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-   -   Whast's up with developed site multiples? (http://www.idnforums.com/forums/11289-whasts-up-with-developed-site-multiples.html)

touchring 26th May 2007 04:22 AM

Whast's up with developed site (ASCII) multiples?
 
I've recently been studying the possibility of acquiring one or two $xxxx revenue sites the past month or so.

Whast's up with developed site multiples for ASCIIs? About 2 years ago, when i last checked the market, ppl were selling developed sites on Reg fee type domains for like 12-24 mths (in some cases, 36 mths).

Now, if you visit sitepoint or digital point developed site forums, you'll see $xxxx a mth sites sold for 6-12 mths! Most are sold somewhere in between, like 7-9 mths.

To be honest, I've not monitored the trends the past year and half or so - spent too much time on idns - hope someone here can share with us "full-time" idners on what's going on in this market, and the causes. :o

On hindsight, i think we're quite lucky to have gone into idns when olney started the forum (thanks to olney :)). The rate of return on investment is definitely better than this! Notwithstanding the fact, there's still a great deal of untapped potential, particularly so for .com idns.

Fka200 26th May 2007 06:51 AM

Re: Whast's up with developed site (ASCII) multiples?
 
A majority of the sites are being sold for under 1 years revenue from what I've been noticing. I'm strictly IDNs, but always monitor the ASCII forums and watch what's going on.

9 months is normally the average.

Edwin 26th May 2007 07:06 AM

Re: Whast's up with developed site multiples?
 
That's because most of them are "junk" sites trading on or over the legal/illegal line e.g. file hosting, image hosting, proxy list, etc. i.e. covering subjects that are legally a grey area. There's correspondingly much more risk involved, in that e.g. you could be sued for copyright infringement tomorrow so nobody's willing to risk high multiples.

The occasional "solid" site (lots of backlinks, diversified traffic sources, long-established, niche leading, good unique content etc.) sells for slightly more, but there are so many of the quasi-scammy sites being sold that it's driving prices way down.

I'm not saying that all sites being sold are scammy - far from it - but the percentage of dubious sites on sale keeps on increasing... they're easy to churn out, and easy to monetise, and if you live in a "difficult" jurisdiction they're difficult to prosecute over too.

Personally, I hate the trend... but whether I like it or not is immaterial, as the trend is definitely there.

touchring 26th May 2007 07:20 AM

Re: Whast's up with developed site multiples?
 
Well, that explains it all - demand and supply. There's more supply than demand, pressing down prices.

Ironically, this can help explain the high prices on Snaps - many buyers but few names on sale.

Rubber Duck 26th May 2007 09:45 AM

Re: Whast's up with developed site multiples?
 
Don't know whether you have noticed, but they don't actually sell sites at Snapnames.


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