Any seasoned Flippa vets here that can offer advice in listing a site that does $7k+ profit/mo

18 replies
Hey all,

Firstly, I'm a new Warrior Forum member. Yay me!

I'm joining to see if anybody has information on what to expect from Flippa posting, best practices, techniques, etc.

I have a website that sells a software for PC Gamers. The website is about 4 years old and has been very successful. It costs about $50 a month to maintain, and does between $6000 - $10000 a month in sales, all easily documented via Clickbank. As in, I have full information to back up sales claims. It has nearly 100% profit margins. It has been doing this year after year and has been very successful. I am looking to sell it so I can refocus my time into other things.

I put $0 into advertising/promoting it, which means the website could have its sales expanded substantially if somebody were to build up the affiliate system, do banner advertising, etc.

I'm looking to sell the website without publicly listing the identity, and I'm looking to sell it fast, and securely.

Could you guys please provide some advice on how to list this for sale, what my expected price could be, etc?

Thanks!
#$7k #advice #flippa #listing #offer #profit or mo #seasoned #site #vets
  • Profile picture of the author TryBPO
    We help people list their sites and put them in front of our buyers. If the site doesn't sell, we'll then go and list the site on Flippa and promote it for you.

    This isn't self-promotional, though...your site is a bit outside the price range of our current buyers. (We're better in the $10K - $100K range) Still - I think you're better off taking this to a broker that has buyers looking for this type of site.

    You're probably looking at $120K - $150K for this site. I would check with Flipping Enterprises (Now FE International) Ask for Thomas, he should be able to help you out.
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    • Profile picture of the author GamerZag
      Originally Posted by TryBPO View Post

      You're probably looking at $120K - $150K for this site. I would check with Flipping Enterprises (Now FE International) Ask for Thomas, he should be able to help you out.
      Thanks for the info, I am checking them out now.

      When you say $120k-$150k range, what do you use to get that number? I just checked, the past 1 month I've done approx $7,600 in revenue with about $7,550 in profit. How would that figure into the range you've listed?
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    • Profile picture of the author uk099
      Originally Posted by TryBPO View Post

      We help people list their sites and put them in front of our buyers. If the site doesn't sell, we'll then go and list the site on Flippa and promote it for you.

      This isn't self-promotional, though...your site is a bit outside the price range of our current buyers. (We're better in the $10K - $100K range) Still - I think you're better off taking this to a broker that has buyers looking for this type of site.

      You're probably looking at $120K - $150K for this site. I would check with Flipping Enterprises (Now FE International) Ask for Thomas, he should be able to help you out.
      Do you still vet people based on how many selfies they have on facebook or other social sites ?

      I think that is wrong some people not might like to have their pictures on fb linkedin etc and you are omitting them from your auction site.

      I was omitted from your auction site because I didn't have a picture of myself on the internet and I wasn't active on fb. I don't have time to do selfies just to prove who I am because end of the day I did video skype with Hot money and I provided access to everything requested.

      I feel you cater to ppl who social fanatics imagine if flippa did that they would restrict themselves. I found your services as value for money but I am put off from re-submitting my site.

      I would love to have you view on this. Sorry to hijack your thread OP
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      • Profile picture of the author TryBPO
        Originally Posted by uk099 View Post

        Do you still vet people based on how many selfies they have on facebook or other social sites ?

        I think that is wrong some people not might like to have their pictures on fb linkedin etc and you are omitting them from your auction site.

        I was omitted from your auction site because I didn't have a picture of myself on the internet and I wasn't active on fb. I don't have time to do selfies just to prove who I am because end of the day I did video skype with Hot money and I provided access to everything requested.

        I feel you cater to ppl who social fanatics imagine if flippa did that they would restrict themselves. I found your services as value for money but I am put off from re-submitting my site.

        I would love to have you view on this. Sorry to hijack your thread OP
        As you've mentioned, we vet both the site AND the seller listing the site for sale. It's not about the number of "selfies" you have on FB or other social media sites, it's about whether you're a real, verifiable person.

        If there's no way for us to verify your identity online (or you have a few "fake" friends on FB, hastily added Twitter account, etc.) we'd just prefer to not do business with you. It's a rule we've followed not just for sellers...but for potential partners, vendors, etc. Almost without fail...anyone that doesn't have a real presence online has been a waste of time for us.

        The process we use is rather strict across the board and we probably do miss out on some opportunities that are good, but it also helps weed out many of those that aren't a good fit, which is what our buyers are looking for.

