The ride was wild while it lasted. I sold BestCanisterVacuums.net this week.
From earning just shy of $500 a month to being kicked out of Amazon and redesigning the entire website to utilize WalMart and Target affiliates. After being kicked out of Amazon due to being in a state that wants to collect sales tax on internet sales things were never the same. It certainly didn’t help that I was having issues maintaining rankings and my conversion rates plummeted after switching affiliate offerings.
With all of this happening I figured I had two options. I could sit on the website in hopes that I could one day rejoin Amazon or I could get rid of the site for whatever it might be worth to someone. I never really gave the second option a thought. That is until Reggie Paquette contacted me. He had seen my feature on NichePursuits.com and read many of the previous posts on my blog showing that this site is capable of generating 400-500 dollars a month. Let’s just say that Reggie was going to get this website. His enthusiasm about the sites potential was great to see!
Establishing Value & Working Out A Deal
Both Reggie and I tip toed around price as this website is in such a state of flux. It obviously isn’t generating $500 a month right now but it had a lot of great content and was still getting traffic with a decent affiliate click through rate. Conversion was garbage but Reggie and I both realized that this sites potential was in Amazon not Target and WalMart as I had been forced to use.
Reggie took a very smart approach to determining what he felt was a fair price for this website. I wasn’t completely sold on the idea of selling the site just yet but since he was a nice guy and showed a lot of enthusiasm for the sites potential I was more than happy to hear him out. After giving him access to Google Analytics, sales data and products shipped info, Reggie shared with me his formula for calculating his offer. This is what he used:
Unique Visitors x Conversion Rate to Affiliate Link Clicks = Total Affiliate Clicks
Total Affiliate Clicks x Average Conversion Rate = Monthly Order Average.
He then took the products shipped list I gave him and averaged out the average commission per item shipped. He then added that to his equation.
Monthly Orders x Average Commission Per Item Shipped = Monthly Income
This is where things get a little more subjective. Website valuation and sale price are typically determined by using monthly income X a monthly multiple somewhere in the range of 10-20 months. For instance a website that makes $100 a month that is sold for a 12 month multiple in theory is worth $1200. There are of course other factors such as premium domains, traffic / page views, staff on hand, social accounts and even the niche in which the website is in.
Reggie’s initial offer was my monthly October 2013 income from the website with a 16 month multiple. If the website was still pumping out $500 checks each month that would be $8000.00! Unfortunately this wasn’t the case but still a number (though significantly lower) worth considering given the state of the website.
I contemplated keeping the details of the sale private but after talking to Reggie we agreed to continue with the transparency of this website. After some back and forward conversations we agreed on a final price of $800.00 Did I get rich on this deal? Absolutely not. Is Reggie taking a risk on a site that’s currently a shadow of its former self? Yes. This is where it works out for both of us. The extra cash will help out with Christmas expenses in addition to financing few other ideas I have for my public insurance niche site BaltimoreCarInsurance.org. Reggie gets a website that has proven to make money in the past and hopefully with some time, money and resources he can get it back to its prime.
BestCanisterVacuums.Net is STILL a Public Niche Site!
Upon purchasing the website Reggie agreed to keep publishing updates as he works on resurrecting this website. For his first post regarding the vacuum site check out his blog over at www.regpaq.com. I know i’ll be keeping an eye out on his updates.
Did I get too excited about the idea of selling a site that wasn’t making much of anything for pennies on the dollar? Or did I get rid of a site that’s already pass its prime? To be honest there is nothing more I would like to see then to watch Reggie absolutely dominate with the site and get it back up to its $500/m days. It won’t be easy and Reggie is fully aware of this but when we talked a bit about strategy it sounds like he has the budget and time to dedicate to this website. In my opinion this sale was a win/win for both of us.