What Price Will This Site / Business Sell for?

[Robbie]

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]

Huge questionmarks.

 

[owntype]

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]

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]

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

Brad

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]

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]

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.

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]

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.

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]

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]

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.

 

[Premiere]

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]

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.

 

[Premiere]

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.

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]

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

 

[coltter]

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

 

[SeanPreston]

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]

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.

 

[Robbie]

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]

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?

 

[Robbie]

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