Flippa strategies

The ideal pricing strategy that people use on flippa is - 24-30 times the current monthly revenue will become the price of the website. You can always start a bargain from that amount.

from ur description, I see that its a quite old forum and its doing well. So I think you should go for the top margin of 30times the monthly revenue.

btw can u send me the link of the forum, I might be interested.

30 times the monthly revenue????

I'd wait for a few site flipping pro's from here to comment before you go listing.

I'm not a pro but I have read tons on site flipping and 9 - 12 months is more common, sometimes more but I have never heard of 30 times the monthly revenue.

Don't go pricing your site just based on monthly earnings, you have some things that are very appealing to site buyers, such as aged domains and a DMOZ listing, people pay good money for those alone, just those 2 things mentioned could enable you to command a high price, so don't go go trying to make a site valuation based solely on monthly income.

But as for the 30 months revenue, I'd have to totally disagree with that advice.

Thanks
Andy

I have to agree with Andy, unless forums change it from 10 months revenue to 30 months revenue, but in my experience sites usually sell for around the 10 months revenue mark.

definitely not 24 - 30 months that's way too risky of an investment. Usually right around 10. What can change that is your google pr.

I have not personally sold many sites as I write this, though I have
considered it and if the right offer came along I would do so.

Selling a site is no different from selling any form of web property.
Buyers are interested in the same metrics and the more you can do to present
your site in a good light, the more money you will make.

If you have ever taken an interest in buying businesses in the real world (bricks
and mortar) you might be quite surprised when you head online and investigate
the web property marketplace. Web property can be very under priced when
compared to their real world counterparts. This might be because the whole idea
of buying and selling websites is very new, or it could be because of the virtual
nature of the asset. Whatever the reason, your job when selling your
membership site, if you want to get a high price, is to prepare a strategic
approach to maximize the final selling price.

Here is a list of the metrics you should collect and provide in a concise
document, which you can give to potential buyers who demonstrate serious
interest in your site.

1. Revenue - How much raw money your membership site generates each
month. Provide data for as far back as you can. If you can demonstrate
regular income over a long period and a positive growth curve, you will get
more for your site. Also be sure to show exactly where revenue comes
from, so if you have different membership levels, break down how many
members are in each level and how much money is generated. The more
specific you are the better.

2. Profit - Revenue is usually the most important metric, but buyers want to
know how much profit there is at the end too. In particular, if you can break
down the exact source of expenses, potential buyers can determine
whether they will be able to reduce the costs after taking over the site and
thus calculate potential profits if they become the new owner.

For example, if a buyer already has a dedicated server for hosting, they
could move the site to their servers and remove the hosting cost
component of the expense figures, thus increasing the potential profit. If
they don't know the source of expenses, then they can't do calculations
like that, which could impact the final selling price of your membership
site.

3. If you treat your site like a business then you have
accounting records. If you can generate a profit and loss statement for at
least the previous year, and a version broken down month by month, then
you have the ideal documents to show potential buyers all the details they
need to know about revenues, expenses and profits.

Warning: Don't disclose this data to just anyone, make sure they
demonstrate their seriousness and ability to source the funds to buy your
site. Don't put your profit and loss statements into a document you release
to the general public, just reveal summary figures and save the details for
the serious potential buyers.

4. Traffic Statistics - Buyers want to know how much traffic your
membership site gets, including unique visitors, page impressions, traffic
sources, traffic trend data, country breakdown, how much bandwidth the
site consumes and various other website data.

The best way to provide most of this information is to use the Google
Analytics service and print out reports and screenshots. Google Analytics
has become the de-facto standard for web stats and buyers trust the data
because it is from a third party. You can also provide data from your server
logs and statistic packages like AWstats, Webalizer or any stats package
currently on your server.

5. Source of new members and conversion data - How much traffic
you get won't matter as much as how you source traffic and
what conversion rate you get. You need to break down exactly
how you attract new members, how many members convert
from a given amount of traffic by source, and if possible, how long on
average members stay in your program given each source of traffic.

It's possible to get quite detailed when collecting data on traffic and
conversion and as always, the more information you can provide the
better. As a bear minimum, include how you drive traffic to your
site (the marketing techniques you have implemented) and
an average number of conversions per 1,000 visitors.

6. How much work is required to manage your site - Buyers want to know
how automated your membership site is and whether there are people
and/or systems in place to run the site. It's important to talk about how
many daily/weekly hours is required from the owner in order to keep the
site running and what exactly needs to be done. A buyer needs to consider
whether they can do what is required, whether they are prepared to invest
the time, and how easy it would be to hire someone to perform the roles
for them.

