Why ?

[britishbulldog]

Why is it people who buy traffic sites generating income only want to pay 12-18 months revenue,i would love to pay 60k for a site generating 5k a month,i could sit at home pay my 300k mortgage,buy a nice car,go on holiday and never do a strokes work for the rest of my life.

Oh buy the way i wish i could buy an ounce of pure gold for $10 as well !

It racks me off when people take the P*** offering such a small amount,and when you ask them for a similar site its suddenly 3-5 x revenue which to be honest thats how it should be.

So folks if anybody wants to let me retire just sell me your site for 12 months revenue so i can take the p*** LOL.

Im just jokin but its true !

 

[JMJ]

I gave someone "here" the opportunity to buy a site about a year or so ago at around 18 months revenue. It did make around $4500 a month from fixed advertisers and it could have easily made more. I guess that person was happy buying domains for 8x revenue because he didn't seem to think that was a good enough deal..

If I had the cash I would have jumped all over it..

 

[Edwin]

Low hanging fruit, I guess. There are enough people on here (the logic would go) that some may get desperate and sell CHEAP. Get enough of such deals and you're sitting pretty...

 

[LazyD]

Sadly,I never have the right amount of cash sitting around when I come across these deals.:-(

 

[Focus]

Some revenue domains have TM issues and other potential changes ahead of them and you just never know sometimes...PPC rates don't stay the same forever and there are few industries where you can honestly map out what a domain is going to generate as far as income, sure you can guess and hope..but one day people might just start clicking less or the next big product or service may shadow out your site/domains hits and popularity...there is an old saying "a bird in the hand is worth more than two in the bush" You just have to find that fair middleground for you and the buyer when selling...and then everyone is happy..and you fast forward 18-24 months in your bank account! WITHOUT concerns of future changes.

Chris


Ps- it never hurts to "build" revenue sites and then sell them, done effectively you can buy good light traffic domains cheaply...do some SEO work and get even more good solid honest visitors and revenue going, then sell for 5-10 times what you paid based on future "projected" earnings...if done a few times or more a year you can be "sitting pretty" over and over and over and over again! k:

 

[JuniperPark]

A whole LOT can go wrong in 1/2/3 years.... some of your inbound links may be deleted, search engines change ranking or just drop you, Ad rates can drop, recession, high inflation, a terrorist strike. It's a high risk gamble, not "guaranteed income", and that's assuming that the revenue rates were honest in the first place.

 

[GT Web]

A whole LOT can go wrong in 1/2/3 years.... some of your inbound links may be deleted, search engines change ranking or just drop you, Ad rates can drop, recession, high inflation, a terrorist strike. It's a high risk gamble, not "guaranteed income", and that's assuming that the revenue rates were honest in the first place.

Exactly. Remember, when investing in anything, usually the higher the risk, the higher the reward. Buying websites is usually very risky (due to the reasons Juniper mentioned above) and so therefore one should expect a better potential ROI than from a "safer" investment.

 

[labrocca]

The market has created the 12x rule. Of course it can be lower or more...depending on the site. But as stated ....lots can change on the web in 12 months. Things can change even faster than that. Also note that you pay 12x revenue...so you have to wait over a year to regain your investment.

As a buyer I see 8-10x monthly revenue as a good deal and what I shoot for. As a seller I shoot for 12-16x monthly.

Mocus is right about the selling of developed sites. It's how I make most of my money. A site making $100 a month is easy to create and sell for $1k but creating, managing, and promoting 20 or even 50 of these sites can be a hassle. I prefer to develop it up and sell for the revenue. I have at least 300 projects I am developing and at any time I can bank them with a sale. If I need 10k I can earn it in 30 days no problem. However trying to make 10k from scratch without developing and selling(i.e parking and adsense the domains instead) makes 10k almost impossible.

Your post is about traffic domains but really those can easily falter. I have no faith in the long term income of parking. ANYTHING can happen with them. Of course top tier generic domains have better value but those are a different breed imho.

 

[JMJ]

The way I see it is buying a website is a much better investment than a domain based on PPC revenue. Spending 2-8 years on just a domain based on PPC revenue is what I call very risky. Especially with the SE bots as smart as they are these days. I'm not talking high quality pure type-in names. Type-in traffic is always going to be there and those names get the prices they do based on name value not revenue. With a site you atleast have something tangible although intangible.

 

[britishbulldog]

Thanks guys who responded brilliant feedback ! I understand now,i was basing my assuptions on generic income sites but now i know these generally fetch far higher prices than say "ifelloutofthecarboot.com" which would be a far riskier investment and would only command say 8-12 months revenue !

Once again thanks guys !

 

[Steen]

Somewhat of the same reason that interests rates would be lower if no one ever defaulted/declared bankruptcy.

 

[JMJ]

Somewhat of the same reason that interests rates would be lower if no one ever defaulted/declared bankruptcy.

Credit card rates mabey but the credit card companies can only blame themselves for that. I was a mortgage broker for about 5 years and you wouldn't believe some of the things that people do to themselves with credit cards. But the keyword here is "credit." The credit card companies not only allow those people to over extend themselves but encourage it.

I had a client who's husband and wifes combined income was 92k a year. Just one of their many credit cards was $56,000. Over half of their combined income in one year. Their DTI (debt to income ratio) was 100+%. As in their monthly bills exceeded their income and they were using credit cards to pay other credit card bills, to eat, to pay the electricity bill, etc. They should have never been allowed that much credit especially on one credit card.

Now you can blame them. Or you can take into consideration that if the credit card companies actually practiced some sort of responsible lending then this sort of thing wouldn't happen.

 

[Edwin]

I have paid much higher than 12 months - in fact sometimes I've paid thousands for sites with no revenue at all - but that's because I went and found them proactively i.e. I specifically tracked down and approached sites that I knew I could monetise much better than they were being monetised at that point (e.g. no Adsense ads on them, no affiliate ads in the niche that I know already works etc.)

The risk is much higher if you ask for people to send in their site-for-sale suggestions, because you're trying to pick the best of a limited number of sites, rather than the best of all the billions of sites out there...

If you're a buyer, your best bet is to think of a niche you're familiar with, then choose some of the main keyphrases addressing that niche, and take a look at the top 10-30 sites that come up in searches for those keyphrases. Chances are you'll spot at least one "undermonetised" candidate... Look for stuff like the copyright date - if it says "2001" for example then you know the site has been gathering dust for years...

 

[britishbulldog]

Nice advice edwin thanks ! oh im not a millionaire like you yet ! LOL

 

[Biggie]

remember one thing

$60k today, is worth more now........ than it will be next year!

 

[Focus]

Word up big money

Cash in hand is a happy man... & it's even better when you created it from nothing to begin with.

Chris