysis to the weekly snapshot. Enjoy!

Market Overview

This week 664 websites sold for a combined $1,074,606 making this a seven figure week for Flippa. The highest priced website sold for $110,000 with a majority of sites selling in the $150 range. 21 sites sold in excess of $10,000. Several of the sites selling in the $10,000+ range can be considered internet marketing related (SEO, Make Money Online, Web Design, etc.)

FlipWebsites.com Reader’s Sites for Sale

The sites below are sites submitted on our sell your website page that we didn’t buy ourselves.

www.womensdanceshoes.org
What is the average monthly unique visitors?:  200
What is the average monthly profit?:    $20.00
How many months has the site been profitable?: 15
How many hours per week do you spend maintaining the site?: 1
How is the site Monetized?: Advertising (CPM, CPC)
What are the primary sources of traffic?: Organic Search
How Much Would You Like to Sell For?:  $75.00
Additional Comments: (I removed the adsense code for now)  This site is ranked page one #1 on Google for main keyword.

www.collegiateliving.com
What is the average monthly unique visitors?:  3598
What is the average monthly profit?:    $4333
How many months has the site been profitable?: 24
How many hours per week do you spend maintaining the site?: 5
How is the site Monetized?: Selling a Product
What are the primary sources of traffic?: Organic Search, Email Marketing, Referring Sites
How Much Would You Like to Sell For?:  $55,500
Additional Comments: The site is deep rooted in best practice organic Google placement on many keyterms.  Proper SEO practices have been administered from day 1. Site traffic spikes dramatically in Q4 and most of the sales occur in Q4. I also have another domain name for sale that will make a nice package which is www.collegiatebuzz.com, a premium domain name as part of the package.

www.wsoworth.com
What is the average monthly unique visitors?:  238 in 18 days
What is the average monthly profit?:    $0
How many months has the site been profitable?: 0
How many hours per week do you spend maintaining the site?: 5
How is the site Monetized?: Advertising (CPM, CPC), Affiliate (CPA), Selling a Product, Selling a Service
What are the primary sources of traffic?: Organic Search, Referring Sites
How Much Would You Like to Sell For?:  $150
Additional Comments: I am in need of funds and want to sell this site. The site is new but has received 238 visitors in just 18 days with not much promotion.

Please contact us if you are interested in any of these sites. If you’d like to see your site listed here, please visit the sell your website page and submit your site to us.

Notable Sellers

Most Active Seller
Seller: Sun Shine
Total Revenue: $4,928
Sites Sold: 18
Avg. Sales Price: $274
Notes: This seller primarily uses a “template” style format where he or she sells aged blogs with only 7 days of revenue and calculates the monthy revenue from the 7 days.

High Activity & High Avg. Sales Price Seller
Seller: mycompanyname
Total Revenue: $3,806
Sites Sold: 7
Avg. Sales Price: $544
Notes: This seller sells brand new “turnkey” membership style websites with no traffic or revenue.

Notable Website Sales

Highest Priced
Site: mywibes.com
Price: $110,000
Bids: 1
Seller: mywibes
Notes: This site was profiting about $1000/month by placing advertising on mobile sites generated with their system. The site ended sold with only one bidder. With a claimed 1.3 million unique visits per month, this was likely a good deal for the right kind of buyer.

Most Active
Site: BookmarkingJuice.com
Price: $952
Bids: 74
Seller: WebKing7
Notes: This site was essentially a business-in-a-box by providing an outsourced social bookmarking service. The seller used a $1 no-reserve strategy, bonuses, and created curiosity by not revealing several “secrets” such as their traffic sources or outsourced provider’s name.

Our Watchlist

These are the sites that we were close to bidding on or buying but didn’t. At the time of posting this, they were still actively for sale.

  • librarium-online.com
  • psd-tutorial.com

10 Things You May Not Have Known About Flippa

Flippa is constantly changing the way sellers and buyers interact on their system. The optimist in me always believes they are making these changes to make their system a safer and better place to do business, but the pessimist (conspiracy theorist) in me wonders if some of the changes are to improve their bottom line.

In this post, I’ll analyze 10 changes Flippa has made from an exaggerated perspective of the optimist and the pessimist. It’s a bit of a (joking) rant, but perhaps can help us get a better sense of where the true motivations of Flippa lie.

