How I Sold A Website For $100,000+

96 replies
I recently sold a website for more than $100,000. I can't say the exact amount for obvious reasons, but before any haters come out and say that I'm lying here is the link to the press release from the investment banking firm I used to sell the website. They are the same guys behind the $14.9MM sale of bankaholic.

Now that we've got that out of the way I want to share some good advice from someone who's done it on how you can build a six figure website and the steps to go through to sell one as well.

Let's get started:

Step 1: Don't make a website about internet marketing

Step 2: No really, don't make a website about internet marketing

The reason why I'm listing this step twice is because I'm on the Warrior Forum and I know that most of this website's focus is on internet marketing products. Yes you can make a lot of money in this sector, but frankly there's a lot less competition and great money to be made in just plain making good websites.

Besides, most successful internet marketers are successful simply because of the money they've made selling internet marketing products. When that's the case, the only thing they can teach you is how to be like them and what they don't tell you is that becoming them is nearly impossible.

(Yes I do have my own product as someone might point out, but frankly the money I earned from selling it pales in comparison to the amount I've made from selling websites and actually running a real online business.)

Step 3: Find an interest you are passionate about and dominate it

This is the hardest step to be successful at because I'm sorry to tell you - yes it requires hard work. If you want to sell a website for a huge chunk of change you need to really be one of the industry leaders in your niche.

In my case I spent countless hours working on breaking news stories, contacting manufactures to get leads on potential new models of products and even flying out to industry conferences to cover them live. When my competitors were simply reposting information from CNET I had manufactures sending me out real product to test and then I'd do a video review of it too. (I sold the site in a little over an 18 month period since I started it)

It can't be overstated enough that you really do need to shoot for industry leading status. If you weren't a visionary and managed to register a bunch of domain names in the 90's you won't sell a website for six figures+ unless you build something truly authority based. You need a solid steady monthly income stream in the thousands of dollars per month range. Then you need to be prepared to give a boatload of information out while you're trying to sell it (much more than just Google Adsense and Analytics screenshots if you're using an investment banker) you'll need to talk about ways to improve traffic, revenue, what you'd do with $x to invest on the site etc. etc. etc.

Step 4: If your site is making a lot of money consistently every month do not sell it through Flippa.com sell it with an investment banker

You don't have to sell through an investment banker but based on my own experience I made a lot more money than if I would have simply sold it through Flippa.com. As I've said before there is a whole lot more to the picture of selling a six figure website than simply sharing Google Adsense screenshots and Analytics data. Investment bankers also have access to people with a lot of money - as in millions of dollars worth of money. The typical buyer on Flippa is not some company with millions of dollars to spend acquiring digital media assets. They're people like you and me just looking for a decent website to buy. What I'm saying is that investment bankers bring the big guns to the table.

Step 5: Reinvest your exit money into your business

I have several projects that I was looking to get angel investor funding for, but I really wanted to self fund my own projects until they were sustainable profitable entities. Besides, as soon as you get funding you basically have a boss again that you need to report to. I want to delay that as long as possible and if you can get a big sale it's a smart idea to try and leverage that success into another success. So that's exactly what I'm doing instead of buying a new car in cash.

Make sure you have something to do with the money other than pay a huge tax bill!


Questions? / Need Advice?

I hope I gave you a couple ideas for building a big site. Frankly the steps will be different for each niche but the main goal is always the same: be the best in your niche.

If you have a large website and need some advice on how to sell it feel free to contact me. I'd be happy to give you my opinion based on my own experiences and further clarify anything that might help you to decide what to do.


Why I am excited:

I'm excited about this sale for a variety of reasons and one obviously being the money. But it was just a little over a year ago that I got fired from my day job that was paying me $60k a year. This year I easily surpassed my goal to earn $150k in my first full year in business on my own. I can't say how far I went over that goal, but it's very exciting for the future. Getting fired from my day job was the best thing that ever happened to me that is for sure.

Again, if you have any questions or need advice feel free to post below or contact me directly.

To your success,

Chris

Edit: I forgot I can't link to specific articles on my blog on this forum so just feel free to see below in my signature if you want to check out my blog.
#$100 #sold #website
  • Profile picture of the author Roell
    Congrats on your success, Chris

    I have a few questions regarding being an Amazon affiliate.

    Do you only review products which you know that Amazon is selling as well?
    For example lets say you have a digital camera review website and by following the industry closely you see a manufacturer has just released a new camera but then notice that Amazon is not carrying this particular model as of yet.
    Would you still write a review on this new model (and not have an aff. link) or wait until you see it listed in Amazon and then write a review?

    Related question. Do you know roughly how long Amazon takes to list newer models to the market?
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  • Profile picture of the author Adie
    I can't open the link to your blog...
    Signature



    Moderator's Note: You're only allowed to put your own products or sites in your signature.

    Signature edited.
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  • Profile picture of the author Thomas Michal
    The net book reviews site was the 100k site?
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  • Profile picture of the author timpears
    Investment Banker?????

    Where did you find an investment banker that was into brokering web sites? That is not something I would have thought that they did. Who did you talk to? How did you get introduced, or find them to get them to sell your site for you? How old was your site when you sold it?

    How long did it take you to sell it once you signed on with them?

    By the way, congratulations on your success.
    Signature

    Tim Pears

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  • Profile picture of the author Biggy Fat
    Originally Posted by ChrisGuthrie View Post

    Getting fired from my day job was the best thing that ever happened to me that is for sure.
    And sooner or later, I will be able to say the same thing. Congrats on the HUGE payday man, God Bless!
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    • Profile picture of the author kindsvater
      Congrats Chris, and I'm glad you dumped that site.

      Why?

      Because it needed continuous updates with each new product.

      While obviously advantageous if you're willing to spend the time staying ahead of everyone else, it's still a job.
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    • Profile picture of the author jan roos
      Thats really cool Chris and a big inspiration for us marketers to create quality sites, because down the line they can be sold for a good amount. Big congrats on that achievent.

      I am going to try and build a huge site like that as well to sell for 100K down the line. If I may ask what kind of revenue was the site producing and what was the traffic sources for the site?

      Cheers

      Jan
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  • Profile picture of the author CMCarlin
    Congratulations on your success and thank you for sharing your insight.

    Regards,
    Carlin
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  • Profile picture of the author WillR
    Originally Posted by ChrisGuthrie View Post

    I recently sold a website for more than $100,000.

    In my case I spent countless hours working on breaking news stories, contacting manufactures to get leads on potential new models of products and even flying out to industry conferences to cover them live. When my competitors were simply reposting information from CNET I had manufactures sending me out real product to test and then I'd do a video review of it too. (I sold the site in a little over an 18 month period since I started it)

    Then you need to be prepared to give a boatload of information out while you're trying to sell it (much more than just Google Adsense and Analytics screenshots if you're using an investment banker) you'll need to talk about ways to improve traffic, revenue, what you'd do with to invest on the site etc. etc. etc.

    But it was just a little over a year ago that I got fired from my day job that was paying me $60k a year. This year I easily surpassed my goal to earn $150k in my first full year in business on my own.
    IMO, it sounds like a lot of hard work for something that 'might' pay off. I'd be very interested to see you do it a second time around - it's not very scalable business.

    I think there are a lot surer ways to make that much money in the same amount of time - and if built properly the income wouldn't just be once off.
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    • Profile picture of the author Kory Pearman
      Originally Posted by WillR View Post

      IMO, it sounds like a lot of hard work for something that 'might' pay off. I'd be very interested to see you do it a second time around - it's not very scalable business.

      I think there are a lot surer ways to make that much money in the same amount of time - and if built properly the income wouldn't just be once off.
      Lol?? Was this a serious post?

      You are in the wrong business if you don't believe in taking a risk for a big payoff..

      "sounds like a lot of hard work for something that 'might' pay off."

      Geez dude.. made me spit my Mountain Dew all over the place with laughter..

