published a very thorough piece on purchasing a digital asset.
From why to buy a digital asset, to who are the buyers? And how much should you pay, I found the article to be a good read.
If you are thinking about diversifying your digital asset business to more than just domain names, it’s worth checking out.
Content Sites:
We see these sell, on average, at a 1.95x annual profit multiple and have seen them sell for up to a 6x multiple. The reason that a content site, or really any digital asset for that matter, might sell for an extraordinarily high multiple is because the buyer sees a significant weakness in the company that can be fixed rather easily with their skills and then optimized to allow for a speedy return on their investment.
eCommerce:
In the wide world of eCommerce, we see sales, on average, of a 1.85x annual profit multiple with a high end at around 4.5x. It’s important to remember that there is a wide variety of eCommerce sites. They can be Amazon FBA stores, Shopify sites, drop shipping companies, print on demand services, or they can own their inventory and be running fulfillment themselves. All of these factors must go into the valuation of any given eCommerce store.
flippa full of scammers faking stats. their customer service is bad..un-coordinated runs you around for weeks. Their pricing is shady and confusing, with up-sells every step of the way. You’ll never get what you expect. You think you’re getting one thing by paying $60 to be on some featured page, but you get bumped off the same day!
Buy like 5-10 ETh n forget about it for 5-10 yrs
I made most of my money from content sites, but I would never buy one. Every google update make a site that was making money go to zero traffic and never make money again. Good time just to buy normal stocks.