        Sorry you got caught up with this. No offense, it's just the way we prefer to do business.
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  • Profile picture of the author Content Commando
    Your site sounds like a gold mine. If you don't mind, may I ask why you're selling it?
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    • Profile picture of the author GamerZag
      Originally Posted by Content Commando View Post

      Your site sounds like a gold mine. If you don't mind, may I ask why you're selling it?
      Sorry for taking so long to respond, Holidays and all...

      The site does do very well, especially considering that little/no effort goes into it at this point. It sells a software that is extremely well established and has undergone dozens (likely hundreds) of revisions, making it near perfect. So it basically sells, over and over, on its own.

      I'm looking to sell it just so I can focus on a new project of mine, another piece of unrelated software (does not compete in any fashion).
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  • Profile picture of the author PerformanceMan
    You put $0 into promoting it? That includes what you're paying affiliates?
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    • Profile picture of the author GamerZag
      Originally Posted by PerformanceMan View Post

      You put $0 into promoting it? That includes what you're paying affiliates?
      I put $0 into promoting it, yes. While I do use Clickbank, I use them mostly as a payment processor since I haven't really done much to gain affiliates. I would estimate about 1/10th of my sales are from affiliates.

      So that being said, all my figures are what I am actually taking in as revenue (as in, this is the actual checks that I am cashing). If somebody came in and build up affiliates, promoted the product, etc., they would likely make a killing. I just don't have time to do that right now as I'm focusing on a new project.
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  • Profile picture of the author ColdWritingLLC
    Originally Posted by GamerZag View Post


    I have a website that sells a software for PC Gamers. The website is about 4 years old and has been very successful. It costs about $50 a month to maintain, and does between $6000 - $10000 a month in sales, all easily documented via Clickbank. As in, I have full information to back up sales claims. It has nearly 100% profit margins. It has been doing this year after year and has been very successful. I am looking to sell it so I can refocus my time into other things.

    I put $0 into advertising/promoting it, which means the website could have its sales expanded substantially if somebody were to build up the affiliate system, do banner advertising, etc.

    I'm looking to sell the website without publicly listing the identity, and I'm looking to sell it fast, and securely.
    The problem with saying you have put in $0 in advertising/promotion is that people don't buy websites on speculation. I could invest $100,000 in a website but that doesn't mean that magically it's going to improve it's revenue. Minor point, but manage your expectations - you aren't guaranteed to do better just because you spend money.

    Now, to the real issues at hand - why won't you list the identity? I have Clickbank accounts with sales numbers too but that doesn't mean that if I sell you a website that it's actually correlated. You say it's easily documented but how can I verify your documentation, as a buyer, if you won't even share what website it is?

    Finally, people aren't just going to accept that 'oh and I want to spend my time doing other things' as an answer. You said yourself that this site is nearly 100% profit margins but you're clearly being dishonest, perhaps not intentionally but how many hours do you spend working on the site? That is investment. If it's few hours than again - why would you have to sell it to focus on other things? You're really so busy that a self-sustained website that does 85k+ a year isn't worth your time?

    Someone with the money to purchase a site probably isn't going to assume that your website is going to continue making money if you aren't willing to make that money. Could you not hire an employee for $2,000/month to do all the work for you? These are the questions that your buyers are going to have.
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    • Profile picture of the author GamerZag
      Originally Posted by ColdWritingLLC View Post

      Now, to the real issues at hand - why won't you list the identity? I have Clickbank accounts with sales numbers too but that doesn't mean that if I sell you a website that it's actually correlated. You say it's easily documented but how can I verify your documentation, as a buyer, if you won't even share what website it is?
      I haven't listed the website to the public just because I prefer to keep the name private. That being said, I am willing to discuss things via a PM.

      As far as correlating sales with a website, I'm not sure I follow what you are saying since it is easy to verify by simply matching the website domain and copyrighted software product with the Clickbank account which is years old. The Clickbank account deposits are easily verified by matching bank account deposits. Also, I have had a dedicated Clickbank account rep, on and off, the past couple years, which could likely verify the account via a phone call.

      When it comes to legitimate business, due diligence verification is pretty easy to do. This product of mine is legitimate and has all the financials, Clickbank history, bank history, ownership history, sales records, etc., to validate everything.

      So if a solid, interested buyer wanted to purchase my website pending due diligence verification, I'm confident everything would go smooth.

