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Sale In Progress
By Max | June 29, 2007
Yesterday I bought the website that I was talking about. I don’t think disclosing the auction I was interested in affected the price too much. The last three sites that I have purchased have all been by directly contacting the seller and negotiating a BIN price. Thats why I have two bids on the auction back to back, one at $6000 and one at $10,000.
$10,000 is a lot of money for a site that is only earning $500/mon, but it appeared the seller had a few direct offers between $9000 and $10,000, so I threw my hat into the ring as well. He originally told me that $12,000 would take it down. Fortunately for me the seller wanted to buy a new motorcycle this weekend, so the immediacy of my offer led him to close the deal. While I was hoping to get the site cheaper (around $8000), I feel confident that I’ll be able to boost the earnings on this site quite a bit and realize the full potential of the site. With a little luck, I think I’ll be able to increase the value to $15,000 in the next few months. 50% ROI for flipping a website in two months isn’t bad.
The purpose of this blog is for me to document this process. My next few posts will likely revolve around the day to day goings on in closing the deal, transacting the site, and finally attempting to boost the revenue. If I leave out any details you think are important, please let me know.
Topics: Website Flipping Experiment |
June 29th, 2007 at 8:05 pm
One thing that you have left out is that while you are working out the logistics of transferring the site to your host, you have replaced the publisher number so that you don’t lose out on any revenue.
Another thing that you will probably talk about is hosting concerns. Does your server have enough power, or does it need an upgrade.
Finally, if your server does need an upgrade, should you pay the $50 monthly fee, or the $300 one time upgrade fee. For flipping, the $50 is cost effective. If you decide after a while that you want to keep it, the $300 more permanent solution will be better.
June 29th, 2007 at 8:43 pm
Bidding for websites above $10000 there are far fewer buyers. The market is a lot less liquid. Personally I would have waited a few days since the website was only listed on July 27th and you BIN’ed it on the 28th.
I know you bought the site for quick fixupper. In the past couple of months, I have been buying sites strategically. I just bought a site that makes none of its money through adsense, and alot of it through direct advertiers. Now I am looking for sites that make most of their money through affiliates sales to understand how they work.
June 29th, 2007 at 9:49 pm
Good work, I watched that auction….it looks like a really good site. Are your main intentions to just flip?? or build a collection of profitable sites??
June 30th, 2007 at 12:46 am
I would be very interested if you were to write a post detailing the pro’s and con’s of each type of site, i.e. a forum, blog, e-com, etc. It would help heaps in terms of being new to the whole site flipping thing etc.
Keep up the great work.
June 30th, 2007 at 1:02 am
I’m available for $hire$ to run your new site! Congrats
June 30th, 2007 at 4:42 am
Mark,
My intention is to flip this site, but it really depends on how everything goes. If I end up earning my investment back quickly I may decide to just let it ride for awhile. I think the site is a good one either way.
I’ll try to post about the various types of sites soon.
June 30th, 2007 at 9:40 am
Let the mayhem begin. Congratulations. I am looking forward to the series.
June 30th, 2007 at 12:12 pm
Can you tell us what kind of ROI you have had with the other websites you have bought?
June 30th, 2007 at 3:08 pm
Joe,
I have invested about $45k, and I am currently earning between $3000-$3500/mon from those sites. Thats conservatively an 80% annual ROI if everything stays the same in terms of revenue.
June 30th, 2007 at 4:08 pm
Nice work, good luck!
July 13th, 2007 at 12:41 pm
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