Sold recently for an 8x annual multiple, this business had nearly 6,000 views on Flippa, 196 watchers, 50 discussion threads, and 28 bidders. It all came from a “no reserve” auction that started at just $1! And to add one more fantastic fact…the seller had only owned the 6 year old website for 6 months!
This is a story of steady business, time, and optimization as much as it is a story of anything else.
For the latter situation, the website itself will drive traffic by creating brilliant content that attracts hundreds of thousands of users and then directs them to these affiliate sales by promoting the products in their posts. This is what today’s success story is all about. Driving sales through Amazon by getting people to come to a website for reviews and information on home networking and home computing products.
But don’t forget already, this is a story about steady business! This is the story about a site that had over 6 years of history and was averaging over 44,000 page views each month, with nearly perfect consistency.
The interesting aspect of the way that this site was built and ultimately sold on Flippa is that it was actually acquired just a few months before the sale from another owner who didn’t know how to build things all the way to full potential. In fact, this was the fourth time that the site had been sold!
Back in 2015 it was sold on Flippa for just $3,000.
Then, in 2016 it was sold again on Flippa for $15,000.
This time around, it sold on Flippa for $25,600!
That entire time, numbers remained consistent. Page views were always strong and if anything, growing in those earlier days. The difference each time was new owners optimizing the way that the website brought that traffic in and the way that they were optimized to make money.
The silent killer in the success of this sale? Age.
Why does a site generating $268 a month in profit ($3,216 / year) sell for $25,600? Age and opportunity. Each time that the site sold, it had more credibility with users and with search engines. Those blog posts from years ago were now ranking on the first page of Google for a number of key words. A few quick edits to the backend, like upgrading to WordPress from a custom CMS, and the value was thrust into the sky.
The other key to this sale going so well was how much information was provided by the seller. Take a look at the screen shots below of all of the links to detailed information that was included. There were links to the prior listings, links to revenue, links to traffic. The seller had nothing to hide and laid it all out there for the Flippa community to see.
There is really no wonder why this business sold. It had all of the relevant success attached to it (profit, views, age, content) and beyond that, it was ripe with information, providing both details and trust.
The real question here is, when will the new owner sell this site again and what will they get for it?