      Originally Posted by ColdWritingLLC View Post

      Finally, people aren't just going to accept that 'oh and I want to spend my time doing other things' as an answer. You said yourself that this site is nearly 100% profit margins but you're clearly being dishonest, perhaps not intentionally but how many hours do you spend working on the site? That is investment. If it's few hours than again - why would you have to sell it to focus on other things? You're really so busy that a self-sustained website that does 85k+ a year isn't worth your time?
      By selling this website, I accomplish 2 goals:

      #1 I free up my focus to devote it entirely to a new project, and

      #2, I raise capital to put into a new project of mine.

      Those 2 reasons are very understandable and anybody in business, especially as an entrepreneur, can appreciate the importance of those 2 things.
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  • Profile picture of the author Adie
    There is a lot of questions surrounding your selling of this site. But based on your details, you can expect at least $120K. never sell the site lower than $110K. Even this amount there are still a lot of interested buyers in Flippa if you can provide all the needed data. I understand that you want to hide your identity but you must provide all necessary website data for the interested buyers. I knew a known IM forum before that sold $200K+ through Flippa and the buyer and seller (based on leaked information) met in Japan to finalize the transaction and to process the payment personally.

    Possible questions:
    1.Why are you selling the site when you can hire someone to run it and even pay half of its earnings?
    2. Why don't you show identity? Are you hiding something considering that the amount involved is not a joke?
    3. Why it needed to be fast?

    Originally Posted by Content Commando View Post

    Your site sounds like a gold mine. If you don't mind, may I ask why you're selling it?
    Good question. In our local classified ads website, there is always an option to answer for RFS. The ads that have reason for selling always sold faster.
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    • Profile picture of the author GamerZag
      Originally Posted by Adie View Post

      There is a lot of questions surrounding your selling of this site. But based on your details, you can expect at least $120K. never sell the site lower than $110K. Even this amount there are still a lot of interested buyers in Flippa if you can provide all the needed data.
      Firstly, thanks for the response!

      One thing I have a hard time figuring out is how to determine the selling price. What do you use to determine this?

      I definitely can provide all the needed data. I'm not 100% sure what data is needed, but I can imagine it would be: Clickbank verified sales information, Domain ownership, Proof of software ownership (ie source code), Deposit records, Customer sales records, Identity verification of myself (ie, Drivers license), Google Analytics. Anything else you can think of? I am thinking that I should prepare all of these things in advance prior to listing the site for sale.

      Originally Posted by Adie View Post

      I understand that you want to hide your identity but you must provide all necessary website data for the interested buyers. I knew a known IM forum before that sold $200K+ through Flippa and the buyer and seller (based on leaked information) met in Japan to finalize the transaction and to process the payment personally.
      I'm perfectly fine with revealing my identity privately, and I'm also fine with revealing it publicly right when I'm ready to sell it, which hopefully will be very soon. I didn't reveal it here yet because I've read some pros/cons of revealing things on the WF and just wanted to make sure I did the right thing.



      Originally Posted by Adie View Post

      Possible questions:
      1.Why are you selling the site when you can hire someone to run it and even pay half of its earnings?
      2. Why don't you show identity? Are you hiding something considering that the amount involved is not a joke?
      3. Why it needed to be fast?
      Good questions! Here are some answers:

      #1 I am selling it for two reasons: 1) The capital used will be put into a new software of mine. 2) To allow me to focus exclusively on the new software I am building.

      #2 I don't mind showing my identity. I just reserved doing it now because I'm not sure what is the best route to go. I read a lot of things online/WF and I heard some people caution against revealing your identity right away. I'm not sure if its appropriate to reveal the website name initially or not. I'm not hiding anything, I just don't know what is the best route to go to maximize potential for sale and highest asking price. That being said, my goal is to sell this website. Whatever helps me accomplish that goal is AOK by me.


      #3 The reason why it is needed fast is both a objective one, as well as an emotional one. Objectively, the cash is needed immediately to re-invest into a new software startup I have created. Emotionally, this website I am selling is something I poured my heart and soul into when I first created it years ago. Even though it is at the point where it requires little maintenance/involvement, it still took a lot of thinking for me to decide to part ways. It is sort of like having a friend that you have decided to part ways with. Rather than drag it out, a clean break is best.
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  • Profile picture of the author Adie
    I appreciate your detailed answer. Although this is not perfect, this is the best way I can offer to you. Every time I plan to sell a site in flippa, I consider re-reading these articles and use the evaluator. here are the links.
    These articles are old but these are from the people who actually created Flippa.

    Here's how to estimate the value of your site.

