How Do Websites Make Money?

Download How Do Websites Make Money?

Post on 15-May-2015

65.664 views

Category:

Documents

1 download

Embed Size (px)

DESCRIPTION

What's better than owning websites? Owning money-making websites! Flippa's operations manager, Andrew Knibbe, gathered 18 months of data to find out what kinds of sites make the most money.

TRANSCRIPT

<ul><li> 1. How Are Websites Making Money?A look at $30 Million in Website Sales Flippa.com User Meetup Feb 2013 Andrew Knibbe Operations Manager, Flippa.com</li></ul> <p> 2. How Are Websites Making Money? Approach Average Site Profile Niches Site Types/Models Advertising Affiliate Programs Platforms Questions 3. Approach Transaction data for all established websites sold in2011 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 4. How Are Websites Making Money? Approach Average Site Profile Niches Site Types/Models Advertising Affiliate Programs Platforms Questions 5. Average Site Profile in 2012The Baseline Monthly Revenue: $133 12% Monthly Uniques: 2,097 38% Monthly Revenue per Unique: $0.04 15% Sale Price: $493 1% Sale Multiple: 8 x monthly revenue 21% Built on a standard CMS Single Monetization Method 6. How Are Websites Making Money? Approach Average Site Profile Niches Site Types/Models Advertising Affiliate Programs Platforms Questions 7. Tier 1 Niches 70% of Sales Volume Internet Marketing Entertainment Health &amp; Beauty Home Internet Services Technology Hobbies Business Travel Gaming 8. Tier 1 Niches Call Outs Gaming and Business sites are good earners These + Hobbies and Tech tend to beat themarket when selling Gaming/Tech have high traffic but low user yields Business sites have best revenue yielding traffic Internet Marketing sites tend to be short-termearners (ie low sale prices) Gaming site capital/revenue yields GREW in 2012 9. Tier 1 Niches Capital/Revenue YieldMedian Monthly Revenue$- $50$100 $150$200$250 $300$350$400 GamingTravelBusinessHobbies TechnologyInternet ServicesHomeHealth &amp; Beauty Median Sales PriceEntertainmentMedian Monthly RevenueInternet Marketing$- $200 $400 $600$800$1,000 $1,200 $1,400 $1,600Median Sales Price 10. Tier 1 Niches Traffic YieldMedian Visitor Value$0.00 $0.02 $0.04 $0.06$0.08 $0.10 $0.12 $0.14$0.16 GamingTravelBusinessHobbies TechnologyInternet ServicesHome Median Monthly UniquesHealth &amp; Beauty Median Visitor ValueEntertainment InternetMarketing- 1,000 2,000 3,0004,000 5,000 6,0007,000Median Monthly Uniques 11. Tier 1 Niches wheretogetmovingboxes.com Home Niche ShareASale PageRank 1 $69 Monthly Revenue 301 Month Uniques Sold for $747 (24 bids) 12. Tier 2 Niches 24% of Sales VolumeEmployment &amp; EducationElectronicsFinanceSocial MediaFamilyNewsSportAutomotive 13. Tier 2 Niches Call Outs Family, Social Media and Finance are strong earners:all grew in 2012 Automotive, News, Family and Employment beat themarket wrt sell price: all up 20% in 2012 News sites tend to sell for more but need A LOT oftraffic to earn revenue Finance earns 20 cents per unique: double in 2012 on2011 Sport and Family not massive in raw traffic but gettingover 7 cents per unique Social Media sites had strong financial and trafficperformance: fad or trend? 14. Tier 2 Niches Capital/Revenue YieldMedian Monthly Revenue$- $50$100$150 $200 $250$300$350$400 $450$500 Automotive Sport NewsFamily Social Media FinanceMedian Sales PriceElectronicsMedian Monthly RevenueEmployment &amp; Education$- $200$400$600 $800 $1,000$1,200 $1,400 $1,600 Median Sales Price 15. Tier 2 Niches Traffic YieldMedian Visitor Value$0.00 $0.05 $0.10$0.15$0.20 $0.25 Automotive Sport NewsFamily Social Media FinanceElectronics Median Monthly UniquesEmployment &amp; Education Median Visitor Value- 2,000 4,0006,000 8,00010,00012,000 Median Monthly Uniques 16. Tier 2 Niches iKidApps.com Family Niche Link Share (Apple) PageRank 4 $1,300 Monthly Revenue 19,000 Month Uniques Sold for $19,100 (35 bids) 17. How Are Websites Making Money? Approach Average Site Profile Niches Site Types/Models Advertising Affiliate Programs Platforms Questions 18. Site Type PerformanceBlogEcommerceDirectoryServicesSocialForumMarketplaceReviews 19. Site Type Call Outs Forums still beat the market - despite strongsell price decline in 2012 Review sites earn roughly as much as a blog -but sell for double! Review sites saw a massive increase