Flippa Auction: www.littlepamperedpets.com

[HUM]

It would be a great to get your insight on auction - http://flippa.com/auctions/100921

Highlights -

Established 6 years ago, revenue stream, potential to expand, etc.

Concerns -

Stopped shipping in Mar 2010 to focus on their other business to cease revenue (which seems odd)
Time Intensive..

Thoughts?

Thanks

[petertdavis]

I wouldn't even consider a five figure investment in this unless I would also be able to acquire the domain PamperedPets.com. It's an easier to remember version of the site that's for sale's domain and I'm sure there is significant brand erosion going on there.

[Clinton]

I like this auction.

I'm concerned at the stopping of orders in March and I don't buy the reasons why they stopped. I'd want to look into that a bit more and draw my own conclusions. I'd also want to work out how many regular customers have permanently moved to another supplier.

The other area of concern is traffic. I've made my position clear elsewhere on this. I'm not a fan of relying on Google traffic and this site has a huge reliance on Google - over 80%. My comfort zone for this site would be 20%. I appreciate others may actually pay more for the fact that there seems to be a high volume of traffic being regularly driven at no cost. Note also that their GA graphs in the video show annual figures and 200K visitors looks quite good. On a daily basis they're getting more like 500 visits. That's not a huge number for a business of this kind.

In the seller's favour - though I didn't see any boasting about this - they do have what could be a very valuable customer list for repeat orders and direct promotion (compensating in part for any loss of SE rankings).

Bear in mind that the $6K net profit per month excludes the cost of labour. If the owner quotes it as a 20 hours per week requirement, it's usually safe to work on at least double that

[HUM]

Thanks for your comments.

Clinton, the sellers insist there has been no loss of traffic..but still not sure about the March cutoff.

All feedback is appreciated and wondering if anyone had any additional likes/dislikes about the site..

[Clinton]

I don't claim loss of traffic in the past, but potential to lose all Google traffic in the future. Sorry if that wasn't clear.

Will they let you test run their customer list?