#1 – No More Buyers Success Fees

Click here for details about the buyer success fee changes.

The Optimist – Wow, great news for buyers! Now buyers know exactly how much money they need to buy a site and no longer need to consider a success fee in their buy/no-buy decision. This sure makes things clear and transparent for buyers.

The Pessimist – Bad news for sellers! Shouldn’t sellers have the option to choose who can pay for the privilege of buying their site? Sellers are about to get a bunch of money for their site and buyers are about to spend a bunch of money. Hmm…I wonder who will have the most cash and is most likely to pay Flippa their success fee?

#2 – Minimum Auction Duration of 3 days

This used to be a one day minimum auction duration, but they changed to a minimum of 3 days. I never saw a big announcement on this, but maybe I missed it.

The Optimist – Why would anyone run an auction for less than 3 days? You need time for people to see it, right? The only people using 1 day auctions were probably selling junk sites anyway.

The Pessimist – Everyone knows most of the bidding on a site happens in the last 24 hours. Why do we need to wait for 2 extra days to actually get some action on our auction. If I want to run a 1 or 2 day auction, shouldn’t that be my choice? Wait…Flippa has all those upgrades right? I bet people  are more likely to pay for that “Featured” upgrade multiple times with a longer auction.

#3 – Amounts of Pending Bids Are Viewable By Everyone

Unless I’m mistaken, wasn’t it only the seller who could see the amounts of the pending bids? Now anyone can see the dollar amounts of pending bids. I also don’t remember seeing any announcements from Flippa about this one.

The Optimist – This is great for Buyers! Now I know exactly how much my next bid will need to be if that bid gets accepted.

The Pessimist – This sucks for Sellers! If I don’t accept a high bid from a bad bidder, I probably scared off other bidders because they saw an overpriced bid pending. It also limits my ability to rack up a bunch of small bids at the start of the auction. I can’t figure out where Flippa profits from this, but I bet it’s there somewhere.

#4 – Confidential Listings

Click here for details about confidential listings.

The Optimist – This is great for buyers and sellers. If my auction doesn’t sell, I get to keep my “secret sauce” secret. If I buy a confidential listing site, there are going to be far fewer copycats trying to reverse engineer it.

The Pessimist – It’s a lot like their “Hide from search engines and non-logged in users” paid upgrade. If privacy is important to me, why should Flippa profit from that? If I had to pay my credit card companies to keep my social security number private, I don’t think the government would like that very much!

#5 – No More Trust Score

Click here for details about the trust score changes.

The Optimist – Trust scores were meaningless anyway. At least this way I know if the person I’m doing business with has a positive history on Flippa.

The Pessimist – Man those folks at Flippa are so smart. To not be labeled as “New” on their system, you have to have bought or sold a site on Flippa. Think of all the listing and success fees they’re getting just from people trying to get their trust up!

#6 – Sites Less Than 2 Months Old Can’t Claim Any Revenue

I never saw any announcements about this one, but is kind of a big one for people who are into the quick build and flip model.

The Optimist – How is it even possible for a site to be making sustainable revenue in 2 months time? Anyone claiming they are making revenue with a 1 or 2 month old site are probably lying anyway. This will sure keep buyers safe from those people claiming potential revenue as actual revenue.

The Pessimist – So, if I’m an expert at product launches and generate $10,000 in two months, I can’t claim that? I made the money and I can prove it, but Flippa won’t let me claim it. Wow, some potential buyers are going to be missing out on some amazing deals. Maybe Flippa got burned by a bunch of “turnkey” site sellers and decided to treat all sellers with new sites as liars.

#7 – Twitter Upgrade

Click here for details about Flippa’s twitter upgrade.

The Optimist – Great job Flippa! You gave me another way to get exposure for my listing and increase the final price.

The Pessimist – Here’s yet another paid upgrade. I’d like to see a twitter stream that provides value, not one that is cluttered with auction notifications from people who paid to be there.

#8 – The Flippa A-List

Click here for details about The Flippa A-List.

The Optimist – Justin at FlipFilter provides a very balanced analysis and in some cases can be quite frank about the negative aspects of the sites. There’s a lot you can learn about how to analyze potential acquisitions even if you never plan to buy one of the sites.

