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Sites on flippa goes for x18 of the monthly profits?



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Sites on flippa goes for x18 of the monthly profits?

I've never used Flippa myself and I have slim to none knowledge and experience which is why I reach out to you..

I stumbled across a quite interesting discussion yesterday where one guy claimed that most sites on flippa sells for 18 times the monthly income. - In that discussion there was literally 20-30 people who was angry and upset about this, and most of them agreed that this was in fact true.

What I started to think was this..
If a website earns $100 per month, they will sell it for $1800 according to the discussion. - But why would anyone get angry and upset about that?

Seriously, if I can buy a website that will make me $100 per month, each month, then I'll buy it for $1800 right now. The next thing I would do, is to wait 18 months and buy another site. And then another.. And another.. After 2 years I'd get $200 per month from 2 different websites and sure, I bought them for a total of $3600.. But these sites will bring me $200 each month.. So why not? - I can't see the reason why people get angry and I can definitely not see why people don't buy websites on a daily basis if it's that easy to make money.

So, for any of you with experience.. - Is it that easy and is this true?

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overcast

Keeping calculations aside. What matters the most is the ability of the website to perform better. Some sites can perform and some sites just can't. It all depends on how you're being sold. Some sites quit and sell when they don't see monetizing potential. So that's another thing to watch out there.



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MidlifeFitness

This cannot be stated enough. Always ask yourself WHY the site is being sold. If it was truly a winner and it's up for sale, that usually tells me a couple things:

1) The owner doesn't believe it will last and wants to cash out and leave you holding the bag or;
2) There may have been some shady business practices happening to get the site where it's at and again, the owner wants to cash out and leave you holding the bag.

Now, that isn't always the case, but with anything, make sure you do your due diligence and research so you're not just setting fire to your money.



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overcast

Exactly. Most of the flippa sites that I have found out are just some random content slapped. They use adsense on it with MNS niche. And then try to monetize as much as they can. In some cases this does work out though. I can't say it would work in all the cases. People who wish to sell such sites like to keep the profit on top. They have to also consider the value they are bringing.



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vinaya

I have been using flippa for a long time, however, I have not made a single sale. I have put domains and websites for sale but without any luck. I have spent more than $300 to list my domains and websites, if I don't make any sales, there will be a major loss for me. If I am able to sell domains or websites, I may recover my investment in promotion.



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idealmike

Great discussion Andre! And one I'm sure that many webmasters or bloggers would like to know. Especially those that would like to sell their websites! I've been buying and selling websites for 14+ years and have some Flippa trading experience. So I'd like to try and answer your question by restating and modifying your opening title/question a little. Sites on flippa goes for x18 of the monthly profits?

Sites on Flippa can go for x18 of the monthly profits if and only if, the site has been trading and earning revenue for 18+ months or more. Although some sites that have been operating and trading for less than that, can sometimes sell for that much. That's because some sites have a lot of appeal to them. Or the domain is in a hot industry right now. Think PokemonGo domains at the time PokemonGo took off. And if the Flippa description does a good job of "pitching" that site. Even if the site has only been earning for 1 month so far.

However, in all my time in buying/selling domains and websites. The general consensus on how to value the domain/site from the start, has always been 6 months revenue worth. So if the site had been earning $100 a month consistently for 6 months, then the site would be worth $600. However, some sites are older than that and have/are earning more than that for a longer time. Say a site that's been up for 1 year, but has only been earning $100 a month for 6 months. Then the average value of that site would be around 6 months worth of revenue still at $600. However for older sites, for sites that have been operating / trading / earning for longer than that, say for 2 years or more (more than 18 months) then it is fair to value that site and ask for $18 months worth of revenue for it. So say $1800.

In fact, the older the site, the more money it's made, the more you can ask for it. Let's say you had a site that was 5 years old and was earning $100 per month consistently for around 4.5 years. Then you could ask for up to 24 months revenue, or more for it. This is simply because sites that have been earning money for the longest, have the highest sustainability. Where as sites that have only been earning for a short period of time don't come with the same guarantee of sustainability. Basically, there isn't much to tell if it will continue earning for the same amount of time again and more so that you can earn your money back and more.

