Going, Going, Gone! – First Niche Site Sold
I’m happy to announce that my first site for sale went on Flippa yesterday. It sold for $102. This is less than I expected, as I was hoping for about 10 to 20 times monthly income for the site ($18/month times 10 or 20 is $180 or $360). It’s okay, though. It went to a nice buyer who I think will really benefit from the sale since he can easily make the expense back in a few months without any work. It’s also good for me as I will be able to build my reputation as an honest seller of quality websites on Flippa. A win/win situation.
What kind of profit did I see on this sale?
The website cost me $29 to make. I paid $19 to Flippa to list the site and then $10 for the success fee. From the site’s initial completion to sale it made $40.60 in Adsense. Therefore I made $102+$40.60-$29-$10=$103.06. Not too bad. Now I need a lot more sales.
Why did this site sell for only 5 times monthly income?
I have a few theories on this:
1. I’m a new seller on Flippa and no one really knows who I am on there. I don’t have anyone vouching for me as a seller and without this social proof I think it’s very difficult to get a high price.
2. It was a fairly new site. It only had two months of income proof, and the first month’s income was quite low. I think next time I sell a site I need to show at least two months of STABLE income. No one wants to buy a site and then see the income drop off.
3. It was a low-earner. For my next sale I will put together a package making more than $100/month. I think this will get more attention and draw in more bidders. Plus, with a $100/month earner I’ll be able to justify paying $50 to Flippa to get it on the Featured Sites page.
4. April was a bitch of a month for SEO. After the Panda and Penguin updates people are running scared. There’s a lot of talk about the end of niche sites and people’s adsense accounts getting closed. I think we need a month to settle down and get back to work. Niche sites are still going strong, but the game has changed a little bit. We need to change with it.
Why do you think it only went for 5 times monthly income? I’d like to hear your comments and advice in the comments below. Thanks!