Deal Flow (Oct. 5): 2 Flippa Auction Sites, 1 Aged Domain

Mushfiqur Sarker

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Today’s Authority Business Blueprints features two auction sites from Flippa (tech and camping niches) and a domain from ODYS Global (fashion niche).

Let’s get into the growth blueprints!


Blueprint #1: NotCouture.com

Domain Summary

Type: Aged Domain

Niche: Fashion

Source: ODYS.Global

Age: 2007 (14 years old)

Listed Price: $3,710

AHREFS

Screen Shot 2021 10 02 at 10.19.59 AM

Backlinks: This domain has notable backlinks from The Awesomer, American Express, This Is Glamorous, Signature9, Weird Worm, and more.

Site History

This site used to be home to a network of design sites. It consisted of an innovative community full of creatives, design lovers, and trendsetters that shared ideas, aesthetics, and amusements.

Here is a snapshot of the past site:

Screen Shot 2021 10 02 at 10.25.17 AM

Growth Blueprint

While the overarching fashion niche is high competition, there are many sub-niches that have significant traffic and low competition keywords. The riches are actually in the sub-niches.

This niche does well to generate traffic from organic search plus Pinterest. You can promote content to both channels.

Monetization can be done easily with display ads (specifically Mediavine which does well in this niche), and affiliate marketing. ShareASale has plenty of brands for clothing, shoes, etc that can be promoted to the audience of the site.


Blueprint #2: IdealCPU.com

Website Summary

Type: Existing Content Site

Niche: Computers

Source: Flippa (see listing here)

Revenue: $228/mo via Amazon Associates over last 12-months, $455/mo average over last 6-months

AHREFS

Screen Shot 2021 10 02 at 10.56.48 AM

Due Diligence Dashboard

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Growth Blueprint

Highlights

  • Growing traffic trend
  • Niche with abundance of low-competition keywords
  • No toxic backlinks

Setbacks

  • Products update in this niche regularly; content updates need to be more frequent
  • Commissions are relatively lower (1%) through Amazon than other niches

Easy Wins

  • Add Ezoic for additional revenue stream (tech niche has good EPMVs)
  • Add comparison tables to buying guides
  • Some buying guide are not linking images with affiliate links
  • Minimal internal links used on the site; needs to be increased

Takeaway

This site exhibits a month-over-month growth trend in both traffic and revenues. The most recent month is $800, whereas the average is $228. According to my website flip lifecycle, both buying and selling on an uptrend have significant benefits for both parties.

For a buyer, you can pay the 6-month average (i.e., $228) on a site whereas the recent months are earning 2-3X that (i.e., $800).

One red flag with the site is that the top page gets ~25% of traffic. However, with a young site like this, it’s expected. A few articles will overperform others until the traffic stabilizes to its average.

As for a valuation, this site warrants a 35X multiple of the last 6-months according to the valuation framework. This equates to $15,925. However, for more negotiating power, you could make a case to use the L12M average of $228 to valua the site; equating to $7,980. This is the range I would play in.


Blueprint #3: CampingChallenge.com

Website Summary

Type: Existing Content Site

Niche: Outdoors (camping)

Source: Flippa (see listing)

Revenue: $66/mo average from Amazon Associate over last 3-months

AHREFS

CleanShot 2021 10 05 at

Due Diligence Dashboard

CleanShot 2021 10 05 at

Growth Blueprint

Highlights

  • Starter site with growing keyword positions and traffic
  • Good niche with multiple revenue source opportunities

Setbacks

  • Starter site will take more content and time to grow
  • Niche is seasonal

Easy Wins

  • Add Ezoic for additional revenue stream
  • Some buying guide do not have comparison tables
  • Minimal to no internal links used on the site; needs to be increased

Takeaway

If you are looking to buy a starter site that’s well-designed has a bulk amount of content (100,000 words), then this would be a good purchase. It will take more effort and investment into content and backlinks to further grow the site.

Adding in Ezoic would increase the earnings by another $15-$20 per month (assuming 1,000 page views per month).

As for a valuation, there are two approaches here: (1) wholesale cos to rebuild this starter site from scratch, and (2) based on a multiple of earnings.

For the wholesale cost, we can utilize the calculator here to understand its value. Here are the inputs:

  • Domain age: 1 years
  • How many articles: 40
  • Total word count: 100,000 words
  • Backlinks (DR50+): 0
  • Backlinks (DR20-DR30): 1
  • Site build-out costs: Yes

The value based on the calculator is $2,520. This is essentially the wholesale cost to re-create this same site from scratch if you were to do it without taking into consideration the existing traffic value.

For the traditional revenue-based valuation, using the L3M average of $66/mo since the site is young at a 35X multiple, puts the valuation at $2,310.

Valuation: Think about paying anywhere between $2,310 and $2,520 for this starter site.


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Wrap Up

These blueprints lay out the high-level strategies to accelerate your ROI after the acquisition. Of course, the real effort is putting all of this into practice.

For more resources, make sure to read the following guides:



Mushfiqur Sarker

Analyzed by Mushfiq Sarker

Mushfiq has been buying, growing, and selling website assets since 2008. His first exit was in 2010. Since then, he has done 215+ website flips with multiple 6-figure exits. Learn more about Mushfiq.


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