Domain flipper experts... advice needed!

9 replies
Do we have any domain flipper experts in here that can give me some advice?

What would a site that brings in around $3000 per month, hands off residual income be worth on the market?

The income comes from hosting fees and very minimal website updates. Maximum 3 hours work per month.

By the way, this is not a hidden sales promotion, I'm genuinely interested in finding out, that's all, so no offers accepted.
#advice #domain #experts #flipper #needed
  • Profile picture of the author jideofor
    Then you are not dealing with a domain but a website. go to flippa.com and click on "just sold" to get an idea
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  • Profile picture of the author inofshar
    $3000 per month!!!!
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  • Profile picture of the author Rus Sells
    From what I've read about this subject is that a domain's appraisal is usually 10X times it's monthly income. So around 30k I'm guessing.
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  • Profile picture of the author SashaLee
    Hi there,

    Rus is on the right track. One of our clients sold his site for the annual revenue - so 12 x montly revenue. The key is whether your site can truly maintain the revenue without your involvement. There are rarely any truly "hands off" situations.

    All the best,

    Sasha.
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  • Profile picture of the author Joe Stewart
    I've sold several websites both on and off of Flippa.com and I'd also say that Rus is on the right track, but there are always several factors to take into consideration. I'm not going into all of them here because you can read a lot of them at Flippa's site.

    One thing I will say is to include your "brand" as a selling point. I've done this several times as leverage and received a higher price because of it.

    Example, if your domain name is "ArticleWritingPros.com" (I just made that up) then that's your brand. If you've established your brand by promoting it on several places like Facebook, Twitter, article syndication, YouTube.com, have a list, etc and you have an interactive group of posters to a blog, then you should be able to get a much higher price.

    Even if you haven't done mass promotion like I mentioned above, if the domain is very old then you can use that as brand leverage as well.

    Example, in your description you can write "ArticleWritingPros.com was established in 2005 and has experienced steady growth each year. It began as a hobby site that I only worked on part-time, but it now has a consistent monthly income of $3,000.00."

    Make sure you have proof of traffic and income. You can't make any substantial claims for either one without them.

    Also include a legitimate reason why you're selling. You need to be careful with this. Don't imply that you need money! If you do that bidders will try to take advantage of you. The most common reason(s) that people sell are that the site isn't earning as well as it used to OR they have too many projects going at once and need to downsize their workload so they can put more focus into more profitable assets. I use the latter reason. :-)

    When you write your title and description do it just like you'd write a sales letter. Write a benefit filled headline with scarcity, use sub-heads throughout the description (I use color) that are also benefit laden, offer bonuses for the buyer and offer at least one SWEET bonus for anyone that will give you your "Buy it Now" price. Make sure you don't offer bonuses that are going to cost you too much time or money and make them as relevant to the site as possible.

    You should also visit Flippa's auctions and look for sites in your niche that were recently sold. Keep an eye out for sites that got a good price that were similar to your own. This could give you leverage when negotiating. On the other hand, an experienced buyer could also use that against you. If they try that then go back to using your brand as leverage.

    Anyway, I could (and may) write a product on this, so I can't give away too much, but that should get you headed in the right direction.

    HTH

    Joe
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  • Profile picture of the author trustedmarketer
    More and more folks are looking at consistent monthly income from sites so if you can prove that you've consistently been making $3000 per month over a period of time, can provide the traffic stats and other useful info, then I would agree with Rus above at possibly upto $30,000
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  • Profile picture of the author sbucciarel
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    You aren't flipping a domain. You're selling a website. You could sell it on Flippa. You will need to verify traffic and income. Also, price will depend on how long it's been making money. People trust less a site that has only had revenue for a few months over one that has a year or more. The price for one with a longer income history will be higher than one with less.

    People quote that 12x monthly income all the time. Many on Flippa do not get that. I've seen more like 6-8x monthly income on Flippa, but check for yourself. Go to Flippa and click on Just Sold and look for sites with similar attributes as yours and see what they go for.
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    • So helpful, thank you. I'm much the wiser now than I was before.

      I kow it sounds unbelievable, but the site is really almost hands off. My customer sistes are all brochure type sites and the kind of customers who just wnat a simple presence online... forget upselling them on additional services, they just want a simple website.

      Amongst them are a few "ambitious ones" who ask for the occasional update in price lists, or to add a seasonal message. A few have bought extra monthly services but most are just happy with what they have.

      The real reason why I'm asking about the value of the sites is, it no longer fulfills my personal goals. Maybe I'll pass it on to a family member, or keep it for my 7 year old niece as a nice little nest egg for when she's ready for college.

      Thanks again everyone for your feedback. Joe, you should write that book, turn it into an Amazon bestseller and ride the crest of the wave as the title of Amazon Best selling author blows and fills your sails.
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      • Profile picture of the author Joe Stewart
        Originally Posted by Stewart Alexander View Post

        Joe, you should write that book, turn it into an Amazon bestseller and ride the crest of the wave as the title of Amazon Best selling author blows and fills your sails.
        Thank you, Stewart. That's definitely on the agenda, but I have two others ahead of it right now. I'll get there eventually. :-)

        Just for future reference, Suzanne, (sbucciarel) also has extensive experience with Flippa.com and is definitely someone who's posts you can trust regarding selling sites. Actually, she even has a published article on their site, which is quite impressive.

        Just sayin'.

        Joe
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