What Price Will This Site / Business Sell for?

robfer · 09-16-2009, 09:04 AM

I read on dnw.com that this site / company is for sale Wanna Buy Xoxide? at Xoxide!

They have huge revenue but no one knows the actual profits, I am currently the top bidder over at Sedo and I wont say what I have my proxy bid set too but what price would you pay / think the site will sell for?

It's doing 200k a month in rev & over 1.7m page views.

Spade · 09-16-2009, 01:38 PM

Huge questionmarks.

owntype · 09-16-2009, 02:50 PM

If you already have worked and experienced in PC parts business, having a good vendor source to import your products, and be ready to focus on taking over this business (parts + diy products).

Then it's worth $150k+

JoshuaPz · 09-16-2009, 03:36 PM

This is a $10M baseline acquisition if the company is earning that much. If the company is willing to accept any less than $10M for a buyout, this should raise to serious red flags.

bmugford · 09-16-2009, 03:45 PM

I agree. The way this domain is being sold seems very odd IMO.

Brad

Originally Posted by JoshuaPz

This is a $10M baseline acquisition if the company is earning that much. If the company is willing to accept any less than $10M for a buyout, this should raise to serious red flags.

Spade · 09-16-2009, 03:49 PM

Originally Posted by JoshuaPz

This is a $10M baseline acquisition if the company is earning that much. If the company is willing to accept any less than $10M for a buyout, this should raise to serious red flags.

They are showing their Gross Profit. Who knows what kind of margins they are working with.

JoshuaPz · 09-16-2009, 04:16 PM

Originally Posted by Spade

They are showing their Gross Profit. Who knows what kind of margins they are working with.

Goodness. If they aren't willing to reveal Net Profit, this should rouse yet more suspicion.
????: NamePros.com http://www.namepros.com/domain-name-discussion/610509-what-price-will-site-business-sell.html

I'm also not sure the OP realizes how much skill and manpower is required to maintain a $2.4M/year business. Is he prepared to rent out an office space, qualified to become the CEO of (or hire) 20+ engineers, promote the company based on intimate knowledge of the underlying industry, maintain prior relationships with customers / provide technical support, and carry the company in a positive direction? He will have to quit domaining entirely and will still hardly get a wink of sleep for the next 2 years.

I have 10 years of software development experience and have lead many teams, and I would not even consider myself qualified to run a 20-man engineering firm (not yet anyway).

Spade · 09-16-2009, 05:07 PM

Originally Posted by JoshuaPz

Goodness. If they aren't willing to reveal Net Profit, this should rouse yet more suspicion.

I'm also not sure the OP realizes how much skill and manpower is required to maintain a $2.4M/year business. Is he prepared to rent out an office space, qualified to become the CEO of (or hire) 20+ engineers, promote the company based on intimate knowledge of the underlying industry, maintain prior relationships with customers / provide technical support, and carry the company in a positive direction? He will have to quit domaining entirely and will still hardly get a wink of sleep for the next 2 years.
????: NamePros.com http://www.namepros.com/showthread.php?t=610509

I have 10 years of software development experience and have lead many teams, and I would not even consider myself qualified to run a 20-man engineering firm (not yet anyway).

Which leads back to my original post; "Huge Questionmarks" =)

plaggypig · 09-16-2009, 05:22 PM

Impossible to value without due diligence. I can't understand why such basic and important information has not been disclosed. Smells fishy. My guess would be that the margins on the stuff they're selling are wafer thin and cash flow is a problem, forcing the sale.

If you're just interested in buying the assets (domain/brand/traffic) then I suppose it's easier to value, but you'd better have a strategy you can implement quickly to retain their value as you try and restart the business.

Best of luck!

DubDubDubDot · 09-16-2009, 05:45 PM

The ideal buyer is an existing business that can easily absorb it.

The only thing they are selling is a brand. There is no internal business or inventory included. These are things a startup buyer is going to have to quickly rebuild.

If this is going to sell for significantly more than the $10,000 it's at now, then qualified buyers have already been given complete data and will bid closer to the end.

***Practical*** · 09-16-2009, 07:20 PM

My analysis would indicate about 40k uniques with about $1 per unique profit estimate, or 1/2 million profit per year. Here's a breakdown:

Pagerank 3 - despite the age of 9 years, it doesn't need Google backlinks to achieve: #1 ranking for "computer cases" without quotes. Max bid for same term is $1.80 and avg search volume is 50k monthly.

Alexa shows most of this site's visitors are from the US. Compete shows US uniques at 40k per month. Both sites show computer cases to be the top search term driving 5% or more of traffic to the site.

