Download - How Are Websites Making Money?
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How Are Websites Making Money?A look at $30 Million in Website Sales
Affiliate Summit West 2013Andrew Knibbe – Operations Manager, Flippa.com
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How Are Websites Making Money?
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How Are Websites Making Money?• Approach• Average Site Profile• Niches• Site Types/Models• Advertising• Affiliate Programs• Platforms• Questions
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Approach
• Transaction data for all established websites sold in 2011 and 2012
• Over 8,000 transactions worth almost $30 Million• Mix of seller provided and directly sourced data• Focus on median performance
2 - 4 - 4 - 4 - 6 - 6 - 6 - 12 - 16 – 40 [mean=10, median=6]• Compared changes between 2011 and 2012
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How Are Websites Making Money?• Approach• Average Site Profile• Niches• Site Types/Models• Advertising• Affiliate Programs• Platforms• Questions
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Average Site Profile in 2012
The Baseline• Monthly Revenue: $133 12%• Monthly Uniques: 2,097 38%• Monthly Revenue per Unique: $0.04 15%• Sale Price: $493 1%• Sale Multiple: 8 x monthly revenue 21%• Built on a standard CMS• Single Monetization Method
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How Are Websites Making Money?• Approach• Average Site Profile• Niches• Site Types/Models• Advertising• Affiliate Programs• Platforms• Questions
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Tier 1 Niches – 70% of Sales Volume
Internet MarketingEntertainmentHealth & BeautyHomeInternet ServicesTechnologyHobbiesBusinessTravelGaming
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Tier 1 Niches – Capital/Revenue Yield
Internet Marketing
Entertainment
Health & Beauty
Home
Internet Services
Technology
Hobbies
Business
Travel
Gaming
$- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600
$- $50 $100 $150 $200 $250 $300 $350 $400
Series4 Series1
Median Sales Price
Median Monthly Revenue
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Tier 1 Niches – Traffic Yield
Internet Marketing
Entertainment
Health & Beauty
Home
Internet Services
Technology
Hobbies
Business
Travel
Gaming
- 1,000 2,000 3,000 4,000 5,000 6,000 7,000
$0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16
Series3 Series2
Median Monthly Uniques
Median Visitor Value
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Tier 1 Niches – wheretogetmovingboxes.com
• Home Niche
• ShareASale
• PageRank 1
• $69 Monthly Revenue
• 301 Month Uniques
• Sold for $747 (24 bids)
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Tier 2 Niches – 24% of Sales Volume
Employment & EducationElectronicsFinanceSocial MediaFamilyNewsSportAutomotive
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Tier 2 Niches – Capital/Revenue Yield
Employment & Education
Electronics
Finance
Social Media
Family
News
Sport
Automotive
$- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600
$- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500
Series4 Series1
Median Sales Price
Median Monthly Revenue
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Tier 2 Niches – Traffic Yield
Employment & Ed-ucation
Electronics
Finance
Social Media
Family
News
Sport
Automotive
- 2,000 4,000 6,000 8,000 10,000 12,000
$0.00 $0.05 $0.10 $0.15 $0.20 $0.25
Series3 Series2
Median Monthly Uniques
Median Visitor Value
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Tier 2 Niches – iKidApps.com
• Family Niche
• Link Share (Apple)
• PageRank 4
• $1,300 Monthly Revenue
• 19,000 Month Uniques
• Sold for $19,100 (35 bids)
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How Are Websites Making Money?• Approach• Average Site Profile• Niches• Site Types/Models• Advertising• Affiliate Programs• Platforms• Questions
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Site Type Performance
BlogEcommerceDirectoryServicesSocialForumMarketplaceReviews
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Site Types– Capital/Revenue Yield
Blog
Ecommerce
Directory
Services
Social
Forum
Marketplace
Reviews
$- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000
$- $100 $200 $300 $400 $500 $600 $700 $800 $900
Series4 Series1
Median Sales Price
Median Monthly Revenue
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Site Types – Traffic Yield
Blog
Ecommerce
Directory
Services
Social
Forum
Marketplace
Reviews
- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
$0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80
Series3 Series2
Median Monthly Uniques
Median Visitor Value
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Site Types – BestHydrationPacks.com