      Tell us how many sites you've sold for $100k+.. Please, we'll be waiting.
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  • Profile picture of the author bestdesigner
    That may be a good news for all those who want money online. Yes. But how did you sell it exactly? You never mentioned about it anywhere.
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  • Profile picture of the author spazz
    What was Founders brokerage fee?
    I have a few sites that I have considered offloading that should all bring in excess of $50k, but I have been brokering them word of mouth because of some sensitivity to potentially losing user-base if they found out sites were being sold.
    Was thinking of hiring an IB to handle them but have not really pursued it.
    Thanks in advance.
    Signature
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  • Profile picture of the author Sojourn
    Chris - that post on your site was a huge inspiration to me. Browsing through your blog and your netbook site gave me some great ideas of how to take one of my own sites to another level.

    Thanks for being so willing to share what has worked for you and congratulations on your success!
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  • Profile picture of the author Will Edwards
    Great post - very inspiring.

    Well done and good luck for the future.

    Will
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  • Profile picture of the author MikeMorgan
    Hey Chris ,

    Great post . Very Inspiring .

    I hope that you are using your formula on multiple websites .

    Mike
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    CPA Game Changer - Coming Very Soon !

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  • Profile picture of the author Rukshan
    Nice write up. You have shared some excellent points for site flippers.
    Signature

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    • Profile picture of the author ChrisGuthrie
      Originally Posted by Roell View Post

      Congrats on your success, Chris

      I have a few questions regarding being an Amazon affiliate.

      Do you only review products which you know that Amazon is selling as well?
      For example lets say you have a digital camera review website and by following the industry closely you see a manufacturer has just released a new camera but then notice that Amazon is not carrying this particular model as of yet.
      Would you still write a review on this new model (and not have an aff. link) or wait until you see it listed in Amazon and then write a review?

      Related question. Do you know roughly how long Amazon takes to list newer models to the market?
      I make money however possible. If Amazon doesn't have it, I can simply use another retailer like buy.com, bestbuy.com or pricegrabber etc. etc.

      The key is to always be thinking about the user. If you do that then you should be able to answer any questions yourself.

      Originally Posted by Adie View Post

      I can't open the link to your blog...
      I think that was removed as I'm not allowed to post links to my blog in a thread (I forgot) see my signature.

      Originally Posted by Thomas Michal View Post

      The net book reviews site was the 100k site?
      I sold the site for six figures but the exact price is not disclosed

      Originally Posted by timpears View Post

      Investment Banker?????

      Where did you find an investment banker that was into brokering web sites? That is not something I would have thought that they did. Who did you talk to? How did you get introduced, or find them to get them to sell your site for you? How old was your site when you sold it?

      How long did it take you to sell it once you signed on with them?

      By the way, congratulations on your success.
      I went to Elite Retreat (Shoemoney's event) which cost me $5k to attend but I met a ton of people making a lot of money with real online businesses (sorry I think internet marketing as a business isn't "real") and they mentioned the investment bankers that I ended up using. The only reason why he chose to work with me was because of the referral from the person I met at this event (it's a good reason why you should network in person as much as possible )

      Originally Posted by kindsvater View Post

      Congrats Chris, and I'm glad you dumped that site.

      Why?

      Because it needed continuous updates with each new product.

      While obviously advantageous if you're willing to spend the time staying ahead of everyone else, it's still a job.
      Any real online asset will require constant work. You can't expect some crappy auto blog to ever sell for any significant amount of money right? Yes there are a few sites that "run themselves" in a sense but in the end you'll always need to do real work to make money.

      Originally Posted by jan roos View Post

      Thats really cool Chris and a big inspiration for us marketers to create quality sites, because down the line they can be sold for a good amount. Big congrats on that achievent.

      I am going to try and build a huge site like that as well to sell for 100K down the line. If I may ask what kind of revenue was the site producing and what was the traffic sources for the site?

      Cheers

      Jan
      That is something I can't comment on unfortunately.

      Originally Posted by WillR View Post

      IMO, it sounds like a lot of hard work for something that 'might' pay off. I'd be very interested to see you do it a second time around - it's not very scalable business.

      I think there are a lot surer ways to make that much money in the same amount of time - and if built properly the income wouldn't just be once off.
      I've sold several websites before this for thousands of dollars again and I'm shooting for my next sale to be around $250k - $500k. It is a sustainable business model and one that IMO is easy to replicate if you are willing to put in the work.

      I'd be interested in what your ideas that are online scalable businesses though.

      I will agree that there is no guarantee of payoff, but frankly nothing in life is guaranteed. If you want guaranteed money then get a day job. I just know that it's a lot easier to make a lot of money without one.

      Originally Posted by bestdesigner View Post

      That may be a good news for all those who want money online. Yes. But how did you sell it exactly? You never mentioned about it anywhere.
      See above (found investment banker via referral. gave them information about website. they sold it for me. done)

      Originally Posted by spazz View Post

      What was Founders brokerage fee?
      I have a few sites that I have considered offloading that should all bring in excess of $50k, but I have been brokering them word of mouth because of some sensitivity to potentially losing user-base if they found out sites were being sold.
      Was thinking of hiring an IB to handle them but have not really pursued it.
      Thanks in advance.
      Contact me via email through my blog.
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      • Profile picture of the author goindeep
        Im sensing a super hot thread... i must be a psychic
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        • Profile picture of the author theentry
          Originally Posted by Andrei Rotariu View Post

          Im sensing a super hot thread... i must be a psychic
          I'm with you on this one a very motivating thread
          Signature
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          at multiple affiliate programs within one interface. Give it a try!
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        • Profile picture of the author Alex Barboza
          Originally Posted by Andrei Rotariu View Post

          Im sensing a super hot thread... i must be a psychic

          So am I. And a WSO would be really cool
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      • Profile picture of the author Lance K
        Originally Posted by ChrisGuthrie View Post

        Originally Posted by WillR View Post

        IMO, it sounds like a lot of hard work for something that 'might' pay off. I'd be very interested to see you do it a second time around - it's not very scalable business.

        I think there are a lot surer ways to make that much money in the same amount of time - and if built properly the income wouldn't just be once off.


        I've sold several websites before this for thousands of dollars again and I'm shooting for my next sale to be around $250k - $500k. It is a sustainable business model and one that IMO is easy to replicate if you are willing to put in the work.

        I'd be interested in what your ideas that are online scalable businesses though.

        I will agree that there is no guarantee of payoff, but frankly nothing in life is guaranteed. If you want guaranteed money then get a day job. I just know that it's a lot easier to make a lot of money without one.
        Very well said, Chris. And as far as Will's comment about once off income and not being scalable...I don't buy that. If anyone does, they're not thinking big enough.
        Signature
        "You can have everything in life you want if you will just help enough other people get what they want."
        ~ Zig Ziglar
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  • Profile picture of the author goindeep
    Originally Posted by ChrisGuthrie View Post

    I recently sold a website for more than $100,000. I can't say the exact amount for obvious reasons, but before any haters come out and say that I'm lying here is the link to the press release from the investment banking firm I used to sell the website. They are the same guys behind the $14.9MM sale of bankaholic.

    Now that we've got that out of the way I want to share some good advice from someone who's done it on how you can build a six figure website and the steps to go through to sell one as well.

    Let's get started:

    Step 1: Don't make a website about internet marketing

    Step 2: No really, don't make a website about internet marketing

    The reason why I'm listing this step twice is because I'm on the Warrior Forum and I know that most of this website's focus is on internet marketing products. Yes you can make a lot of money in this sector, but frankly there's a lot less competition and great money to be made in just plain making good websites.

    Besides, most successful internet marketers are successful simply because of the money they've made selling internet marketing products. When that's the case, the only thing they can teach you is how to be like them and what they don't tell you is that becoming them is nearly impossible.

    (Yes I do have my own product as someone might point out, but frankly the money I earned from selling it pales in comparison to the amount I've made from selling websites and actually running a real online business.)