    1. The Ultimate Web Site Valuation Guide

    2. What's Your Web Site Worth?

    4 . Tool: Website Valuations and Appraisals, Value a Blog, Domain or other online Business

    Hope these helps.
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    • Profile picture of the author GamerZag
      Originally Posted by Adie View Post

      Here's how to estimate the value of your site.

      1. The Ultimate Web Site Valuation Guide
      Thanks for the response!

      I just read through that entire article in your #1 link and it was a great read. The part I was really looking for was the sale price multiple of monthly earnings. It listed a ton of them, however, it didn't list a website which does software sales other than say it could be up to 200x monthly earnings, which I believe to be far too high. I think a 24x multiple though might be on the lower end. That being said, I am having difficulty grasping the reasoning behind the monthly multiple in the first place, though that concept and it's understanding may be less important.

      I guess that is the primary question I have right now. For a website which sells software, is there a report or metric on average monthly earning multiples for prior sales?

      PS: Your #3 link is defunct
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  • Profile picture of the author Adie
    Oh I see, I just removed the link. For the site selling software, I never find a specific analysis and computation for that yet. I will let you know if I find something. The articles are general only to "earnings" and I think it applies to "all" types of earning sources.
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  • Profile picture of the author Mr Bill
    If everything could be verified, the facts are all you need for your sales pitch. You site sounds solid. My personal concern would be that the software might become suddenly redundant (as opposed to selling motorcycle helmets online) so you might want to address that.

    Sites have traditionally sold on Flippa for 8-12 times their monthly earnings. The stronger the site the higher the multiple (obviously) with some really good ones fetching 24x on occasion (from what I've seen) but the 200x sounds more like the price for a strong traditional business being at nearly 2x EBITDA. Websites carry much more risk than a traditional business which is why you can pick them up at such low multiples. Your eventual sale price will reflect those risks when compared to more traditional business investments. If your website was a real estate with that sort of rent coming in per month it would be worth millions.

    I'm inclined to agree with Adie, $120k would on the high end at Flippa but if I had the money and I was satisfied with my due diligence I'd be very interested (if you could address the software redundancy issue) based on your original sales pitch in your original post.

    Good luck with the sale. It would be great if you could come back and report the eventual sale price. Given that no one knows neither who you are nor what site you're talking about there should be no confidentiality issues and it would be very useful information.
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    • Profile picture of the author GamerZag
      Originally Posted by Mr Bill View Post

      You site sounds solid. My personal concern would be that the software might become suddenly redundant (as opposed to selling motorcycle helmets online) so you might want to address that.

      I'm inclined to agree with Adie, $120k would on the high end at Flippa but if I had the money and I was satisfied with my due diligence I'd be very interested (if you could address the software redundancy issue)
      That is the easiest question to answer PC Gaming is one of the largest entertainment markets in the world, with an estimated 100 to 300 million users (recent Blog by Intel).

      My software cators towards MMORPG gamers, which is a very large market in the tens of millions of users paying active fees per month. This market definitely isn't going anywhere.

      As long as PC Gaming and MMORPG games exist, my software will have a niche of customers. Considering how vast the user base is, it isn't going anywhere.

      This is one of the strong positives with my software/website for a potential buyer. I have put very little time/effort into the marketing/promotion of my product. If a potential buyer put some effort in here, especially if the potential buyer had an existing content source, the extra value for them could be substantial.
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      • Profile picture of the author Mr Bill
        Originally Posted by GamerZag View Post

        That is the easiest question to answer PC Gaming is one of the largest entertainment markets in the world, with an estimated 100 to 300 million users (recent Blog by Intel).

        My software cators towards MMORPG gamers, which is a very large market in the tens of millions of users paying active fees per month. This market definitely isn't going anywhere.

        As long as PC Gaming and MMORPG games exist, my software will have a niche of customers. Considering how vast the user base is, it isn't going anywhere.
        Ok, that explains (quite well) the market but you might have to address the question in your sales copy. It's not about the size and future of the marketplace or if people love to play games or not (I do), the question is about your particular software.

        • Is it stand alone software?
        • Is it browser based?
        • Is it OS dependent?
        • Will it ever need updating?
        • Does it have a "shelf life" in it's current version?
        • Who would build future updates? (not you obviously but who?)
        • What are the foreseeable future risks?
        Before you answer, please keep in mind that these are the types of questions I would have IF I was a buyer (which I'm not). You don't have to answer these are the types of questions in this thread but they are what would go through my mind. If the product and it's future are sound then you'd want to make sure you expand on those risk factors. The more info the better.
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