The Pessimist – Flippa labels these as a trial valued at $100/month. Is it just a matter of time until they start charging people to subscribe? This also could be setting up a new paid “Upgrade” to have your auction considered for the A-List.

#9 – No More Buyer Guarantees

If you’ve never read them, here’s Flippa’s terms and rules and an update on the changes.

The Optimist – Seller guarantees are difficult to enforce legally anyway. This is a safe move to protect newbie buyers.

The Pessimist – I want to provide peace of mind to my buyers and I’m willing to stand behind my guarantees. I think I should have that right. Flippa was probably losing time and money from buyers who were disputing sales so this was a move to reduce the amount of work they have to do.

#10 – All Auction Links Are No Follow

Putting an auction on Flippa used to have SEO value because the links in the auction were do follow type links. Not any more!

The Optimist – Anyone putting up an auction just for a do follow link isn’t serious about selling anyway.

The Pessimist – Maybe Flippa plans to start charging for an upgrade for the option to remove the “No Follow” tag.

Conclusion

All joking aside, the fact that Flippa exists is a good thing for those of us who buy and sell websites as a hobby or as a business. Their positives far exceed any negatives in my view. They are the largest so they have the ability to set their prices as they see fit. If we don’t like it, we can choose not to use them.

However, based on some of the policy changes we’ve been seeing, I notice a few trends.

Trend #1 – Flippa seems to favor changes that benefit buyers even if it’s at the expense of sellers.

Trend #2 – Flippa is heavily favoring established rather than startup type websites, but still seems to tolerate brand new sites with no traffic or revenue.

Trend #3 – Flippa is not solely focused on making their marketplace a better place to do business. Generating revenue seems to be high on their priority list and they will continue looking for new ways to make money from buyers and sellers.

I invite you to share your views (optimistic and pessimistic) in the comments below.

My Watchlist: Some Interesting Auctions on Flippa

This is a guest post by James Frost who has over four years experience flipping websites. Among the many web properties he owns is Financial Services Review, a leading finance article directory. If you have a finance-related site to promote, consider submitting a unique article to Financial Services Review.

As an active website flipper, I constantly troll the auction listings on Flippa not just to find something to buy, but also to educate myself about different market niches. Studying the Flippa listings is like being able to look under the hood of a business and see how it all works – without even placing a bid!

Amidst the endless worthless auctions of autoblogs and zero revenue websites, there are always a few listings that I find interesting. Not necessarily because I think they are a great buy, but because they are different in some way. Here are a few auctions currently going on that you may want to check out: Continue reading “My Watchlist: Some Interesting Auctions on Flippa”

The Two Types of Websites That Sell The Best On Flippa Are…

I was wondering what types of websites sell the best on Flippa so I thought I would do a little research and find out. I had a pretty good idea which ones were selling well but I wanted some data to back up my hunch. It turns out I was right on the money.

According to Flippa’s clearance rate data going back to April 18th of this year, autoblogs and AdSense sites outsold all other types of websites. For those of you not familiar with what the clearance rate is, it is simply the percentage of sites sold. In the spring, these two types of websites had clearance rates of 75% and 73% respectively – well over Flippa’s overall average clearance rate of 56% at the time. Take a look at the graph: Continue reading “The Two Types of Websites That Sell The Best On Flippa Are…”

What The Domaining Diva Has To Say About Website Flipping

Domaining DivaIt’s been a while since I’ve done an interview so I’m glad I finally have one to post! This interview was with one of the “original” website flippers. She was flipping websites before website flipping was cool. She has been flipping sites going back to the Sitepoint days!

Her name is Suzanne Bucciarel and no, that picture is not of her. You’ll learn more about that picture in a minute. I learned about Suzanne from the Warrior Forum. Whenever there is a question about buying and selling websites on the forum, you’ll always see Suzanne with a helpful reply. She has a lot of experience with website flipping.

She continues to flip websites today but her focus now is on selling established websites (i.e. websites that have traffic and revenue) and creating high-quality, niche blog packages that she sells on her website that she started over a year ago, NicheBloggingTreasure.com. Here is the interview I had with her just a few days ago… Continue reading “What The Domaining Diva Has To Say About Website Flipping”