in trafficin 2012 Forums, Directories and Social sites struggleto convert traffic into revenue (Forums down60% on 2011) 20. Site Types Capital/Revenue Yield Median Monthly Revenue$-$100 $200$300$400$500$600$700$800$900 ReviewsMedian Sales PriceMarketplace Median Monthly Revenue Forum Social ServicesDirectoryEcommerce Blog$- $200$400 $600$800$1,000$1,200$1,400$1,600$1,800 $2,000 Median Sales Price 21. Site Types Traffic Yield Median Visitor Value$0.00 $0.10 $0.20 $0.30 $0.40$0.50 $0.60 $0.70$0.80 Reviews Median Monthly Uniques Median Visitor ValueMarketplace Forum Social ServicesDirectoryEcommerce Blog- 1,000 2,000 3,000 4,0005,000 6,000 7,0008,000Median Monthly Uniques 22. Site Types BestHydrationPacks.com Review Site Amazon Associates PageRank 1 $24 Monthly Revenue 870 Month Uniques Sold for $210 (19 bids) 23. How Are Websites Making Money? Approach Average Site Profile Niches Site Types/Models Advertising Affiliate Programs Platforms Questions 24. Advertising PerformanceGoogle AdsenseBuySell AdsInfolinksChitikaDoubleClick.NetOpenads/OpenX 25. Ad Performance Call Outs 20% drop in revenue in 2012 Traffic yield tends to be half of what themarket is getting Plus, all yields dropped in 2012 (despite totalmarket yield being up 15%) BuySellAds sites sold for good prices based onhaving more traffic 26. Ad Performance Capital/Revenue Yield Median Monthly Revenue $- $500 $1,000$1,500 $2,000$2,500 $3,000 $3,500Openads/OpenXDoubleClick.NetChitika InfolinksBuySell Ads Median Sales PriceGoogle Adsense Median Monthly Revenue $- $2,000$4,000$6,000 $8,000$10,000$12,000Median Sales Price 27. Ad Performance Traffic Yield Median Visitor Value $0.00 $0.01 $0.02 $0.03 $0.04$0.05 $0.06 $0.07 $0.08$0.09$0.10Openads/OpenXDoubleClick.NetChitika InfolinksBuySell AdsMedian Monthly UniquesGoogle AdsenseMedian Visitor Value - 20,000 40,000 60,000 80,000100,000120,000 Median Monthly Uniques 28. Ad Performance CrispMe.com BuySell Ads PageRank 3 $61 Monthly Revenue 110,000 Month Uniques Sold for $9,450 (55 bids) 29. How Are Websites Making Money? Approach Average Site Profile Niches Site Types/Models Advertising Affiliate Programs Platforms Questions 30. Affiliate PerformanceCommission JunctionAmazon AssociatesSkimLinksLink ShareCPAleadShareASaleClickBankAffiliate Buzz 31. Affiliate Performance Call Outs Commission Junction and Link Share areyielding especially strong revenues: both up in2012 largely due to being 50% better at visitorrevenue generation (over 8 cents/unique) Amazon Associates not a strong performerand flat in 2012 32. Aff. Performance Capital/Revenue Yield Median Monthly Revenue$- $100$200 $300$400 $500 $600$700 $800$900 $1,000 Affiliate BuzzClickBankShareASaleCPAlead Link ShareSkimLinks Amazon Associates Median Sales PriceCommission JunctionMedian Monthly Revenue$-$500 $1,000 $1,500 $2,000$2,500 $3,000 Median Sales Price 33. Affiliate Performance Traffic YieldMedian Visitor Value$0.00 $0.02$0.04 $0.06$0.08$0.10 $0.12$0.14$0.16$0.18 $0.20 Affiliate BuzzClickBankShareASaleCPAlead Link ShareSkimLinks Median Monthly Uniques Amazon Associates Median Visitor ValueCommission Junction-2,000 4,000 6,000 8,000 10,000 12,00014,00016,000 Median Monthly Uniques 34. Affiliate Performance LoveTheOutdoors.com Amazon Associates PageRank 3 $1,200 Monthly Revenue 118,000 Month Uniques Sold for $37,100 (32 bids) 35. How Are Websites Making Money? Approach Average Site Profile Niches Site Types/Models Advertising Affiliate Programs Platforms Questions 36. Platform Performance WordPress Joomla! vBulletin Drupal Blogger tumblr Pligg 37. Platform Performance Call Outs Popular platform = strong sell price Wordpress up 8% in CMS share in 2012 Joomla still powering well performing sites Drupal and Blogger are equal wrt medianrevenue &amp; traffic BUT Drupal doubled in 2012while Blogger halved Tumblr went from zero to hero in 2012 38. How Are Websites Making Money? Approach Average Site Profile Niches Site Types/Models Advertising Affiliate Programs Platforms Questions 39. 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 andFamily 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 40. Questions How Are Websites Making Money?Contact Flippa Flippa.com/blog facebook.com/flippamarketplace @flippa support@flippa.comContact Andrew andrew.knibbe@flippa.com linkedin.com/in/andrewknibbe @andrewknibbe</p>