• Review Site
• Amazon Associates
• PageRank 1
• $24 Monthly Revenue
• 870 Month Uniques
• Sold for $210 (19 bids)
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How Are Websites Making Money?• Approach• Average Site Profile• Niches• Site Types/Models• Advertising• Affiliate Programs• Platforms• Questions
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Advertising Performance
Google AdsenseBuySell AdsInfolinksChitikaDoubleClick.NetOpenads/OpenX
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Ad Performance – Capital/Revenue Yield
Google Adsense
BuySell Ads
Infolinks
Chitika
DoubleClick.Net
Openads/OpenX
$- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000
$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500
Series4 Series1
Median Sales Price
Median Monthly Revenue
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Ad Performance – Traffic Yield
Google Adsense
BuySell Ads
Infolinks
Chitika
DoubleClick.Net
Openads/OpenX
- 20,000 40,000 60,000 80,000 100,000 120,000
$0.00 $0.01 $0.02 $0.03 $0.04 $0.05 $0.06 $0.07 $0.08 $0.09 $0.10
Series3 Series2
Median Monthly Uniques
Median Visitor Value
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Ad Performance – CrispMe.com
• BuySell Ads
• PageRank 3
• $61 Monthly Revenue
• 110,000 Month Uniques
• Sold for $9,450 (55 bids)
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How Are Websites Making Money?• Approach• Average Site Profile• Niches• Site Types/Models• Advertising• Affiliate Programs• Platforms• Questions
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Affiliate Performance
Commission JunctionAmazon AssociatesSkimLinksLink ShareCPAleadShareASaleClickBankAffiliate Buzz
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Aff. Performance – Capital/Revenue Yield
Commission Junction
Amazon Associates
SkimLinks
Link Share
CPAlead
ShareASale
ClickBank
Affiliate Buzz
$- $500 $1,000 $1,500 $2,000 $2,500 $3,000
$- $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000
Series4 Series1
Median Sales Price
Median Monthly Revenue
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Affiliate Performance – Traffic Yield
Commission Junction
Amazon Associates
SkimLinks
Link Share
CPAlead
ShareASale
ClickBank
Affiliate Buzz
- 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
$0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20
Series3 Series2
Median Monthly Uniques
Median Visitor Value
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Affiliate Performance – LoveTheOutdoors.com
• Amazon Associates
• PageRank 3
• $1,200 Monthly Revenue
• 118,000 Month Uniques
• Sold for $37,100 (32 bids)
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How Are Websites Making Money?• Approach• Average Site Profile• Niches• Site Types/Models• Advertising• Affiliate Programs• Platforms• Questions
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Platform Performance
WordPressJoomla!vBulletinDrupalBloggertumblrPligg
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Platform – Capital/Revenue Yield
WordPress
Joomla!
vBulletin
Drupal
Blogger
tumblr
Pligg
$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000
$- $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000
Series4 Series1
Median Sales Price
Median Monthly Revenue
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Platform – Traffic Yield
WordPress
Joomla!
vBulletin
Drupal
Blogger
tumblr
Pligg
- 50,000 100,000 150,000 200,000 250,000
$0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18
Series3 Series2
Median Monthly Uniques
Median Visitor Value
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Platform– 3ROMS.com
• vBulletin
• CPAlead
• PageRank 3
• $300 Monthly Revenue
• 42,000 Month Uniques
• Sold for $3,000 (6 bids)
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How Are Websites Making Money?• Approach• Average Site Profile• Niches• Site Types/Models• Advertising• Affiliate Programs• Platforms• Questions
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Questions – Take-Outs• Website performance down in 2012 compared to 2011• Offset by more effective monetization in 2012• Median sale prices have held steady• Not all Niches were created equal: Finance, Business,
Home, Entertainment/Gaming and Family niches tend to outperform the market
• Review sites are seeing a performance comeback• Ad revenue is generally in decline• Affiliate revenue is generally growing• Wordpress growth in unstoppable. Keep an eye on Tumblr
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Questions
How Are Websites Making Money?Contact Flippa• Flippa.com/blog• facebook.com/flippamarketplace• @flippa• [email protected]
Contact Andrew• [email protected]• linkedin.com/in/andrewknibbe• @andrewknibbe