This domain doesn't need to spend that $1.8 per user that some other computer case company might need in order to get on the top of that page, so it's likely their total profit for the 5k uniques on that term is about $3 per unique. So right there that's 15k per month. Based on their other keywords and the bidding and their rank in search, they are making between 50 cents and $1 per the other uniques or let's average out around 25k per month.

So in total they should be around 40k profit per month, unless there is something drastically wrong. Alexa trend shows some real decline over since two years ago, possibly attributable to the general decline in search volume for the terms they are strong in.

So 2.4m gross and 500k profit is still pretty good. No idea why it is being sold at Sedo instead of somewhere else but I have a call into a friend who is a computer cases manufacturer to see what he knows.

DubDubDubDot · 09-17-2009, 01:41 AM

Originally Posted by Wire

My analysis would indicate

Unfortunately it is impossible to nail down the financials using traffic guesstimators and Google keyword tool.

By the way, Compete is to traffic what Estibot is to appraisals. They report 40,000 uniques per month, but Xoxide's provided data shows 227,000 uniques and 306,000 visits for August.

***Practical*** · 09-17-2009, 04:34 AM

Impossible is right. But these are the tools we have at our disposal so that's the best we can offer. This doesn't mean right or wrong but it is an attempt to allow us to see beyond the hype.
????: NamePros.com http://www.namepros.com/showthread.php?t=610509

Originally Posted by DubDubDubDot

Unfortunately it is impossible to nail down the financials using traffic guesstimators and Google keyword tool.

By the way, Compete is to traffic what Estibot is to appraisals. They report 40,000 uniques per month, but Xoxide's provided data shows 227,000 uniques and 306,000 visits for August.

matrigaldo · 09-17-2009, 05:17 AM

I would be suspicious too, this listing doesn't convince me at all.

coltter · 09-17-2009, 06:00 AM

i have no any idea that the site make such revenue,
don't waste the money...

SeanPreston · 09-17-2009, 06:07 AM

I must agree, if someone had a company making this much in this area, why sell it on Sedo?

His first option should be to contact computer companies with business already running well and hope that they will buy it to expand. Assuming he has tried this and they said no, or maybe theres a reason he didnt try it...both point to me that something is wrong.

If not, its a great buy and could make someone very rich if they continue to expand. What also shocked me is that they are advertising it for sale on the site, I can't see a company earning that much telling there customers that there selling it, it would instantly put future customer off buying from them.

Regards,
Sean

Len · 09-17-2009, 06:31 AM

Strange boost in alexa traffic rank from Sept 7th when it was well over 60,000 to today at less than 10,000. Also a surge in daily pageviews which theoretically could be due to the blowout sale however seems too good to be true.
I would tread carefully.

robfer · 09-17-2009, 06:38 AM

Well its @ $11,099 - With 5hr to go - I hav pulled out, Too many questions not enough answers! I emailed them direct but never got a reply.

footodors · 09-17-2009, 07:43 AM

Just look at it as an expired domain. The traffic and rankings alone make it quite enticing.
One question, though.
If you only buy the domain name (no trademarks, no business transfer, etc.), would you be considered the new owner of the entire business and have have to assume any liabilities (legal like lawsuits, etc.) from the business itself?
I don't think the new owner of just a domain would have to worry as the domain is just one piece of capital in a business, sort of like selling the office equipment, etc.
Am I wrong?

robfer · 09-17-2009, 07:51 AM

Originally Posted by footodors

Just look at it as an expired domain. The traffic and rankings alone make it quite enticing.
One question, though.
If you only buy the domain name (no trademarks, no business transfer, etc.), would you be considered the new owner of the entire business and have have to assume any liabilities (legal like lawsuits, etc.) from the business itself?
I don't think the new owner of just a domain would have to worry as the domain is just one piece of capital in a business, sort of like selling the office equipment, etc.
Am I wrong?

Thats a good question!

I looked at orginally for the traffic and though of sending to one of my affiliate link programs where I should have made that cash back in one month before all the traffic goes away but anyway I hope someone that is going to use it for a business gets it - Price now @ $11,599 with 4hr 40 min left

owntype · 09-17-2009, 01:28 PM

Closed @ $76,000 that's a bargain to the right buyer. (hopefully he has the source and experience to manage the business to further success)

Congrats!

sashas · 09-17-2009, 01:55 PM

the profit margins on items like these isn't very high. Amazon, with all its revenue, still makes not a whole lot of profit.

