How this flippa selling profits the business owner?

by jeesteve

Posted: 11 years ago 5 replies

INTERNET MARKETING

Hi ,

I came across a sold site on a auction website. I wondered that the website with the software plugin sold just for $2000. But the owner claims that it earned $6000 the first day and good sales after that. My question what would be a reason for the business owner to sell a website for a cheap rate when it earns good income? From the description I came to know that it was a warrior forum selling. It would be helpful for me and for the people who like to get good knowledge on website flipping.

PS: I have attached the snapshot of the selling. Pls look at it for clear understanding.

Regards,
Jee

#business #owner #profits #selling

jeesteve 11 years ago

It would be helpful if some one replies
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dukegman 11 years ago

You have already mentioned the reason for that in your thread. You see, the owner said it did over 6000$ on the first day, but the owner did not mentioned the earnings that happened afterwards. So what I am guessing here is that the site did 6000$ the first day because it was the launch day. As you mentioned about the software plugin, I believe that's what the site is all about. So the software did 6000$ in sales for him the first, due to affiliates and all promotion, and then later the interest started to fade out. And by the way, the site is probably just making a couple hundred dollars per month. So he though it would be fine to sell it for 2000$ altogether. Because just think about it, who would sell a site for 2000$ that earns him thousands of dollars everyday. I hope that helped you.

The rule of thumb: A website is mostly worth what it earns in a year.
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minimalseo 11 years ago

Any owner selling any genuinely profitable web property on Flippa, does so because they know they won't be able to make that much dough anymore from it and if they don't sell it now, they won't be able to sell it high later. This is mostly the case, excepting rare instances due to other reasons that require them to sell.

As a prospective buyer, you will have to factor in the above as a given, and see if investing in the prop is still valuable to you, and if you have the ability to elevate it's earnings in anyway and if the potential for doing so is present.
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- jeesteve 11 years ago
  
  Thank you very much for your reply.
  
  If there are buyers for those kind of selling then there should be something which makes the buyer profitable right?
  
  How can a buyer go ahead with this software product which has already reaped its profit?
  
  Thanks
  
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  Koolestnerd 11 years ago
  
  I completely agree with the two above also one of the reason can be severe lack of funds and he doesnt mind to sell this to make way for otehr bigger projects requiring funds
  
  Thanks
  
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