Opinions on Rick’s latest batch of web sites for sale.
Rick Latona has posted his five latest web sites for sale, which he says his team hand picked from 1,000s of sites.
I’m a big fan of buying and selling revenue-producing web sites and I’ve done it myself. Latona’s announcement asked for feedback, so here’s mine on the five sites.
EasyToInsureMe.com – this property has approximate annual revenue of $100,000 and an asking price of $170,000. The description states that traffic is up 78% since January, which makes me think this revenue is annualized based on recent months. So the site history is fairly weak. It’s also up to about 1,300 uniques per month. That’s not a lot for a site that makes $100k a year. It’s possible on a well designed lead gen site, though. I’d verify all traffic to this site and make sure it’s organic. Deduct any PPC costs. Think hard about if the site revenue is sustainable. Also think about the trademarked terms that the site ranks for in SEO.
ReviewCar.com – This lead gen and online advertising site claims revenue of $26,400 per year and is asking nearly 5x revenue, a very high price. I can’t get the site to load correctly in FireFox but it does work in Chrome. Revenue is mainly from Adsense with some from SureHits. I’d want to make sure that revenue is steady, especially since it’s concentrated. There’s a stale forum on the site that could be boosted, but forum traffic doesn’t do as well for PPC advertising as other traffic. Be sure to figure out how much time the owner spends on the site and deduct this as a cost from revenues.
HousingPredictor.com – According to the site, HousingPredictor.com has been featured in publications such as New York Times and The Wall Street Journal. As a buyer you’ll want to figure out if it’s the owner’s expertise or the site that is most often quoted. Also see how recent these mentions are. The site makes about $25k top line a year and is asking $125k. It looks like the owner writes a lot of the articles, and this cost must be taken out of your revenue to figure out profit. At a minimum we’re talking a rich 5x earnings, and I expect it’s higher when you consider the true costs.
GolfCartMotors.com – This site makes annual revenue of $5,400 with an asking price of $16,500. The owner sells a product and basically marks it up based on a relationship with a supplier. It’s sort of like drop-ship, but it’s not clear if it’s that seamless. The first big question is if that revenue number is actually a profit number. If not, you need to deduct the cost of the motors which changes the entire equation. The site gets 877 uniques a month, primarily from one search term. Ask yourself if there’s any way to increase this or if it’s just a small niche. How defensible is it?
Edugree.com – This site has potential for someone who wants to put in some serious elbow grease. Its annual revenues are $3500 on 31,000 monthly uniques. It’s stale, with the last post (according to the home page) in October 2010. This can be a problem, but is also a sign that there’s room to grow. I’d consider the SEO base and if that’s worth the $11,700 asking price.
Again, I’m a huge fan of the business model of buying and selling existing web sites. These are just my observations on these five sites.