But then again, companies like these aren't judged on profit basis, but on revenue. If one were to sell by profit, then GM would be worth in negative numbers.

metrisoft · 09-17-2009, 02:27 PM

I talked to the now former owner of Xoxide last night. This is a legitimate business and a great opportunity for the buyer. Organic traffic to this site based on incredibly strong keyword performance is amazing. I just hope the buyer keeps it going.

***Practical*** · 09-17-2009, 03:49 PM

Reposted my early statements on my blog as well as some additional info. I have modified my analysis a bit to lowball the expected annual revenue.

XoXide.com - an example in traffic analysis

09-16-2009, 09:04 AM	THREAD STARTER #1 (permalink)
robfer Senior Member Join Date: Apr 2008 Location: Motherwell,Scotland Posts: 1,585	What Price Will This Site / Business Sell for? I read on dnw.com that this site / company is for sale Wanna Buy Xoxide? at Xoxide! They have huge revenue but no one knows the actual profits, I am currently the top bidder over at Sedo and I wont say what I have my proxy bid set too but what price would you pay / think the site will sell for? It's doing 200k a month in rev & over 1.7m page views. __________________ [RobbiesBlog.com - Robbie's Blog [/SIZE]

09-16-2009, 01:38 PM	#2 (permalink)
Spade NameBio.com Founder Join Date: Sep 2006 Location: Carlsbad, CA Posts: 7,855	Huge questionmarks. __________________ Read my Blog! NameBio.com - Search The Domain Sales Index Buying LLLL.com's ending in "CA"

09-16-2009, 02:50 PM	#3 (permalink)
owntype Senior Member Join Date: Jul 2006 Posts: 3,137	If you already have worked and experienced in PC parts business, having a good vendor source to import your products, and be ready to focus on taking over this business (parts + diy products). Then it's worth $150k+ __________________ A B C D E F G H I J K L M N O P Q R S T U V W X Y Z . C O M

09-16-2009, 03:36 PM	#4 (permalink)
JoshuaPz Senior Member Join Date: Jul 2008 Posts: 1,131	This is a $10M baseline acquisition if the company is earning that much. If the company is willing to accept any less than $10M for a buyout, this should raise to serious red flags. __________________ NameFlipper: Make $250/hour catching & reselling domains to end-users! (Soon-to-drop domains with sales leads, free end-user e-mail sales templates, and free pricing guide) DandyDomains.com: Discount exact-match domains, pre-screened to ensure quality, end-user need, and zero trademark conflicts.

09-17-2009, 05:17 AM	#14 (permalink)
matrigaldo Senior Member Join Date: Sep 2008 Posts: 1,085	I would be suspicious too, this listing doesn't convince me at all. __________________ Traffic PR 1/2/3 developed websites ( >500 uv/day) for sale PM me for more info SuperTelePhotoLens.com\|ClipArtVideo.com\|OnlyDrinks.com\|AmazingVideos.info

09-16-2009, 05:22 PM	#9 (permalink)
plaggypig NamePros Regular Join Date: Dec 2007 Location: UK Posts: 588	Impossible to value without due diligence. I can't understand why such basic and important information has not been disclosed. Smells fishy. My guess would be that the margins on the stuff they're selling are wafer thin and cash flow is a problem, forcing the sale. If you're just interested in buying the assets (domain/brand/traffic) then I suppose it's easier to value, but you'd better have a strategy you can implement quickly to retain their value as you try and restart the business. Best of luck!

09-16-2009, 05:45 PM	#10 (permalink)
DubDubDubDot Senior Member Join Date: May 2008 Posts: 1,592	The ideal buyer is an existing business that can easily absorb it. The only thing they are selling is a brand. There is no internal business or inventory included. These are things a startup buyer is going to have to quickly rebuild. If this is going to sell for significantly more than the $10,000 it's at now, then qualified buyers have already been given complete data and will bid closer to the end.

09-16-2009, 07:20 PM	#11 (permalink)
*Practical* Name Seller Join Date: Jul 2008 Location: NYC Posts: 1,065 Follow @dnauctions	My analysis would indicate about 40k uniques with about $1 per unique profit estimate, or 1/2 million profit per year. Here's a breakdown: Pagerank 3 - despite the age of 9 years, it doesn't need Google backlinks to achieve: #1 ranking for "computer cases" without quotes. Max bid for same term is $1.80 and avg search volume is 50k monthly. Alexa shows most of this site's visitors are from the US. Compete shows US uniques at 40k per month. Both sites show computer cases to be the top search term driving 5% or more of traffic to the site. This domain doesn't need to spend that $1.8 per user that some other computer case company might need in order to get on the top of that page, so it's likely their total profit for the 5k uniques on that term is about $3 per unique. So right there that's 15k per month. Based on their other keywords and the bidding and their rank in search, they are making between 50 cents and $1 per the other uniques or let's average out around 25k per month. So in total they should be around 40k profit per month, unless there is something drastically wrong. Alexa trend shows some real decline over since two years ago, possibly attributable to the general decline in search volume for the terms they are strong in. So 2.4m gross and 500k profit is still pretty good. No idea why it is being sold at Sedo instead of somewhere else but I have a call into a friend who is a computer cases manufacturer to see what he knows.