    Step 3: Find an interest you are passionate about and dominate it

    This is the hardest step to be successful at because I'm sorry to tell you - yes it requires hard work. If you want to sell a website for a huge chunk of change you need to really be one of the industry leaders in your niche.

    In my case I spent countless hours working on breaking news stories, contacting manufactures to get leads on potential new models of products and even flying out to industry conferences to cover them live. When my competitors were simply reposting information from CNET I had manufactures sending me out real product to test and then I'd do a video review of it too. (I sold the site in a little over an 18 month period since I started it)

    It can't be overstated enough that you really do need to shoot for industry leading status. If you weren't a visionary and managed to register a bunch of domain names in the 90's you won't sell a website for six figures+ unless you build something truly authority based. You need a solid steady monthly income stream in the thousands of dollars per month range. Then you need to be prepared to give a boatload of information out while you're trying to sell it (much more than just Google Adsense and Analytics screenshots if you're using an investment banker) you'll need to talk about ways to improve traffic, revenue, what you'd do with to invest on the site etc. etc. etc.

    Step 4: If your site is making a lot of money consistently every month do not sell it through Flippa.com sell it with an investment banker

    You don't have to sell through an investment banker but based on my own experience I made a lot more money than if I would have simply sold it through Flippa.com. As I've said before there is a whole lot more to the picture of selling a six figure website than simply sharing Google Adsense screenshots and Analytics data. Investment bankers also have access to people with a lot of money - as in millions of dollars worth of money. The typical buyer on Flippa is not some company with millions of dollars to spend acquiring digital media assets. They're people like you and me just looking for a decent website to buy. What I'm saying is that investment bankers bring the big guns to the table.

    Step 5: Reinvest your exit money into your business

    I have several projects that I was looking to get angel investor funding for, but I really wanted to self fund my own projects until they were sustainable profitable entities. Besides, as soon as you get funding you basically have a boss again that you need to report to. I want to delay that as long as possible and if you can get a big sale it's a smart idea to try and leverage that success into another success. So that's exactly what I'm doing instead of buying a new car in cash.

    Make sure you have something to do with the money other than pay a huge tax bill!


    Questions? / Need Advice?

    I hope I gave you a couple ideas for building a big site. Frankly the steps will be different for each niche but the main goal is always the same: be the best in your niche.

    If you have a large website and need some advice on how to sell it feel free to contact me. I'd be happy to give you my opinion based on my own experiences and further clarify anything that might help you to decide what to do.


    Why I am excited:

    I'm excited about this sale for a variety of reasons and one obviously being the money. But it was just a little over a year ago that I got fired from my day job that was paying me $60k a year. This year I easily surpassed my goal to earn $150k in my first full year in business on my own. I can't say how far I went over that goal, but it's very exciting for the future. Getting fired from my day job was the best thing that ever happened to me that is for sure.

    Again, if you have any questions or need advice feel free to post below or contact me directly.

    To your success,

    Chris
    Well done!

    Seriously man, you deserve it.

    I totally agree 110% with your first 2 steps

    Mate, ive only ever tried the IM niche once in my 5+ years online and i realized within a few weeks that you can help people out and make money elsewhere much more easily.... And be totally dedicated and passionate about it!

    Im currently building the next best thing (i seem to think it is anyway and no its not my sig:/) in my secret bat cave and have been tinkering, testing and using my secret universal magic dust to get it cranked and launched very very soon.

    My goal is the same, to SELL IT FOR A LOT. But at the same time create something new. I decided to do something so unique, so niche and so targetted that by default the site will be the dominating pearl in the 'industry' if you can call it that..

    Thanks man, there are a lot of threads on this forum and its great to read a true success story.

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  • Profile picture of the author Dave Lianelli
    Chris,

    finally a fellow Warrior that 'gets it' in regards to selling a business online.

    People in the IM market don't know what they're talking about when they say 'sell it on flippa for 8 times the monthly revenue'.

    In the 'offline' world, someone like your banker easily pays 5 times the YEARly revenue for a good business.

    Thanks for the inspiring post.
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    • Profile picture of the author goindeep
      Originally Posted by Dave Lianelli View Post

      Chris,

      finally a fellow Warrior that 'gets it' in regards to selling a business online.

      People in the IM market don't know what they're talking about when they say 'sell it on flippa for 8 times the monthly revenue'.

      In the 'offline' world, someone like your banker easily pays 5 times the YEARly revenue for a good business.

      Thanks for the inspiring post.
      That is so true.

      A good business is a good business. Full STOP.

      I can only imagine the potential's that have sold fore mere thousands instead of hundreds of thousands or even millions only because the developer wanted the instant pay off or beceause he/she was not in tune and didnt have their finger on the pulse.
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    • Profile picture of the author M Thompson
      Originally Posted by Dave Lianelli View Post

      Chris,

      finally a fellow Warrior that 'gets it' in regards to selling a business online.

      People in the IM market don't know what they're talking about when they say 'sell it on flippa for 8 times the monthly revenue'.

      In the 'offline' world, someone like your banker easily pays 5 times the YEARly revenue for a good business.

      Thanks for the inspiring post.
      Shhhhhhh don't tell everyone

      I love flippa.......

      ......for buying established sites

      Using it to sell sites is just an unsustainable business model. Weirdly I wrote about this on my blog earlier in the week
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      If you are serious about online marketing come and Join our free community The Foundation
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  • Profile picture of the author bestitrix
    Wow, that's a large chunk of change. Congratulations on your sale. Since I've joined WF your post is one of the most motivational factor for me. Thank you for sharing your story and it really gives me and our fellow Warriors great inspiration.
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  • Profile picture of the author Fermina
    Is it better to sell in flippa rather than in WarriorForum?
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    Selling these Domains
    Dog-Breeds.com
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    • Profile picture of the author ChrisGuthrie
      Originally Posted by bestitrix View Post

      Wow, that's a large chunk of change. Congratulations on your sale. Since I've joined WF your post is one of the most motivational factor for me. Thank you for sharing your story and it really gives me and our fellow Warriors great inspiration.
      Originally Posted by M Thompson View Post

      Shhhhhhh don't tell everyone

      I love flippa.......

      ......for buying established sites

      Using it to sell sites is just an unsustainable business model. Weirdly I wrote about this on my blog earlier in the week
      I'll check out the blog post now.

      Yah, I sold the site back in November but I needed legal confirmation about what I could and could not talk about. Obviously by sharing this information my goal is to gain more credibility / hopefully more people read my blog.

      Originally Posted by dags View Post

      Is it better to sell in flippa rather than in WarriorForum?
      Probably... I didn't even know there was a place to sell websites here and I do like buying websites. Generally though I wouldn't ever sell unless you have a high quality site. If you know the site is quality the people with money looking to buy (such as myself) will know your site is trash as well.

      Originally Posted by Dave Lianelli View Post

      Chris,

      finally a fellow Warrior that 'gets it' in regards to selling a business online.

      People in the IM market don't know what they're talking about when they say 'sell it on flippa for 8 times the monthly revenue'.

      In the 'offline' world, someone like your banker easily pays 5 times the YEARly revenue for a good business.

      Thanks for the inspiring post.
      The multiples websites are sold for via Investment Bankers are generally higher than the typical Flippa multiple that's for sure.

      Ok going to bed now... up too late working again. Will catch up on any questions tomorrow
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  • Profile picture of the author thebitbotdotcom
    It just goes to show you that virtual real-estate is true real-estate.
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  • Profile picture of the author Fernando Veloso
    Congrats Chris and thank you for this inspiring post.

    This year we have sold a couple sites into the "offline" crowd, but none for more then 100K

    Hopefully 2011 is the year!

    Thanks for sharing!
    Signature
    People make good money selling to the rich. But the rich got rich selling to the masses.
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  • Profile picture of the author King Shiloh
    Banned
    Thanks for the eye-opening post.

