Thoughts on Flippa auction SonicProducer.com

[TrustButVerify]

https://flippa.com/2662825-est-click...ome-no-reserve

I thought this was an interesting auction - the sellers purchased it two years ago for around $100k. Looks like they made their money back and then some during it's ownership. The site appears to making 4-5k per month presently -but when you're in a steep decline like that you don't know where the bottom really is.

Here's my quick version of this site's life:
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-A good product is developed, well promoted and makes 10's of thousands of a month via affiliates

-After it peaks out in earning, it is sold on Flippa while still earning

-As the life cycle draws to a close, better, cheaper or even free products are available on the market, income continues to drop each month, seller see the writings on the wall and lists it on Flippa.

-It's true value shows itself at a selling price far below it's last 12 months of earnings = $38,500. Although a disappointment to the seller, it seems appropriate.


Bottom line: Not an ideal investment for a hands-off buyer, but possibly a great buy for someone who knows the industry and can redevelop the software to compete with today's offerings.


Your thoughts?

[meathead1234]

I'd agree with your comments.

It's really hard to say whether or not it's a good buy as there's no transparency over who the buyer is. Someone in the industry would see value where we wouldn't. A fantastic copywriter might be able to double conversion rates overnight. There's an endless list of people who would be able to turn the business around.

Even someone with no experience could probably just leave the site as is and let the site continue declining. At the multiple paid, they would probably still get their money back, with interest.

[ari]

I don't really think this is a lifecycle thing - I think that the original owner (BigBillions) was first to market, sold it off to someone who could care less and didn't do any development, and got their asses kicked by NCMedia (Norb from forums.nichechoppers.com).. I thought about buying it but I don't have the domain knowledge of the beats industry to really create a newer version that would bring it back on top.

[TrustButVerify]

I don't really think this is a lifecycle thing - I think that the original owner (BigBillions) was first to market, sold it off to someone who could care less and didn't do any development, and got their asses kicked by NCMedia (Norb from forums.nichechoppers.com).. I thought about buying it but I don't have the domain knowledge of the beats industry to really create a newer version that would bring it back on top.

Great point, there are still profitable products on the market but they didn't attempt to keep up with the times.

These look like the products you're referring to http://www.nichechoppers.com/niche-products.html

http://www.dubturbo.com/ http://www.cybersequencer.com/