09-17-2009, 06:00 AM	#15 (permalink)
coltter NamePros Regular Join Date: Aug 2009 Posts: 230	i have no any idea that the site make such revenue, don't waste the money... __________________ ►Web Directory ✿ Shopping Directory ★ Casino Summit █ Look for a Reliable & Cheap Host? Check out Top 10 Web Hosting Providers Review. █ Find the Best Dedicated Hosting - Delightful Hosts

09-17-2009, 06:07 AM	#16 (permalink)
SeanPreston Senior Member Join Date: Nov 2005 Location: UK Posts: 1,278	I must agree, if someone had a company making this much in this area, why sell it on Sedo? His first option should be to contact computer companies with business already running well and hope that they will buy it to expand. Assuming he has tried this and they said no, or maybe theres a reason he didnt try it...both point to me that something is wrong. If not, its a great buy and could make someone very rich if they continue to expand. What also shocked me is that they are advertising it for sale on the site, I can't see a company earning that much telling there customers that there selling it, it would instantly put future customer off buying from them. Regards, Sean

09-17-2009, 06:31 AM	#17 (permalink)
Len dot TV'er Join Date: Feb 2007 Location: Central Ontario, Canada Posts: 3,757	Strange boost in alexa traffic rank from Sept 7th when it was well over 60,000 to today at less than 10,000. Also a surge in daily pageviews which theoretically could be due to the blowout sale however seems too good to be true. I would tread carefully.

09-17-2009, 06:38 AM	THREAD STARTER #18 (permalink)
robfer Senior Member Join Date: Apr 2008 Location: Motherwell,Scotland Posts: 1,585	Well its @ $11,099 - With 5hr to go - I hav pulled out, Too many questions not enough answers! I emailed them direct but never got a reply. __________________ [RobbiesBlog.com - Robbie's Blog [/SIZE]

09-17-2009, 07:43 AM	#19 (permalink)
footodors NamePros Regular Join Date: Feb 2006 Location: RI Posts: 288	Just look at it as an expired domain. The traffic and rankings alone make it quite enticing. One question, though. If you only buy the domain name (no trademarks, no business transfer, etc.), would you be considered the new owner of the entire business and have have to assume any liabilities (legal like lawsuits, etc.) from the business itself? I don't think the new owner of just a domain would have to worry as the domain is just one piece of capital in a business, sort of like selling the office equipment, etc. Am I wrong? __________________ Background Checks Top 10 Lists

09-17-2009, 01:28 PM	#21 (permalink)
owntype Senior Member Join Date: Jul 2006 Posts: 3,137	Closed @ $76,000 that's a bargain to the right buyer. (hopefully he has the source and experience to manage the business to further success) Congrats! __________________ A B C D E F G H I J K L M N O P Q R S T U V W X Y Z . C O M

09-17-2009, 01:55 PM	#22 (permalink)
sashas Senior Member Join Date: Jul 2007 Location: Jaipur, India Posts: 3,119	the profit margins on items like these isn't very high. Amazon, with all its revenue, still makes not a whole lot of profit. But then again, companies like these aren't judged on profit basis, but on revenue. If one were to sell by profit, then GM would be worth in negative numbers.

09-17-2009, 02:27 PM	#23 (permalink)
metrisoft NamePros Regular Join Date: Jun 2008 Location: Seattle Posts: 320	I talked to the now former owner of Xoxide last night. This is a legitimate business and a great opportunity for the buyer. Organic traffic to this site based on incredibly strong keyword performance is amazing. I just hope the buyer keeps it going. __________________ EntryPath Premium Domains

09-17-2009, 03:49 PM	#24 (permalink)
*Practical* Name Seller Join Date: Jul 2008 Location: NYC Posts: 1,065 Follow @dnauctions	Reposted my early statements on my blog as well as some additional info. I have modified my analysis a bit to lowball the expected annual revenue. XoXide.com - an example in traffic analysis Last edited by Practical; 09-17-2009 at 03:53 PM.

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