    Congratulations for the milestone!

    I'm happy I learned something from the post.

    Thanks again man.
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  • Profile picture of the author sbucciarel
    Banned
    Originally Posted by ChrisGuthrie View Post

    Let's get started:

    Step 1: Don't make a website about internet marketing

    Step 2: No really, don't make a website about internet marketing

    The reason why I'm listing this step twice is because I'm on the Warrior Forum and I know that most of this website's focus is on internet marketing products. Yes you can make a lot of money in this sector, but frankly there's a lot less competition and great money to be made in just plain making good websites.
    Congrats on the excellent advice and the excellent sale. From your description, it sounds like it was a GNews site that you sold.

    I completely agree with you ... don't make a site about Internet Marketing.
    That is not what the big media companies with millions to spend are buying. Just look at the recent sale of TechCrunch ... millions of dollars for a blog that he spent 6 years building. That's not a long time to make that kind of money.
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  • Profile picture of the author arnoldsmithh
    Thanks for sharing your experience. It's quite useful.
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  • Hi,
    Congrats on your success. You are a living example that niche websites is still the best area in IM.
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  • Profile picture of the author yukon
    Banned
    [DELETED]
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    • Profile picture of the author Eager2SEO
      Congrats on that transaction! It is a shame that many of these Amazon programs are sold with a "minimum amount of work" mindset and you need 20 minutes a day to make 6 figures. Finally I see a realistic story.

      I have a site for electronic products that I got to rank well. I spent a lot of time writing quality reviews, but I always wondered if I could get manufacturers to send me samples to review. For one model I actually went to the store to take pictures while the salesmen weren't looking! I hate writing reviews based on what others say.

      Who do you contact in the company to get a review sample? I guess I could show them my site with their products that are ranking high.
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  • Profile picture of the author MichaelHiles
    Awesome Chris!! Great to see a real tombstone from an investment banking shop for a real deal. You're dead on 100% about selling through flippa. Any real, reputable cash flowing business can and should be easily sold through a reputable broker.
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  • Profile picture of the author BlondieWrites
    Congrats Chris and thanks for the inspiring post. A person could buy a wee bit of chocolate with a sale like that!


    Cindy
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    Working from home, work at home moms, make money online, internet marketing, PLR content
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    • Profile picture of the author Nutrifitness
      Thank you for posting here...didn't realize the post was on WF as well as your blog

      do you have any other recommendations for finding Investmestment Bankers to help as brokers aside from networking? meaning do you refer to your guy?
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      • Profile picture of the author inter123
        Hey Chris.

        I read about the success on your blog a few weeks ago, well done man! It is a fantastic achievement and big congratulations.

        Read your post here about the success with Amazon earlier in the year and to be honest at the time I was skeptical given what your read on IM forums are often hype.

        In some places the ceiling as to what one should aspire for is to sell ebooks online. Sure you can make money through ebooks but there are tonnes of other markets too and are well worth persuing.

        Well done one again.

        Jim.
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  • Profile picture of the author cevin
    "Step 5: Reinvest your exit money into your business"

    You are absolute right. Money spending or just banking them, will do you no good. Investment was my key step for a full blown success. Keep going, very glad of you.
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  • Profile picture of the author neteater
    i can only say wow
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  • Profile picture of the author paulie888
    Chris, congratulations on your success. Your advice is absolutely spot-on, the real money is outside of the internet marketing niche, despite what the Gurus may be pontificating.

    Technology blogs seem to be particularly thriving at the moment. Engadget's (tech blog) previous editor-in-chief, Ryan Block, is worth at least $20 million today.

    Your story reminds me of another big domainer who basically pioneered the flipping of site networks (notice that I mentioned network, he sold several related sites to a very wealthy investor to maximize profits). This was several years ago before Flippa was even a glimmer in our eyes, but Ed Dale sold his network of sites in 2006 (if I'm not mistaken) for over $5 million (exact amount not disclosed).

    Obviously, you'd need to have the proper contacts to sell this sort of virtual real estate, and I am almost certain he went through some sort of intermediary investment broker/banker like you did.

    Paul
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  • Profile picture of the author Scott Kennedy
    Oh wow, I used your site when buying my new netbook. How funny.
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  • Profile picture of the author mleopold
    Congratulations on your success. Stories like yours are a great inspiration for guys like me who are just getting started in IM. I hope to have half the success in a year as you have had. I am constantly reading/learning/and working towards my goals of quitting my day job.
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  • Profile picture of the author ebk86
    I am beyond impressed!
    I've been working hard for a few months, but this is inspiring me to step up my game!
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  • Profile picture of the author Millerking
    Congratutions Chris!

    Mind share the theme of your personal blog?

    Thank you
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    • Profile picture of the author JohnMcCabe
      Congratulations, Chris...

      Regarding your points #1 and #2...

      The biggest reason to step out of the IM niche is because there are a hell of a lot more of them than there are of us.
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    • Profile picture of the author Rita012
      Thanks for sharing your story. I agree that it's not worth selling a profitable site on Flippa. However, it's a great place to buy a site.

      I at one point had a brick and mortor store in which I used a 'business broker'. They do tend to have different types of buyers who are open to different types of business models.

      I'm surprised however that you used an 'investment banker'. I can see if you used a 'business broker' and SOLD it to an investment banker. I've never however heard of an investment banker acting as the broker.
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      • Profile picture of the author JohnMcCabe
        Originally Posted by Rita012 View Post

        Thanks for sharing your story. I agree that it's not worth selling a profitable site on Flippa. However, it's a great place to buy a site.

        I at one point had a brick and mortar store in which I used a 'business broker'. They do tend to have different types of buyers who are open to different types of business models.

        I'm surprised however that you used an 'investment banker'. I can see if you used a 'business broker' and SOLD it to an investment banker. I've never however heard of an investment banker acting as the broker.
        I have, but $100k is a little low for where these folks usually play. Most want to add another zero.

        Obviously, I'm not privy to the details, but my guess would be a combination of hearing Chris out as a favor to their mutual contact and Chris's site ending up as part of a larger deal...
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        • Profile picture of the author Lance K
          Originally Posted by JohnMcCabe View Post

          I have, but $100k is a little low for where these folks usually play. Most want to add another zero.

          Obviously, I'm not privy to the details, but my guess would be a combination of hearing Chris out as a favor to their mutual contact and Chris's site ending up as part of a larger deal...

          And don't forget the "+" in the title (as in $100,000+). He said it was six figures but couldn't divulge the specifics. It very well could be quite a bit more than $100,000.
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    • Profile picture of the author ChrisGuthrie
      Originally Posted by thebitbotdotcom View Post

      It just goes to show you that virtual real-estate is true real-estate.
      very true and you don't have to pay several hundred thousand dollars to get an asset that makes you what you would in rent with a physical real estate property either

      Originally Posted by Fernando Veloso View Post

      Congrats Chris and thank you for this inspiring post.

      This year we have sold a couple sites into the "offline" crowd, but none for more then 100K

      Hopefully 2011 is the year!

      Thanks for sharing!
      Where'd you find your offline crowd to sell to? Just traditional investors looking for a new area to invest in?

      Originally Posted by King Shiloh View Post

      Thanks for the eye-opening post.

      Congratulations for the milestone!

      I'm happy I learned something from the post.

      Thanks again man.
      Thanks I'm glad you enjoyed it!

      Originally Posted by yukon View Post

      Good job on the $100K sale.

      My question is, If you didn't sell the website how much revenue (ballpark) would you have had for a single year, just from running the site without a buyer.
      Can't disclose that now that I no longer own it sorry

      Originally Posted by paulie888 View Post

      Chris, congratulations on your success. Your advice is absolutely spot-on, the real money is outside of the internet marketing niche, despite what the Gurus may be pontificating.

      Technology blogs seem to be particularly thriving at the moment. Engadget's (tech blog) previous editor-in-chief, Ryan Block, is worth at least $20 million today.

