🐇🎩 Service business multiples

Hey there 👋,

In this week’s Alts by Flippa newsletter I discuss:

  • Picking asking prices on services businesses
  • How to Find Good Website Deals on Flippa
  • This Week’s Flippa Featured Content Sites
  • Google giving TLDs it sells more search traffic?
  • This Week’s Flippa Featured Domains
  • Stop spending ETH on NFT tools

Every heading is a discussion channel in the Alts by Flippa discord community – come join over 1800 of us.

#acquisitions

Nate Ginsburg from Centurica drops the best chart so far in my opinion, showing asking price SDE multiples by business model:

SDE Multipliers By Model

It seems like the market has agreed on what the asking price for content sites (2x-4.5x) and e-commerce stores (1.5x-5.5x) should be.

Whereas with SaaS (2x – 7.5x) and especially service (with a range of 1x – 7x annual profit) it’s game on!

#contentsites

Back in 2020 I wrote a 5 part blog series for Flippa on how to invest in websites. Here’s the full list / thread on Twitter.

The final part of the series was How to Find Good Website Deals on Flippa which is something I’m now looking at again for myself (after 18 months focussed on crypto / NFTs).

In the post was a search string which no longer works so I needed to create some new ones.

Basically I want to buy potential (vs realised potential) rather than revenue.

This recent conversation on Twitter between me & Dom Wells sums it up well:

Screenshot 2022 09 20 at 15.27.16

Instead I want to buy site age, link history and search traffic that is spread across a large number of pages. And then blow it up with AI content from Content at Scale (mentioned in last week’s newsletter).

As such here is my new criteria:

  • Revenue-generating? Yes (but we’ll filter out anything significant)
  • Websites and Online businesses > Website Types > Content
  • Monthly Pageviews > 1,000+
  • Monthly Profit > $1-$500
  • Age > 3+ years
  • Includes only > Verified Traffic (data verified through Google Analytics)

And this is the new search string where there are currently 39 smaller revenue-generating websites for sale.

I would do a break down in terms of my due diligence thoughts and ways to generate upside but I’m already competing with myself enough with the above!

Instead I’ll just highlight a few larger revenue-generating content sites on the platform below that offer job-replacement level income.

This Week’s Flippa Featured Content Sites

5 year old content site in biking niche | Revenue from affiliate programs, Amazon Associates & Mediavine | 77K users L30D. Pre-approved on Boopos for $155K | Asking Price $395K | Confidential listing (will need NDA) | Listing URL

11 year content site brand in recipe niche | $7800/m av profit L3M from 18 affiliate programs, Amazon & AdThrive | 90K+ users from search L30D | 77K subscribers | Asking price $320K | Confidential listing | Listing URL

Successful 9-year-old, Content Site, in the Survival/Prepper Niche, Making $12,522/m from Diverse Sources in Affiliate Marketing and Display Advertising | Open listing by broker Joe Burrill so URLs are shown: ShtfPreparedness.com & ShtfDad.com | Asking price $360K | Listing URL

#domains

Andrew Allemann over at Domain Name Wire wrote a post on which new top level domains get the most traffic, and included this chart by Dataprovider.com:

New gTLDs traffic

With all the web3 companies over the last year, I would have expected .xyz to lead the pack, however it’s actually .dev top-level domain name operated by Google that is up top, with .app also in the top 5.

This Week’s Flippa Featured Domains

shoppingaddiction.com – $55 asking price at auction (2 bids), reserve not met, 9 days left

officialapps.com – $55 asking price at auction (2 bids), reserve not met, 22 days left

gamerworld.com – $350K asking price

wemakemillionaire.com – $2,999 asking price at auction (no bids), reserve $9,999, 23 days left

preschoolfromhome.com – asking price at auction $50K (no bids), reserve $60K, 24 days left

waterrok.com – asking price at auction $10 (no bids), reserve $49, 25 days left

giftdonations.com – asking price at auction $25 (3 bids), reserve not met, 25 days left

#nfts

The NFT God dropped a great thread on how it’s not necessary to spend ETH or buy NFT paid memberships for tools in order to make money, even in this bear market:

Back in my most active minting days last summer, I was using Icy Tools to find new trending collections, but his recommendation of Flips.Finance as his “cup of coffee” dashboard has definitely got me interested again in spending any spare ETH I have left.

Conclusion

That’s it for for this week, don’t forget to come join over 1800 of us in the Discord community where we discuss all these stories and more.

Screenshot 2022 09 20 at 18.59.53
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