7. Attrition Rate - How long, on average, a person stays a member of your
site is a really important metric although what buyers want to know is the
lifetime customer value, not necessarily a time period members stay in
your program. If you have a well developed membership site, perhaps with
different priced levels of membership that you move people through (a
sales funnel), you can ramp up the lifetime value of each customer. This is
an area where experienced Internet marketers shine. Your resources and
data collection practices will dictate how much information on attrition and
customer value you can provide.

The above seven points represent the main metrics buyers care about, however
there is a lot more information you can provide if necessary. If your website is
well established and brings in more than six figures a year, expect smart buyers
to want a lot of detailed information. They need to be sure they know what they
are buying, especially if they are going to spend tens or hundreds of thousands
of dollars.

Woooah! 24 months? Not on Flippa. On Flippa, it's about 6 months revenue unless the site is very well known and respected, then it's maybe 12 months.

i can tell you about the forum. you wont make 700 per month from that for sure. possibly you can sell it for 700-1500.

If the earning has been consistent for 8 months then you can easily sell for between x10-x12 of the monthly earning ( the monthly earning should be after expenses ).

From what I hear its 8 times what the site is making. Otherwise if your just selling the domain names you can value them based on many factors.

I doubt you would get 24-30 times monthly revenue!

However I would aim for 12-18 months!

Normally its 10x but you have a few more selling points, i.e aged domains so you will probably be able to ask for more!

GoGetta

I've sold sites for up to 18X monthly earnings but those were sites that were totally passive and had earnings track records of over 1 year.

Yours seems like it is not very passive (it is stale because it takes time to maintain) but it does have a lot more features in the multiple domains, videos, manuals etc...

I guess the only way to find out for sure is to list it with a reserve of what you want to sell it for and see what happens. It only costs $19.

Lee

Yes, please do report back. Love to see how it goes - hope you get what you want for it!

Lee

Value can be determined from a number of things. As pointed out above, it's not just about monthly earnings, but if you don't explain very carefully to the Flippa community why your price is higher than the 9 - 12 monthly earnings (Which is stupid, why would you sell that cheap unless you knew it was going down hill?), than they will think you're crazy because the majority over there are very stupid and just go by what the site says they should pay lol.

The aged domains are worth money. What was the Google pagerank? That could play into it. I've sold sites making a few dollars a month for around the $800 mark, so selling this for 5 - 7 k just makes no sense to me. Keep it if that's the price they are willing to pay.

Do some "Flippa Recon", and look at past auctions and see how sites that brought in the same (or close to) amount that yours had.

$500/month revenue is great... you should be able to sell it for a nice profit.

Here's how to make it REALLY work for you...

you can put in your listing that you will "throw in" the forum and other domains to the BIN buyer, and that's when you give the details about the forum. If nobody buys via BIN, then you can just "throw those in" to the customer with the highest bid.

You can figure your BIN price also from your "recon".

That's what I'd do anyway

DeShon

I would say right now is really a bad time to list on Flippa. I am still new there but site values are just down really low. If it is something you can hold onto, even for a few months and re-check the stats at Flippa.

Best of Luck, you have got great assets there.

I'd say it also depends on the niche and the domain name, not just revenue. If it's a hot niche or a premium domain name (for real, not in your imagination), you can get more than just months x revenue for it.

PR won't matter much since it goes back to zero when the site ownership changes. However, I recently acquired a 12-year-old domain/web site that had been neglected. I moved/redirected one of my other related sites to it and within a month it was up to PR5.

Just sent you a PM Rita. And thanks for the free plug Alex :-D

The new fees on flippa were outrageous not so much because they were unreasonably high, but more because they were such a hike from SitePoint Marketplace.

SPM was around $20 to sell, and that was it. Flippa is $20 to sell and then a 5% success fee, up to a maximum of $498.

So one week, a $10k site cost $20 to sell, the next it cost $518 to sell.

That's why users were pissed. Thing was, sellers had been getting a free ride on SPM for too long (the service was massively underpriced). Fortunately flippa came in a month or two ago with the $99 up-front fee (which does away with the success fee completely), making it far more reasonable to sell expensive sites. So now it's $119 to sell a $10k website, instead of $518.

But either way you look at the new fees, they're kind of a moot point in my opinion:

Flippa.com is already far more popular and professional than it ever was as the SitePoint Marketplace, meaning selling prices have increased enough to MORE than cover any extra fees.

(that's my long-winded way of saying I heart flippa)

Hmmm...cool video. So much to learn but little time.

CJ, I'd love some help too, especially as I'm one of your Diamond members and I've sent a couple of emails now and a support ticket with no response...

Perhaps you could PM me?