      Your story reminds me of another big domainer who basically pioneered the flipping of site networks (notice that I mentioned network, he sold several related sites to a very wealthy investor to maximize profits). This was several years ago before Flippa was even a glimmer in our eyes, but Ed Dale sold his network of sites in 2006 (if I'm not mistaken) for over $5 million (exact amount not disclosed).

      Obviously, you'd need to have the proper contacts to sell this sort of virtual real estate, and I am almost certain he went through some sort of intermediary investment broker/banker like you did.

      Paul
      Yah, it's one of those woulda shoulda coulda things unfortunately but there are still opportunities to make good money with sites though that's for sure.

      Originally Posted by Nutrifitness View Post

      Thank you for posting here...didn't realize the post was on WF as well as your blog

      do you have any other recommendations for finding Investmestment Bankers to help as brokers aside from networking? meaning do you refer to your guy?
      Frankly the only way TO do it in my opinion would be to get out there and meet people. But I'd focus first on making something worth selling. After all, it doesn't matter if you have access to people like that but no way to make each other any money.

      Originally Posted by Eager2SEO View Post

      Congrats on that transaction! It is a shame that many of these Amazon programs are sold with a "minimum amount of work" mindset and you need 20 minutes a day to make 6 figures. Finally I see a realistic story.

      I have a site for electronic products that I got to rank well. I spent a lot of time writing quality reviews, but I always wondered if I could get manufacturers to send me samples to review. For one model I actually went to the store to take pictures while the salesmen weren't looking! I hate writing reviews based on what others say.

      Who do you contact in the company to get a review sample? I guess I could show them my site with their products that are ranking high.
      Have you contacted any company or their PR team yet to try and get product to review? It really is pretty simple if you hustle and work your magic on them even if your site isn't big in the beginning.

      Originally Posted by Millerking View Post

      Congratutions Chris!

      Mind share the theme of your personal blog?

      Thank you
      The theme I use on my personal blog is available for free with a course I sell (see sig) but it's not something I probably am allowed to direct link to.
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  • Profile picture of the author Andro
    Wonder if I can do that! and have a time of course to making a website
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  • Profile picture of the author sierraandmo
    Congratulations Chris!
    This is a great post!
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  • Profile picture of the author himanuzo
    Great tips! I am impressed with "investment banker" terms.
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  • Profile picture of the author ChiTownRoc
    reminded me of the book: Do what you love and the money will follow (great read, btw)

    Amazing! Very happy for you and thanks for sharing your exciting news. Inspiring!
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  • Profile picture of the author AndrewAU
    First and foremost congratulations Chris with this sale. It is a true achievement to build a site of this calibre from scratch and you’re no doubt satisfied with your reward.

    As much as your advice makes sense, there are a number of assumptions in Step 4 that are off the mark.

    While there is possibly a limit to the website transaction sizes for sales on Flippa, I’d argue that it would be beyond the 7 figure mark at this stage, let alone the 6 figures being discussed here. This is evidenced by numerous website sales such as s9.com (over $400K), ReTweet.com ($250K) and most recently Debate.org ($130K) just to name a few.

    Contrary to the original assertion, many of these do go to companies looking to spend big in acquiring quality digital media assets (Juggle's acquisition of Debate.org is but one example). We’re also in contact with a number of brokers and investment managers themselves who are coming to Flippa to browse for opportunities on behalf of more high-end buyers.

    The question about whether or not you use a broker/investment bank versus Flippa is more around how hands-on you want to be with your sale. In chatting to our 6 figure sellers, they typically have a wealth of business and technical savvy and love the feeling of being in control. This is especially true in terms of setting minimum bid and reserve prices, how they promote their website auction (to buyers both on and off of Flippa), how much information to publish or provide to different buyers and being able to accept/reject different bidders on Flippa.

    Website sellers who are less confident or acutely time-poor may otherwise wish to engage third parties such as brokers to manage the website auction on their behalf.

    While there is no way of knowing, I would hazard a guess that NetbookReviews.com would have sold for more had Founders Investment Banking made it a public auction on a website marketplace like Flippa and marketed the listing to their qualified buyers. In this scenario, additional high-end buyers that frequent the marketplace but were not on Founders’ books would have joined the bidding war – ultimately pushing up the yield.

    Either way, this is a great discussion to be having and I agree with my fellow antipodean Andrei Rotariu that the thread could be a long one – looking forward to the responses!

    Chris – congrats again. Wishing you best of luck and even greater success with your next projects.
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    • Profile picture of the author debra
      Originally Posted by AndrewAU View Post

      First and foremost congratulations Chris with this sale. It is a true achievement to build a site of this caliber from scratch and you're no doubt satisfied with your reward.

      As much as your advice makes sense, there are a number of assumptions in Step 4 that are off the mark.

      While there is possibly a limit to the website transaction sizes for sales on Flippa, I'd argue that it would be beyond the 7 figure mark at this stage, let alone the 6 figures being discussed here. This is evidenced by numerous website sales such as s9.com (over $400K), ReTweet.com ($250K) and most recently Debate.org ($130K) just to name a few.

      Contrary to the original assertion, many of these do go to companies looking to spend big in acquiring quality digital media assets (Juggle's acquisition of Debate.org is but one example). We're also in contact with a number of brokers and investment managers themselves who are coming to Flippa to browse for opportunities on behalf of more high-end buyers.

      The question about whether or not you use a broker/investment bank versus Flippa is more around how hands-on you want to be with your sale. In chatting to our 6 figure sellers, they typically have a wealth of business and technical savvy and love the feeling of being in control. This is especially true in terms of setting minimum bid and reserve prices, how they promote their website auction (to buyers both on and off of Flippa), how much information to publish or provide to different buyers and being able to accept/reject different bidders on Flippa.

      Website sellers who are less confident or acutely time-poor may otherwise wish to engage third parties such as brokers to manage the website auction on their behalf.

      While there is no way of knowing, I would hazard a guess that NetbookReviews.com would have sold for more had Founders Investment Banking made it a public auction on a website marketplace like Flippa and marketed the listing to their qualified buyers. In this scenario, additional high-end buyers that frequent the marketplace but were not on Founders' books would have joined the bidding war - ultimately pushing up the yield.

      Either way, this is a great discussion to be having and I agree with my fellow antipodean Andrei Rotariu that the thread could be a long one - looking forward to the responses!

      Chris - congrats again. Wishing you best of luck and even greater success with your next projects.
      You make some very good points. Especialy about some sellers being time strapped and/or not confident on sales presentations.

      Which brings me to my question, or request, are there any Flippa "brokers" that can take on the selling of a site through Flippa?
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      • Profile picture of the author Thomas Smale
        Originally Posted by debra View Post

        Which brings me to my question, or request, are there any Flippa "brokers" that can take on the selling of a site through Flippa?
        Part of my business is brokering and we almost always list our client's sites on Flippa for maximum exposure. With our experience, it's likely we would get more than a 10% higher price (our normal fee) than a first time seller would listing it themselves - so hiring a broker shouldn't be considered a cost.

        Having the piece of mind working with an experience seller/broker is one of the main reasons people come to businesses run by people like myself.

        Whilst we would always list on Flippa, that doesn't mean we don't have contacts. Our previous clients/buyers would always be spoken to and directed to the auction. It never hurts to get more exposure, especially on a marketplace such as Flippa where finding qualified buyers is relatively cheap.

