October 8, 2007

Real Examples on Buying And Selling Web Sites

If you've been keeping up with this series on buying and selling web sites, you've seen what a great opportunity there is and how much fun it can be!

It's like a complete underground business model! But that means there is time for people who get in early to take maximum advantage. Just like with anything else on the internet, it's easier to do in the early days than it is when "everyone" knows about it.

Just like getting a web site to rank well even just a few years ago. It used to be a piece of cake. Today, it can still be done, but you really have to know what you are doing. I think buying and selling web sites is in the same place right now.

So are "real" people doing this? Or is it just people who have been doing this for a long time who can make it work?

That's the question Ed answers in today's message, which I've included below.

Enjoy!

-Roger


 Subject: The only thing that matters…Proof

Hi!

We are under twenty four hours away from launching
Dominiche inside StomperNet.

I have made over Nine Million Dollars PROFIT (not turnover -
we have all learnt that difference now!!) buying and selling
websites.

BIG DEAL!

That's great for me (That money into a government guaranteed
T-Bill generates $33,825 a month - you can't live on that  - but
it's a start!)

What matters is "can YOU do this?"

Listen to this Interview with Dan Raine and hear how he sold
his sites for three million US Dollars and how he bought a
Facebook Application that is delivering him 1000 new members
a day in his Facebook niche - for just $1500 bucks!

Listen to Dan's Story Here

Hear how he bought a site for $400 that is now making him
$80,000 a year

Listen to Dan's Story Here

This stuff is happening all the time - take Sean for example…

Sean - Like you has been following along this email series -
decided to jump ahead a little - here is what he sent me a
couple of days ago…

———

Ed,

Planning to join the program when it drops. Trouble is, I wish
I could get my 30 minutes' brain-picking ahead of time - as in
right now!  

Here's my issue: I just found a very interesting property I'm
thinking of picking up.  It gets a ton of traffic - 3000 uniques a
day (I checked it out on alexa and a couple of other places
and it checks out.  Alexa rank is 80k!) He claims revenue of
400/mo in revenue, mostly from adsense.  That's revenue, not
profit - the site is media-heavy with about 2tb of bandwidth a
month, so expenses will be an issue. But geez, 400 a month
off of 90,000 uniques?

Adsense revenues are low because pretty much no one is
bidding on the relevant keywords.  Seriously, searching for
them shows zero ads on google.  Yet there is a ton of search
volume. His average revenue per adsense click is like $.06

But that gives me an idea: I have some commission junction
products I think I can market to this audience.  I could buy
adwords for his relevant keywords on the cheap, in addition
to his current traffic.

Also, the site design is PISS POOR.  I fancy myself a decent
designer.  Here's an example of my work:
http://www.xxxxxxxxxxxxxxxx.com

In short, I think this is a good flip candidate.

He wants $4k, is already getting interest from buyers, and I
doubt he'll carry payments forward for long, considering that's
only 10x revenue.  But sheesh, $4k for 3k uniques a day.  
Even at $.05 a click, you'd get that back in value in a month!

Still, $4k is a big chunk of my investment capital.  I'm chewing
my fingernails here - I'd really like your advice.

I'm sure you're flooded with emails, but I'm hoping to hear
from you.

——–

Now Sean made a mistake calculating the buy price at $400
dollars a month profit - Thats $4800 dollars a year - The person
was selling that site for LESS THAN ONE TIMES
EARNINGS!!!!!!!!!!

Here is what I sent back to Sean (I was on my beautiful iPhone
so it was a bit brief):

———

Hi Sean

The biggest questions are always:

     Why are you buying it?

     Do the numbers stack up? Has he been inflating numbers
     using bought link strategies?

     What is your specific plan for rehab and making money?

Ed

Sent from my iPhone

——-

I just got this email from Sean…

——-

Thanks for the reply.  I went ahead and bought it.  

I'm buying it because of the huge traffic at a very cheap price.
The traffic numbers do stack up - I verified from multiple
sources.  Revenue I can't know for sure, but he claimed a very
modest amount which is easy to believe ($400/mo).  Even if it
were zero revenue right now, 3000 uniques a day should be
well worth the price.  Even valued at .01 each, that's $30 a
day.  Doesn't take long to recoup $3500 at that rate.  By the
way, the site's alexa rank is 55k!

I have a number of rehab ideas for the site.  The design right
now is HORRIBLE.  Tons of non-monetized external links -
Which is good, really. Means it can only get better.  I have
several CJ products I think I can market to this traffic stream.  
I'll be interested to see if StomperNet gives me any new ideas
in that department.

