The State of the Industry Report is published each month covering data, news, insights, and more from the website investing world. This report curates information to give you the edge over other website investors.
This report is powered by DealFeed.io, our proprietary aggregation tool that pulls in websites for sale from all top brokers.
This August 2021 report includes:
- Content website brokers compared (price, multiple, live listings)
- Metrics of top brokers (Empire Flippers, Investors Club, Motion Invest)
- Most popular niches ranked
- Website investing news (broker updates, website fund updates)
- My opinion of the market trends
Note that the report discusses primarily content-based websites, not SaaS or e-commerce.
Let’s get into it!
Top Content Website Brokers Compared
|Broker||Total Price||Average Multiple||Live Listings|
Empire Flippers continue to lead the market with the most live listings and the highest average multiple. The average multiple of Empire Flippers is 17% higher than Investors.Club, representing a significant price premium.
Although Investors.Club has the second most listings, many of their listings have been sitting for 3 months or more. Motion Invest has fewer listings, but their listings sell quickly (11.1 days on average).
Note that even though average list multiples are creeping up, savvy buyers understand the true average multiple to be around 35X. Significant negotiations take effect “behind the scenes” to bring down the final sales multiple.
Most Popular Niches Ranked
|Home and Kitchen||17||39.7x|
Website listings in the outdoor niche had the highest average multiple of 43.9x while website listings in the home improvement niche had the lowest average multiple of 35.4x.
Note: The outdoor niche is very seasonal, so it is surprising that it has the highest multiple even though we have passed the high-earning summer season. Buyers of an outdoor website in September may experience a decline in earnings during fall and winter as fewer people search for outdoor-related keywords.
Empire Flippers Overview
- Listings sold in August 2021: 85
- Number of listings live: 94
- Total sale price: $49,382,489
- Average sale price: $525,346
- Average multiple: 41.5x
Within the live website listings, 78 are monetized with affiliate marketing (e.g., Amazon, ShareASale) and 48 with display advertisements (e.g., Mediavine, AdThrive, Ezoic). Many listings are monetized with both strategies.
- Number of listings live: 35
- Total sale price: $3,531,671
- Average sale price: $100,905
- Average multiple: 35.5x
- Listings sold in August 2021: 5
Within the live website listings, 25 are monetized with affiliate marketing (e.g., Amazon, ShareASale) and 7 with display advertisements (e.g., Mediavine, AdThrive, Ezoic). Many listings are monetized with both strategies.
Motion Invest Overview
- Number of listings live: 18
- Total sale price: $755,890
- Average sale price: $41,994
- Average multiple: 34.5x
Within the live website listings, 18 are monetized with affiliate marketing (e.g., Amazon, ShareASale) and 3 with display advertisements (e.g., Mediavine, AdThrive, Ezoic). Many listings are monetized with both strategies.
🚀 Website Investing News
Keep tabs on industry news. Here are the top things to know:
Empire Flippers Q2 Report
Empire Flippers recently shared data from their Q2 2021 report:
- In Q2, Empire Flippers had $47,154,562.14 in revenue from brokering website sales.
- This was their second-highest revenue quarter ever after Q1 2021.
- In Q2, they received 2,150 seller submissions and created valuations for 167 websites that were listed on the marketplace.
- Empire Flippers raised $7 million for the first round of Empire Flippers Capital.
Motion Invest Stats After 2 Years
Spencer Haws revealed some new data from the first two years of the Motion Invest marketplace.
- 297 out of 308 listings have sold (11 listings did not sell).
- It takes an average of 11.1 days for a listing to sell.
- On average, websites sold for a multiple of 35.5x.
Out of all the brokerages I track, Motion Invest is by far the most liquid. This is primarily due to the price point of listing sites less than $50,000.
Even at The Website Flip brokerage that we run, sites under $20K sell within hours. It’s a very liquid market.
Onfolio HoldCo Update
Onfolio offers a Series A preferred share providing 12% annual dividend. They acquire online businesses, operate them, and provide a quarterly dividend payout. It is headed by Dom Wells, the previous owner of Human Proof Designs. For more details, read this write-up.
Here are some updates Dom shared with me:
- Raised $1.2M from preferred shares so far from 40 investors.
- Paid 2 dividends so far (for Q1 and Q2 2021). Next dividend payment is Sep 30.
- Started the legal financial audit. This will be available in October.
Dom has done a great job getting this started. I will keep track of their milestones every month.
Domain Magnate Fund Update
This fund is headed by Michael Bereslavsky. He has been buying and selling sites for over a decade now and has been running a website investment fund for a few years. I covered his fund in this write-up.
- Fund is open and accepting new investors. Check it out here.
- Group Buy offering will be live soon. View here. A group buy is where a group of investors go in on a deal together.
- They are hiring for a Deal Manager role. Check that out here.
My Opinion Of The Market
The website investing industry is not slowing down any time soon. The multiples in just mid-2020 to now have increased from an average of 35X to 40X.
One thing to note is that with brokers, the effective multiple is “masked” by their brokerage fees. Empire Flippers fee is typically 15%, Motion Invest at 20%, and Investors.Club at 5%.
The liquidity in the market allows for “website flippers” to get in and out. It is currently a strong seller’s market with deals getting into Escrow within hours, and then a full disbursement of funds in less than 1 week. I envision the seller’s market to continue well into 2022.
Stay tuned for future updates!