        I would have to disagree that you would always get a higher price going with an investment banker/broker who would pitch it to private clients. Anyone with REAL experience in M&A will tell you that multiples vary massively offline and on very complex valuation models. The reason the majority of websites sell for relatively low multiples is because they are not properly established businesses and rely on single traffic/revenue sources. Once you have a real established website that could be considered a "business" you can often command a premium.
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    • Profile picture of the author sbucciarel
      Banned
      Originally Posted by AndrewAU View Post

      While there is possibly a limit to the website transaction sizes for sales on Flippa, I'd argue that it would be beyond the 7 figure mark at this stage, let alone the 6 figures being discussed here. This is evidenced by numerous website sales such as s9.com (over $400K), ReTweet.com ($250K) and most recently Debate.org ($130K) just to name a few.
      I have seen the sales referenced sell on Flippa and some that haven't been mentioned. I know of one that was bought by one of the big media companies so I know that those organizations do look for sites on Flippa. In one case, there were several of the media organizations bidding on one site, which undoubtedly drove the final price up. I talked to the seller so know who was bidding.

      So either way you go, broker or Flippa or a broker who will list a public auction and drive his contacts to it, this type of site is more than a sustainable business, contrary to what someone above said.

      Again, congrats to the OP. Great sale.
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  • Profile picture of the author paulie888
    Chris, I'm not sure if you've read the story behind Ed Dale's mind-boggling flip of his network of sites for over $5 million. I feel that you could probably get a lot more on your next flip if you build and develop several sites that fall under a niche "umbrella", so to speak. Just thought I'd offer some food for thought since you're probably now in the planning/preliminary building stage for your new site.
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    • Profile picture of the author Chris Hunter
      Originally Posted by paulie888 View Post

      Chris, I'm not sure if you've read the story behind Ed Dale's mind-boggling flip of his network of sites for over $5 million. I feel that you could probably get a lot more on your next flip if you build several sites that fall under a niche "umbrella", so to speak. Just thought I'd offer some food for thought since you're probably now in the planning/preliminary building stage for your new site.
      Paulie,

      Where is this info about Ed's sale?
      Signature

      Ok, sure. You can follow me on Twitter - http://twitter.com/Chris_Hunter ;)

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  • Profile picture of the author AidenChong
    Thanks for sharing your personal experience with us, Chris!

    I've just sent a PM to you, let me know what do you think about that.

    Thanks a lot, appreciate your inputs and insights given.

    Aiden
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  • Profile picture of the author nascar59
    congrats are in order,I'am a newbie on the block this info is awesome ty
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    • Profile picture of the author ChrisGuthrie
      Originally Posted by JohnMcCabe View Post

      Congratulations, Chris...

      Regarding your points #1 and #2...

      The biggest reason to step out of the IM niche is because there are a hell of a lot more of them than there are of us.
      Yes, it wasn't until I stepped outside of the over crowded / over hyped niche that I was able to find a lot more success.

      Originally Posted by Rita012 View Post

      Thanks for sharing your story. I agree that it's not worth selling a profitable site on Flippa. However, it's a great place to buy a site.

      I at one point had a brick and mortor store in which I used a 'business broker'. They do tend to have different types of buyers who are open to different types of business models.

      I'm surprised however that you used an 'investment banker'. I can see if you used a 'business broker' and SOLD it to an investment banker. I've never however heard of an investment banker acting as the broker.
      Yah, they are investment bankers / brokers I guess. I never got caught up on the terminology. I primarily went with them because I had several people I met sell sites for large sums of money with them leading the way before.

      Originally Posted by AndrewAU View Post

      First and foremost congratulations Chris with this sale. It is a true achievement to build a site of this caliber from scratch and you're no doubt satisfied with your reward.

      As much as your advice makes sense, there are a number of assumptions in Step 4 that are off the mark.

      While there is possibly a limit to the website transaction sizes for sales on Flippa, I'd argue that it would be beyond the 7 figure mark at this stage, let alone the 6 figures being discussed here. This is evidenced by numerous website sales such as s9.com (over $400K), ReTweet.com ($250K) and most recently Debate.org ($130K) just to name a few.

      Contrary to the original assertion, many of these do go to companies looking to spend big in acquiring quality digital media assets (Juggle's acquisition of Debate.org is but one example). We're also in contact with a number of brokers and investment managers themselves who are coming to Flippa to browse for opportunities on behalf of more high-end buyers.

      The question about whether or not you use a broker/investment bank versus Flippa is more around how hands-on you want to be with your sale. In chatting to our 6 figure sellers, they typically have a wealth of business and technical savvy and love the feeling of being in control. This is especially true in terms of setting minimum bid and reserve prices, how they promote their website auction (to buyers both on and off of Flippa), how much information to publish or provide to different buyers and being able to accept/reject different bidders on Flippa.

      Website sellers who are less confident or acutely time-poor may otherwise wish to engage third parties such as brokers to manage the website auction on their behalf.

      While there is no way of knowing, I would hazard a guess that NetbookReviews.com would have sold for more had Founders Investment Banking made it a public auction on a website marketplace like Flippa and marketed the listing to their qualified buyers. In this scenario, additional high-end buyers that frequent the marketplace but were not on Founders' books would have joined the bidding war - ultimately pushing up the yield.

      Either way, this is a great discussion to be having and I agree with my fellow antipodean Andrei Rotariu that the thread could be a long one - looking forward to the responses!

      Chris - congrats again. Wishing you best of luck and even greater success with your next projects.
      Hey Andrew,

      Nice talking to you earlier via email. I'd love to see a larger list of examples sold that were websites and not just domain names (I see S9.com is a website though).

      My only complaint about Flippa is that I wish there were more barriers to entry in listing websites. A lot of the stuff on there in my opinion aren't very high quality websites especially in the high end markets. I would love to see a barrier to prevent people that aren't qualified buyers from even seeing the high end websites for starters. I'm not sure on how that would be handled but I'd just feel more comfortable knowing that the only people looking at my website are people that can afford to pay for it (i.e. everyone that the investment bankers showed the website to) rather than people looking for ideas to copy off of.

      In either case, I know you mentioned some changes coming to your high end area so perhaps I'll be listing a few of the other sites I have there in the future if things change.

      Originally Posted by paulie888 View Post

      Chris, I'm not sure if you've read the story behind Ed Dale's mind-boggling flip of his network of sites for over $5 million. I feel that you could probably get a lot more on your next flip if you build and develop several sites that fall under a niche "umbrella", so to speak. Just thought I'd offer some food for thought since you're probably now in the planning/preliminary building stage for your new site.
      Well, I thought of building up a network of review sites but the workload was getting too high unless I wanted to start hiring full time employees. I have one already but didn't want to hire on too many people and frankly I just need the money to fund other stuff I've been wanting to do.

      You should send a link to his sale.

      Originally Posted by Thomas Smale View Post

      Part of my business is brokering and we almost always list our client's sites on Flippa for maximum exposure. With our experience, it's likely we would get more than a 10% higher price (our normal fee) than a first time seller would listing it themselves - so hiring a broker shouldn't be considered a cost.

      Having the piece of mind working with an experience seller/broker is one of the main reasons people come to businesses run by people like myself.

      Whilst we would always list on Flippa, that doesn't mean we don't have contacts. Our previous clients/buyers would always be spoken to and directed to the auction. It never hurts to get more exposure, especially on a marketplace such as Flippa where finding qualified buyers is relatively cheap.

      I would have to disagree that you would always get a higher price going with an investment banker/broker who would pitch it to private clients. Anyone with REAL experience in M&A will tell you that multiples vary massively offline and on very complex valuation models. The reason the majority of websites sell for relatively low multiples is because they are not properly established businesses and rely on single traffic/revenue sources. Once you have a real established website that could be considered a "business" you can often command a premium.
      Very good thoughts and comments. I guess as I mentioned before largely why I walked away from even looking at Flippa.com was simply because the high end sites already listed seemed so spammy so I just figured that most high end buyers wouldn't want to wade through the marketplace of crappy stuff to find the good ones and instead rely on their contacts like investment bankers to only bring them the good stuff.

      I know if I were a multi millionare I'd probably prefer doing that then wading through a bunch of listings without having them been prequalified by a broker etc. (in other words, they wouldn't have brought my site to them unless they knew it was worth the price I was asking for)

      That's mainly why I did this the way I did.

      Thoughts / Follow Up Comments?