That was and is the rule of thumb I go by when valuing and selling and buying websites with and has done me well to this day. But to be honest and straight talking, you can value a domain/site at any value you want. Hell, you could list it up for $250k or even $1kk if you wanted! And by doing so would add some value to it in the eyes of people too (well some people). But you have to do your research when buying and investing in domains / websites to make sure the claimed earnings are legit and that they are sustainable!

So yeah, it's true, it happens. But people like to buy for as cheap as they can regardless! Sites on flippa goes for x18 of the monthly profits?



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anwebservices

Yeah Mike you are so right. I was active on Flippa for some time, few years ago. Your explanation is so right.

But "hitmeasap" you also have to know that this is an auction site, so some really valuable websites with nice proof of income sells sometime much higher because too many interested people to buy...

Sometime it's hard to understand or predict sales on Flippa! Also if you going to buy anything, make sure to check their income proof very carefully, also talk to seller and make sure they guaranty further income. Sometime it happens that they give you real proof of income, but soon as you buy, they get your customers back to their new website, you loose.

Since you said you don't have much experience with Flippa, study it bit more before you decide to spend some serious money there!!!

Good luck ;)



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Cristian

I sold about 5 websites in my day and all of them were sold about x10 monthly profit. At least this was the case back then when I sold my websites. Anything beyond x10 was way too much for anyone and no potential seller would agree on something like this, believe me, I've tried.

So don't know where this x18 rule comes from but I always thought Flippa had always had way to big off prices compared with other marketplaces or forum marketplaces where selling websites and domains are available.



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Lynne

Oh what an interesting discussion. I have been really interested in learning more about website flipping but I was thinking about creating websites with the intention of selling them later on. In this regard I can't see me selling a website if all I can make from selling it is 18 months worth of revenue, then it would be wiser to just keep the website myself right?

Although I suppose I need to look at how much the website is making and how much effort, time and expense it takes to maintain that website. This would obviously be a huge factor too.



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Seotraffics1st

This is a very nice article. Thanks for sharing.



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MariaC

It is not as easy as it sounds on paper. You have to put in a lot of work, writing quality contents and creating backlinks to attract users to your site. And then you have to get a niche with a nice user stats. Else, you'll put your money in a pit that can't be taken out. People do it and it is doable, but do your homework first before putting in your hard earned cash.



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overcast

This is true. Most of the time we look at how successful other people are selling things. And we don't pay attention to the things that we are doing. So on that scale. We can say we too can sell such type of websites. But it requires alot more time and the efforts. And on that cases it'd be reasonable to have the monthly profit. That's what I have learned from the flippa sales these days.



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zeedollar

When considering the worth of a website, it income potential matter ther most unless you are just trying to buy off a competition, a lot of these tech giants buy off websites and interlectual properties based on its potential by more than x30 its value and not based on what it is making currently x number of months, which i think its a vague way of valuing a website.

Some website might be making $100 today, but the next six months might make nothing or could be making $100 today and spike to over $200 for some trend movement or something else.



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Soulwatcher

The thing I ask myself about websites on flippa, is if a website truly is earning $100 a month for 2+ years. Why on earth would you want to sell it for $1800 and have nothing in return. I can tell you from past experiences it's not easy to get a website to earn $100 a month. It's not like that person can snap their fingers and have a new website making $100 a month in 3 months. There is always a reason why someone wants to unload a website and its usually not good.



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WinnersPBN

There are people who want/need instant money at times and that's the reason why they sell those $100 per month money fetching websites for $1800 and then there are those who are sort of pessimists and sometimes even lack vision, these are the ones who would sell the same website for $1200.



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jaymish2

I disagree @ winners PBN I think it is the other way round, those need that need the money instantly that sell their site for$1200. If you could get a site that makes money that is fantastic, the problem would be would you be able to continue this momentum on the site. For the site to continue to make this money and to make even more income you would need skill. I think that this is the main problem for everyone.



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Puremelda

 
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