Flippa Pricing Question

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Fastb

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Oct 7, 2009
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I'm thinking of listing a couple of sites on Flippa that each have ongoing monthly revenues of around $500.00. I cannot seem to find rhyme nor reason in the pricing of the sites that are in the "recently sold" section.

I don't want to sell any of my websites right now, but am looking at maybe selling them in late spring or early summer of 2012, either as a bundle or individually.

The most common multiple is 5X monthly earnings, so a site making $500/month appears to frequently sell for around $2,500 however some seem to sell for as much as 22X monthly earnings, so that same site may sell for $10,000 or more.

I cannot see the point in selling a website that earns $500/month for $2,500, but $10,000 would of course be a real temptation. Why would anyone take a $2,500 payoff unless there was a high probability of the website loosing its revenue stream?

I know there are a lot of variables, such as: age of website, number of inbound links, Google PR, method of revenue generation etc. yet after significant analysis I cannot get a handle on what sites should sell for.

Would purchasing additional inbound/ high PR links improve the value of the site enough to cover the cost of the improvements? Or is it pretty much all tied to revenues, revenues, revenues?

Anyone out there have some experience with Flippa that would be willing to share their formula for pricing sites?
 


I've been buying and selling on Flippa a lot lately.

Most sites seem to run at x10 the monthly revenue

The more 'risk' seen by buyers the lower the price. The more 'upside' seen by buyers the higher the price goes.

If your sites are legit just be 100% open and honest and provide documentation and I'd think you'd get about $5k a site.

YMMV
 
Thanks Hav3n,

My sites are very unique niche sites and that could be looked at either way - high risk because they are unusual or perhaps low risk because of lack of competition. I guess it's all in the presentation.

Are you utilizing your social networking packages to build up site value and then resell? Does the sale price go up enough based on the number of links to achieve a decent return on the expense?
 
Effort required to make monthly revenue.

Broad appeal of topic or narrow. A finance site would have more interested buyers than a site about scarves for gay webmasters.
 
Yeah, I agree that sites going for 5x monthly revenue are probably shit. I've had the most luck with Adsense sites; they seem to sell for the most.

If you haven't sold sites on Flippa before, I'd recommend you sell a few low earners (sites that pretty much failed) to get some sort of a track record on there, for your future listings. You probably won't make much of a profit on those listings, but it will help you make a bigger profit when selling your sites that are earning $500+ a month.
 
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