      Thanks to all the feedback by the way and I'm glad some people that sound like they have some more experience are jumping into the conversation as well.
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      • Profile picture of the author Thomas Smale
        Originally Posted by ChrisGuthrie View Post

        Very good thoughts and comments. I guess as I mentioned before largely why I walked away from even looking at Flippa.com was simply because the high end sites already listed seemed so spammy so I just figured that most high end buyers wouldn't want to wade through the marketplace of crappy stuff to find the good ones and instead rely on their contacts like investment bankers to only bring them the good stuff.

        I know if I were a multi millionare I'd probably prefer doing that then wading through a bunch of listings without having them been prequalified by a broker etc. (in other words, they wouldn't have brought my site to them unless they knew it was worth the price I was asking for)

        That's mainly why I did this the way I did.

        Thoughts / Follow Up Comments?
        I think you did it the right way - although there's never a "right" way, it's personal preference, you just have the choice with established sites.

        There was a point I missed off as it didn't really flow with my post about privacy:

        Some people choose to use brokers and sell privately as a lot of the value of their site is goodwill, and thus selling publicly might negatively affect the site. Blogs (like yours) or forums are great examples of these. Readers and members can be very fickle and traffic could plummet if they realise the site is being auctioned. It can go in favour of the site too, but there's always a risk. I'll always check with my clients before listing on Flippa - as it can cause major issues in some cases. As long as your broker is honest with you about what they do, there shouldn't be a problem. I'm always straight up - and my clients know exactly how we work and whether or not our service is right for them; and my experience is that most other brokers are the same.
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        • Profile picture of the author Nutrifitness
          Originally Posted by Thomas Smale View Post

          I think you did it the right way - although there's never a "right" way, it's personal preference, you just have the choice with established sites.

          There was a point I missed off as it didn't really flow with my post about privacy:

          Some people choose to use brokers and sell privately as a lot of the value of their site is goodwill, and thus selling publicly might negatively affect the site. Blogs (like yours) or forums are great examples of these. Readers and members can be very fickle and traffic could plummet if they realise the site is being auctioned. It can go in favour of the site too, but there's always a risk. I'll always check with my clients before listing on Flippa - as it can cause major issues in some cases. As long as your broker is honest with you about what they do, there shouldn't be a problem. I'm always straight up - and my clients know exactly how we work and whether or not our service is right for them; and my experience is that most other brokers are the same.
          you are right..thank you for email btw. I know my private members only site and forum would be a tough sell..no way a Flippa site
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  • Profile picture of the author HaRrY84
    Amazing! For now I just want to sell an hemorrhoids-cure website for about $500. Could you advice me on something?
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  • Profile picture of the author Serendipitous
    Originally Posted by ChrisGuthrie View Post

    Step 1: Don't make a website about internet marketing
    Step 2: No really, don't make a website about internet marketing
    Step 3: Find an interest you are passionate about and dominate it
    Step 5: Reinvest your exit money into your business
    This!

    This is my plan.. Not sure how I would want to review products in my niche though, but it's a great idea. I've only seen one site doing it.

    Thanks for the post, and congrats on your hard work paying off.
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    • Profile picture of the author ChrisGuthrie
      Originally Posted by Serendipitous View Post

      This!

      This is my plan.. Not sure how I would want to review products in my niche though, but it's a great idea. I've only seen one site doing it.

      Thanks for the post, and congrats on your hard work paying off.

      The model can certainly be extended to any website type. It's just all about how large a niche it is and if you can become the dominant force or not.
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      • Profile picture of the author kharrison
        Good for you Chris; great thread. Learning a lot about virual real estate; Ed Dale of all people sells a course on using Flippa. It helped me gain (newb) insights.
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  • Profile picture of the author weatherforecast
    Congrats man . You are the best ! Thanks a lot for the tips , and you have right about internet marketing . It's full with that.
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  • Profile picture of the author gregbanks
    Originally Posted by ChrisGuthrie View Post

    I recently sold a website for more than $100,000. I can't say the exact amount for obvious reasons, but before any haters come out and say that I'm lying here is the link to the press release from the investment banking firm I used to sell the website. They are the same guys behind the $14.9MM sale of bankaholic.

    Now that we've got that out of the way I want to share some good advice from someone who's done it on how you can build a six figure website and the steps to go through to sell one as well.

    Let's get started:

    Step 1: Don't make a website about internet marketing

    Step 2: No really, don't make a website about internet marketing

    The reason why I'm listing this step twice is because I'm on the Warrior Forum and I know that most of this website's focus is on internet marketing products. Yes you can make a lot of money in this sector, but frankly there's a lot less competition and great money to be made in just plain making good websites.

    Besides, most successful internet marketers are successful simply because of the money they've made selling internet marketing products. When that's the case, the only thing they can teach you is how to be like them and what they don't tell you is that becoming them is nearly impossible.

    (Yes I do have my own product as someone might point out, but frankly the money I earned from selling it pales in comparison to the amount I've made from selling websites and actually running a real online business.)

    Step 3: Find an interest you are passionate about and dominate it

    This is the hardest step to be successful at because I'm sorry to tell you - yes it requires hard work. If you want to sell a website for a huge chunk of change you need to really be one of the industry leaders in your niche.

    In my case I spent countless hours working on breaking news stories, contacting manufactures to get leads on potential new models of products and even flying out to industry conferences to cover them live. When my competitors were simply reposting information from CNET I had manufactures sending me out real product to test and then I'd do a video review of it too. (I sold the site in a little over an 18 month period since I started it)

    It can't be overstated enough that you really do need to shoot for industry leading status. If you weren't a visionary and managed to register a bunch of domain names in the 90's you won't sell a website for six figures+ unless you build something truly authority based. You need a solid steady monthly income stream in the thousands of dollars per month range. Then you need to be prepared to give a boatload of information out while you're trying to sell it (much more than just Google Adsense and Analytics screenshots if you're using an investment banker) you'll need to talk about ways to improve traffic, revenue, what you'd do with to invest on the site etc. etc. etc.

    Step 4: If your site is making a lot of money consistently every month do not sell it through Flippa.com sell it with an investment banker

    You don't have to sell through an investment banker but based on my own experience I made a lot more money than if I would have simply sold it through Flippa.com. As I've said before there is a whole lot more to the picture of selling a six figure website than simply sharing Google Adsense screenshots and Analytics data. Investment bankers also have access to people with a lot of money - as in millions of dollars worth of money. The typical buyer on Flippa is not some company with millions of dollars to spend acquiring digital media assets. They're people like you and me just looking for a decent website to buy. What I'm saying is that investment bankers bring the big guns to the table.

    Step 5: Reinvest your exit money into your business

    I have several projects that I was looking to get angel investor funding for, but I really wanted to self fund my own projects until they were sustainable profitable entities. Besides, as soon as you get funding you basically have a boss again that you need to report to. I want to delay that as long as possible and if you can get a big sale it's a smart idea to try and leverage that success into another success. So that's exactly what I'm doing instead of buying a new car in cash.

    Make sure you have something to do with the money other than pay a huge tax bill!


    Questions? / Need Advice?

    I hope I gave you a couple ideas for building a big site. Frankly the steps will be different for each niche but the main goal is always the same: be the best in your niche.

    If you have a large website and need some advice on how to sell it feel free to contact me. I'd be happy to give you my opinion based on my own experiences and further clarify anything that might help you to decide what to do.


    Why I am excited:

    I'm excited about this sale for a variety of reasons and one obviously being the money. But it was just a little over a year ago that I got fired from my day job that was paying me $60k a year. This year I easily surpassed my goal to earn $150k in my first full year in business on my own. I can't say how far I went over that goal, but it's very exciting for the future. Getting fired from my day job was the best thing that ever happened to me that is for sure.

    Again, if you have any questions or need advice feel free to post below or contact me directly.

