3rd Dec 2013 | by: Nick LeRoy

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.

Final Numbers

dollas

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.

Want EMAIL Alerts When A New Post Goes Live?
I send an email out each time a new post is published. Never miss a post again! No. Spam. Ever. I Promise!

14 Comments

  • Reggie says:

    Thanks again Nick for being so easy to work with! It was definitely a win/win deal for both of us!

    • Nick LeRoy says:

      Thank you too Reggie. Transferring the website was less than perfect but I appreciate your patience. I hope you kill it with the website.

  • Daniel says:

    Wow, I didn’t see that coming. I’ll definitely be following along on Reggie’s site. Thanks for continuing to be transparent about this! For what it’s worth, I think you made a good deal, especially with the Amazon state ban.

  • Reggie says:

    Eh, I’ve dealt with much worse. Yeah, the site’s development is definitely going to be interesting!

  • MMD says:

    It’s too bad that the site wasn’t still making $500 per month because $8K would have been an incredible sum to report. But salvaging $800 for a site you were ready to move on from is better than earning next to nothing. What were your total expenses for this site again?

    • Nick LeRoy says:

      Yeah I hear you there! The next one i’ll hit low 5 figures!

      I did a poor job tracking the expenses but you can assume the domain, hosting and the content on the website was roughly $100.00. I bought one Hoth basic package at $60 for the site too. I forgot that I had purchased a $70 amazon product page plugin too (WPZonBuilder). So really it’s less than $300 total. Remember that in addition to the $800 sale I picked up two $4XX checks too. So strictly from a dollars standpoint I did well.

      Let’s not talk about time though. Between switching from Amazon to SKimlinks, redesigning the entire website and switching out all affiliate links multiple times im definitely in the red. DEFINITELY a great learning experience though.

  • Daniel says:

    Wow, didn’t expect to see this. Thanks for sharing it though and for ensuring it’ll continue to be a transparent case study. I’ll definitely keep following it on Reggie’s site.

  • Chris says:

    Hey Nick when do you think Amazon and Minnesota will have their affiliates going again?

  • Tim says:

    I think you got a fair price Nick. Sometimes its good to read things that reflect my own experiences that with niche websites its not easy to maintain their success.

  • Hey Nick, Thanks for sharing the story. Website valuation is really tough to determine in many cases – this one definitely had extra complexity.

    Overall, you did well… Everything you put into the site in the past is a sunk cost. Good move and now you can focus on your current projects.

    Reggie has a HUGE potential upside on this site. Good luck!
    Doug

  • Josh Escusa says:

    Hey Nick, congrats on the sale. Looking at the site, it doesn’t look like it has much links built to it so I think it can be salvaged. Hopefully Reggie will be able to turn the site around.

  • Swamy says:

    Nick,

    Not sure if you had got an Ideal Price for selling the niche site but Yes you did the right thin by selling it. I don’t think you will be able to concentrate fully having two niche sites which needs lot of care at the same time.

  • Alex says:

    Hi Nick, congrats on the sale and thanks for sharing the story. . Looking at the site wish Reggie will be successful.

Comments are closed.

FREE EMAIL UPDATES
I send an email out after every post is published. Never miss a post again!

Insurance Niche Income Tracker

Snapshot update on the auto insurance niche website BaltimoreCarInsurance.org

December Earnings: $27.09
January Earnings: $90.90
February $117.38

Top Ranking: #2 (March)

About Nick LeRoy

Nick-LeRoyNick LeRoy is the owner of Back Breaking SEO LLC a SEO company offering internet marketing services to small business owners.

In his free time he likes to build and monetize websites that allows his family an extra few dollars each month to enjoy the little "extras" in life.      To learn more about Nick click here

Get My eBook!

325x300orange1499