I'm relatively new to the site buying world, but am pretty captivated by it's potential. I own a couple of small, but successful sites which I've bought as established. I'm thinking about selling a site (my breadwinner) and wanted to see what you folk made of it. Here is a brief background:
I stumbled across a site a couple of years ago. I saw that it was ranked well, that it could be improved greatly and featured little monetisation. I approached the owner directly and negotiated the price. I paid $11k and subsequently invested ~$4k on redevelopment (design, features) and outsourcing new content creation.
The site is evergreen and self-reliant. There is some UGC activity which provides fresh content. Traffic continues to grow slowly and will undoubtedly continue to do so over time. Most users originate from the US and other English speaking countries, but it has good reach elsewhere.
The content is geared towards children and parents. I just use AdSense at present (I previously dabbled with ringtones) and the site reliably clocks in ~$45/day in revenue. There are zero running costs (advertising etc.) - so the only cost is hosting and domain renewal. Therefore the site generates ~$15k in annual profit.
A couple of weeks ago a buyer approached me directly. We negotiated the price and agreed to $36.5k. I now need to decide whether to sign on the dotted paper and go through with the transaction.
+ I get a bunch of cash with rewards my efforts and I can enjoy some of that for myself.
+ I can buy some more sites with unrealised potential and grow them more rapidly than I can do with this site.
+ I do prefer the tasks associated with buying a new site and redeveloping it.
- I loose my cash cow. My other key site doesn't generate nearly as much revenue, so I will lose my income stream.
- The site is still not 100% maximised in its potential. There is more I can do to maximise monetisation and increase traffic. Therefore, I'm selling at a multiple which doesn't reflect the sites true potential.
- I can use the site's income to buy more sites, just at a much slower pace.
- It's a perfect site in many ways; evergreen, self-reliant and trouble free.
- Buying new sites carries risk. At the moment I am pretty much risk-free.
- Maybe I was just lucky with this site and I won't be able to snatch up any other deals.
So, what should I do -shall I sell the site? Is the offer a good one?
Love to hear your thoughts. Let me know if you have any clarifying questions.