    To your success,

    Chris

    Edit: I forgot I can't link to specific articles on my blog on this forum so just feel free to see below in my signature if you want to check out my blog.
    Well done Chris!

    I could have done so much with your site >.<
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  • Profile picture of the author sweetgal
    Banned
    [DELETED]
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    • Profile picture of the author mike-seo
      Chris, congratulation and you inspired me in my work.

      One of the site I have , I offer Free Joomla , WordPress Templates

      I am planing to have a new template for this and then , to start implementing a membership and maybe later on to sell the website.

      What do you suggest Chris , what advice you can give me regarding with my website. What steps should I take so in the end I should sell for the max. of the $$$ I can.

      Thank you in advance.
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  • Profile picture of the author onlineleben
    Interesting to see that the netbook site has not been updated since July 2010. I wonder how the new owners want to recover their investment.
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  • Profile picture of the author Cay78
    Hey Chris..great post...can you PM with your email adress? I have been reserching this method, but wasn't sure if it was even possible to find buyers who would spend 6-7 figures on flippa...but when you mentioned invesment bankers, etc...a light buld went off...look forward to you PM...just got a couple of questions for ya...
    Signature

    There are 2 types of people in this world....those who get it and those who don't. The ones that get it know exactly what we are talking about. The ones who don't are left scratching their heads.

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  • Profile picture of the author suxes2005
    C'grats i have learned a lot here and it has really made
    me to believe in website flipping as a business.

    SHALOM
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  • Profile picture of the author helterskelter
    Congrats bud. That's pretty amazing. Thanks for sharing. You set a pretty high bar for yourself 18 months into the business - can't wait to hear how big your next venture is!
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  • Profile picture of the author rosesmark
    Hey Chris Guthrie

    Thank for sharing a outstanding Tips - last and least congrats
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  • Profile picture of the author giogio
    WOW is the word.
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  • Profile picture of the author JustKid
    I'm somewhat worried and scared that netbookreviews.com sold for so much for so little work compared to what I put myself through. Kinda surprising actually.

    Other then your community, the rest of the blog seems very simple. Eye opener if you ask me.
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  • Profile picture of the author Alfred M
    wow, inspirational story. and thanks for the advice as well!
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  • Profile picture of the author CAPTCHAbiz
    Congrats man!

    I agree on most part however not your first 2 points. In 2 months you can sell IM related website over $50k (and it is repeatable) with under $5k investment.

    Anyways, well done!
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  • Profile picture of the author ava681
    Step 5: Reinvest your exit money into your business

    this is really good advice cheers to the ts!
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  • Profile picture of the author PaulMark
    Chris, congrats!

    For the number of people here in the WF who know how to generate organic traffic, Chris' model should be followed.

    I was talking to David Frey a few months ago and we were going over a similar model. The key is attention. When you get the attention of the market you start climbing into the big money.

    IM Mindset - build a "dog" blog and sell on flippa for a few hundred. Low risk, low return.

    Entrep. Mindset - build a dog owner community, own the space, sell to Purina. Higher risk, crazy high return.

    There are a couple of guy sin the ATV and motorcycle markets right now selling their sites (businesses) for a million plus.
    Signature
    Just PM questions : Paul answers questions about rapid product creation, recurring revenue and creating online training programs. Mark answers questions about SEO, organic traffic, & local business marketing.

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  • Profile picture of the author cheekugames
    Step 3: Find an interest you are passionate about and dominate it

    Thats the key in my opinion, i always believed in it, now after reading this post i will now focus on this more then ever before..
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  • Profile picture of the author darkwizgemz
    Well done Chris. Thanks for sharing your experience. Keep it up.
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  • Profile picture of the author Steven Miranda
    inspirational to say that least! Anything is possible online!
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    • Profile picture of the author ChrisGuthrie
      Sorry I hadn't been on Warrior Forum in a few months so I'm catching up responding to people / replying to PM's but I did want to address other questions that came up.

      Originally Posted by onlineleben View Post

      Interesting to see that the netbook site has not been updated since July 2010. I wonder how the new owners want to recover their investment.
      Not sure how you're seeing July 2010 as the site is updated every few days

      Originally Posted by londonwarrior View Post

      How many times income did you get for the website, how much commission did you pay and where did you find the investment bankers? I'm surprised that they would sell something for that low a price, but if they will I'd like to give them a try.
      Can't say how many times income or what the income was and actually I don't think I can share the commission for the investment bankers either.

      Sorry I guess I just want to make sure I don't say anything I'm not supposed to.

      If you have a site you think is worth six figures contact me via my blog and I'll put you in touch with the right people.

      Originally Posted by Cay78 View Post

      Hey Chris..great post...can you PM with your email adress? I have been reserching this method, but wasn't sure if it was even possible to find buyers who would spend 6-7 figures on flippa...but when you mentioned invesment bankers, etc...a light buld went off...look forward to you PM...just got a couple of questions for ya...
      Hit me up via my blog: makemoneyontheinternet.com

      Originally Posted by helterskelter View Post

      Congrats bud. That's pretty amazing. Thanks for sharing. You set a pretty high bar for yourself 18 months into the business - can't wait to hear how big your next venture is!
      Thanks! Yes I got a ton of stuff in the works

      Originally Posted by JustKid View Post

      I'm somewhat worried and scared that netbookreviews.com sold for so much for so little work compared to what I put myself through. Kinda surprising actually.

      Other then your community, the rest of the blog seems very simple. Eye opener if you ask me.
      So little work? Did you know I flew to industry events to cover them live and rub shoulders with the manufacturers of netbooks etc?

      Originally Posted by carsonrathi View Post

      Congrats man!

      I agree on most part however not your first 2 points. In 2 months you can sell IM related website over $50k (and it is repeatable) with under $5k investment.

      Anyways, well done!
      I guess I was just saying that it's important to expand your horizons and not keep a narrow focus on Internet Marketing (as a niche) your whole focus.

      Originally Posted by ava681 View Post

      Step 5: Reinvest your exit money into your business

      this is really good advice cheers to the ts!
      That's what it's all about if you're trying to build a larger and longer term business!

      Originally Posted by PaulMark View Post

      Chris, congrats!

      For the number of people here in the WF who know how to generate organic traffic, Chris' model should be followed.

      I was talking to David Frey a few months ago and we were going over a similar model. The key is attention. When you get the attention of the market you start climbing into the big money.

      IM Mindset - build a "dog" blog and sell on flippa for a few hundred. Low risk, low return.

      Entrep. Mindset - build a dog owner community, own the space, sell to Purina. Higher risk, crazy high return.

      There are a couple of guy sin the ATV and motorcycle markets right now selling their sites (businesses) for a million plus.
      Definitely agree. Although I do have some smaller niche sites the idea is almost always:

      Entrep. Mindset - build a dog owner community, own the space, sell to Purina. Higher risk, crazy high return.
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  • Profile picture of the author Mike McAleer
    This is spectacular... I am trying to sell my sites now and I think I can do it with ease.
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    Recent domain flips : $8->$1000 Social recruiting Software dot com $8->$2000 MobileSalesSoftware.com
    Invest in domains without the hard work !
    Email for details...Mike McAleer at me dot com

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  • Profile picture of the author JK Nyerere
    Good post.
    However I think selling 7 sites that earn $30/day on flippa will achieve the same $100,000 payday and is a lot easier then your process.
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    • Profile picture of the author ChrisGuthrie
      Originally Posted by FreshDomains View Post

      This is spectacular... I am trying to sell my sites now and I think I can do it with ease.
      It's all about building the best site IMO

      Originally Posted by JK Nyerere View Post

      Good post.
      However I think selling 7 sites that earn $30/day on flippa will achieve the same $100,000 payday and is a lot easier then your process.
      Well, I wasn't saying there wasn't only one way to a $100k payday; however, if you read through my thread carefully you'd have noticed I said "a deal worth six figures" so you don't know how much I made.

      In any case, if you have sites earning $30 a day and you want to sell them hit me up lol
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