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Potential Arbitrage Situation For The Brave
By Max | April 6, 2007
I keep checking in on the Macfreeware site mentioned below. The auction is still sitting at $27k. This is what I would consider to be the upper end for a site like that. You’ll make some more money each month by increasing earnings, but if some of your other ad programs (you can’t count on ReviewMes for instance) don’t work out as planned, it could take a while to recoup the investment.
Interestingly enough, someone in the comments section of the auction listing mentioned that they would like to offer $35k, but with an installment payment plan. A lot of sellers want the money up front. This particular seller appears that way in his response. Now a brave soul could pony up $28k-$30k and lockup this auction. Then they could line up the guy who wants to pay $35k on an installment plan. You could very easily make $5k+ on this just by flipping the site. Assuming he takes three months to pay you back, you would be making $5k/$30k = 16% in just three months. That would be a fantastic annualized return of more than 60%.
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If anyone is thinking of trying this, make sure you don’t transfer the domain name until all money has been received. Also you should be looking for a sizable down payment so you know the buyer is serious.
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Topics: Buy Alert |
April 7th, 2007 at 7:37 am
A very interesting article - I never would have thought of purchasing a site to flip to someone willing to pay a higher amount in installments. Definitely a good idea for the brave!
April 7th, 2007 at 3:41 pm
What would you pay for MacUpdate?
April 9th, 2007 at 12:38 am
I don’t know. Is MacUpdate your site? Can you give some traffic or revenue stats?
My email address is max@maxtower.com if you want to contact me directly.