What types of websites do you buy? 2012 Edition

[WSYSBroker]

I am always curious to know what types of sites the smart, knowledgeable people on this forum like to buy. After a year where Google pulled the rug from underneath us and many sites that appeared to be great investments were clearly not, it would be great to know what you think makes a good investment now online.

Do you like e-commerce sites? (Inventory based or Drop-ship)
Ad-driven sites?
Affiliate Income Sites?
Forums?
Blogs?
Lead Generation sites?
Membership based sites?
Service based sites?
Digital Product sites?

What niches do you like the most?

What types of sites do you think are the most stable coming into 2012?


It would be great to get a list together of types of sites or niches that make the best investments in 2012. Let's put aside metrics that we all like to look at (High PR, long history, steady or growing traffic, lots of back links, increasing earnings, etc) and focus on the actual types of sites, monetization methods and niches that make the best investments.



Any takers?

[benitez17]

I actually didn't buy much of anything last year because things were so unsettled after Panda and the follow-on changes, so I ended up investing more time and money in my existing sites, with good results and very, very little risk. I plan to do more of the same this year unless a good deal comes along.

To answer your questions:

I have had the most success with membership based sites and blogs, so that's what I am preferential to. Lead generation sites intrigue me as well, but I've never bought one.

I think the best investments for 2012 and the foreseeable future are ones that don't rely on the whims of Google.

[ScottJ]

I have tended towards educational sites, sites that are really content rich written by people in the know, traffic is seasonal but I do tend to get quite a few thank you emails for the free resource from students, teachers and professors and therefore links come freely and naturally and as info sites they shouldn't really be on the radar of Google in the near future unlike commerce.

[petertdavis]

Forums here. Did six figures worth of transactions last year, and don't see it slowing down at all.

[Clinton]

What type of forums, Peter, and what monetising methods?

Also, what do you predict for the market in 2012?

[Slowdive]

I am a little useless to you as I tend to scavenge domains or pick sites up out of obscurity.
Ecommerce sites with a unique product. Something that has not been replicated cheaply yet. As a result I tend to build them not buy them as I want control of my stock, I have had some luck reselling them and then acting as a drop shipper though.

Dropshipping sites are something I would buy when I get around to buying established sites as outside of the intial outlay which if its a good niche is for a multi purpose site, the risk is minimal.

Service based sites are great and especially if they are established in a local niche, I have been known to buy those on occasion.

I would buy established forums in my niche but those are usually few and far between.

Really though I am not sure I am in your spending bracket as yet, but that is my preference for what its worth.

[petertdavis]

What type of forums, Peter, and what monetising methods?

Also, what do you predict for the market in 2012?

All kinds of forums. Well, there are a few niches I won't touch, like warez forums, and porn. I recently bought a forum for law enforcement professionals, for example. Found that one listed on Flippa of all places (yea, once or twice a year you'll see a good one listed there!). Forums monetize mostly with advertising. I think this year, good strong earning forums will continue to appreciate in value. There are some big players with very deep pockets who are paying big bucks for big forums. I'm also seeing more and more forums built up with fake members and posts that come up for sale. It can be a real minefield if you're buying on the lower end of the market.

[Kay]

Peter, I'm interested in what you've written there, and very curious about prices. Just as a rough guide could you put some figures on "the lower end of the market", mid range and high end? Just a range, maybe low end = >$10k. Mid = ? I've no idea, but it would be really interesting to know what kind of prices forums go for.

Do they tend to sell for multiples of profit in the same way as other sites? Are the intangibles taken into account? (Meaning how a forum can be a great place to promote and advertise the owner's other business ventures or add to an existing portfolio.)

[petertdavis]

Yea, low end would be sub-$10k. Multiples of revenue are useful only in that there isn't really a better way to get at a value. Everyone has their own motivation for buying a forum, so certainly intangibles could be a factor depending on the individual circumstances.

[eddiebooth]

How do you get a new forum high enough in the rankings for new people to find it?
I can understand how ecommerce sites do this but do people actively search for forums, I know I dont (I stumbled upon this one while looking for something else)