Looking forward to the course.

Best,
Sean

—–

That is way cool, Sean.

Now, let's look at a transaction that fellow Stomper Arro did
(and check out the beautiful numbers):

——

Ed,
Thank you so much for doing the call tonight - it was awesome
for me and I think very useful for the entire group!

Here are the info/stats/data that we discussed on the call:

===================

Site1: www."sausage_making".com

Google Page Rank: 5

BackLinks (MarketLeap): Total: 921, Google: 66, Yahoo: 855

Pages in Google (site:) 664, 137 in Supplemental Index

DMOZ Listing: Yes

Yahoo Listing: No

Titles: none

H1 Tags: none

Nofollow Tags: None

Monetization: None

Server LiveStats Info: [Monthly = 4.3 X Weekly]

Historic Sessions: Monthly 54,859, Weekly 12,758, Daily 1,823

Historic Hits/Session: 3.7
Historic Time/Session: 72 seconds (slowly declining)

Historic Page Views: Monthly 99,309, Weekly 23,095, Daily 3,300

DomainTools.com: Estimates 9,779 unique US visitors /month
Quantcast: Estimates 16,500 unique per month

Content is mostly articles written by about 30 highly regarded,
published authors and experts in the niche and related
sub-niches. Estimate about 400 books between them on
related topics, thousands of articles.

Estimate 300 pages with a PR of 3 or more.

========================

Based on this initial information, which has been verified via
the log files for the past year, Ed made the following rough
valuation based only on the value of the traffic:

Clicks in this niche for google page 1: Min of $0.16 Based
on above data, conservative estimate of 1,000 uniques per day.

1000 X 0.16 = $160 per day X 365 = $58,400.00 per year,
calculate a 50% risk reduction factor = $29,200.00 per year.

The initial asking price the owner quoted is $6K !! A great deal,
well worth the effort to get all the details and go after now!
AND Ed mentioned that this type of thing is not at all
uncommon!

Ed left me with three specific "Action Items":

1. Post this data here so everyone can follow the progress.
[complete]

2. Have a plan for immediate monetization of the site if the
deal closes

3. Negotiate the deal with as little "up front" money as possible

Again - my sincere thanks to Ed!

I will update here as things progress.

-Arro

——-

HOW MUCH WOULD IT COST YOU TO GET THAT MUCH
CONTENT AND TRAFFIC!!!!!

Now Arro let us know how he went….

Hello Ed and Stompers,

Thanks to Dominiche, I am the proud new owner of three sites:
www.fXXXXXXl.com (the 900 page site mentioned above)
www.fXXXXXXXXg.com (the 650 page site mentioned above)
www.fXXXXXXXg.com (parked domain, seemed like a good trio
and it was available)

Now I am in great need of advice on short-term monetization
ideas, site refurb ideas, and long-term monetization ideas.

I will post in the classifieds for assistance with some of these,
and also move some of the monetization questions to the
Monetizing & Conversion forum area.

(Note From Ed - See all the help Arro has inside Stompernet?
- That's why getting two months of Stompernet Membership
with Dominiche Is So Cool!)

Finally, I said I would share more about the deal once it closed,
here a few notes of interest:

* The seller did agree to a lesser selling price and payment
terms without any major issues. (Thanks Ed!)

* The final payment is contingent on some ongoing fresh
content to be provided. It's not all the content that will be needed
for the sites, but it is a big chunk, and from some highly regarded
authors.

* The agreement also includes language to insure that the
seller assist in "handing off" the relationships (introductions,
references, etc..) with the currently listed authors to help get
current information and perhaps refreshed content.

* The agreement includes language to ensure the seller will
use his experience, recognition, and history in the industry to
aid in building relationships with new writers with strong
industry recognition.

Note: There were zero issues with any of the contract details
because we had spoken on the phone 10+ times before the
contract went to print.

Thanks Very Much!

-Arro

Looking forward to the rest of Dominiche!

——

And so should you - People like you are taking advantage of
the insanely cheap prices of websites to build there nest egg
for cash flow and for flipping.

If you have not had a chance to listen to Dan yet take a few
minutes to hear his story…

Listen to Dan's Story Here

Ed

PS Tomorrow at Noon Eastern time, Dominiche presented by
StomperNet will open. Don't be one of those people who say if
only I had bought that domain name, if only I had bought that
house, I don't want you to have an "If Only" moment when it
comes to buying and Selling Web Sites.

PPS Listen Carefully to the way Dan structured the Sale (and
who he sold the business to) It just shows you how creative
you can be!

Listen to Dan's Story Here

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