How Are Websites Making Money?

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Flippa has over 3 years of comprehensive data that shows how websites make money. We’ll use this to answer questions such as “what is a visit worth?” and how niche and monetization methods impact website value.

Experience level: Intermediate
Target audience: Affiliate/Publisher
Niche/vertical: Monetization

Andrew Knibbe, Operations Manager, Flippa.com

Published in: Business
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How Are Websites Making Money?

  1. 1. How Are Websites Making Money?A look at $30 Million in Website Sales Affiliate Summit West 2013 Andrew Knibbe – Operations Manager, Flippa.com
  2. 2. How Are Websites Making Money?
  3. 3. How Are Websites Making Money? • Approach • Average Site Profile • Niches • Site Types/Models • Advertising • Affiliate Programs • Platforms • Questions
  4. 4. 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
  5. 5. How Are Websites Making Money? • Approach • Average Site Profile • Niches • Site Types/Models • Advertising • Affiliate Programs • Platforms • Questions
  6. 6. 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
  7. 7. How Are Websites Making Money? • Approach • Average Site Profile • Niches • Site Types/Models • Advertising • Affiliate Programs • Platforms • Questions
  8. 8. Tier 1 Niches – 70% of Sales Volume Internet Marketing Entertainment Health & Beauty Home Internet Services Technology Hobbies Business Travel Gaming
  9. 9. Tier 1 Niches – Capital/Revenue Yield Median Monthly Revenue $- $50 $100 $150 $200 $250 $300 $350 $400 Gaming Travel Business Hobbies Technology Internet Services Home Health & Beauty Median Sales Price Entertainment Median Monthly RevenueInternet Marketing $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Median Sales Price
  10. 10. Tier 1 Niches – Traffic Yield Median Visitor Value $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 Gaming Travel Business Hobbies TechnologyInternet Services Home Median Monthly UniquesHealth & Beauty Median Visitor Value Entertainment Internet Marketing - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Median Monthly Uniques
  11. 11. Tier 1 Niches – wheretogetmovingboxes.com• Home Niche• ShareASale• PageRank 1• $69 Monthly Revenue• 301 Month Uniques• Sold for $747 (24 bids)
  12. 12. Tier 2 Niches – 24% of Sales Volume Employment & Education Electronics Finance Social Media Family News Sport Automotive
  13. 13. Tier 2 Niches – Capital/Revenue Yield Median Monthly Revenue $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Automotive Sport News Family Social Media Finance Median Sales Price Electronics Median Monthly RevenueEmployment & Education $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Median Sales Price
  14. 14. Tier 2 Niches – Traffic Yield Median Visitor Value $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 Automotive Sport News Family Social Media Finance Electronics Median Monthly UniquesEmployment & Education Median Visitor Value - 2,000 4,000 6,000 8,000 10,000 12,000 Median Monthly Uniques
  15. 15. 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)
  16. 16. How Are Websites Making Money? • Approach • Average Site Profile • Niches • Site Types/Models • Advertising • Affiliate Programs • Platforms • Questions
  17. 17. Site Type Performance Blog Ecommerce Directory Services Social Forum Marketplace Reviews
  18. 18. Site Types– Capital/Revenue Yield Median Monthly Revenue $- $100 $200 $300 $400 $500 $600 $700 $800 $900 Reviews Median Sales PriceMarketplace Median Monthly Revenue Forum Social Services DirectoryEcommerce Blog $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Median Sales Price
  19. 19. 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 Services DirectoryEcommerce Blog - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Median Monthly Uniques
  20. 20. Site Types – BestHydrationPacks.com• Review Site• Amazon Associates• PageRank 1• $24 Monthly Revenue• 870 Month Uniques• Sold for $210 (19 bids)
  21. 21. How Are Websites Making Money? • Approach • Average Site Profile • Niches • Site Types/Models • Advertising • Affiliate Programs • Platforms • Questions
  22. 22. Advertising Performance Google Adsense BuySell Ads Infolinks Chitika DoubleClick.Net Openads/OpenX
  23. 23. Ad Performance – Capital/Revenue Yield Median Monthly Revenue $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500Openads/OpenXDoubleClick.Net Chitika Infolinks BuySell Ads Median Sales PriceGoogle Adsense Median Monthly Revenue $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 Median Sales Price
  24. 24. 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.Net Chitika Infolinks BuySell Ads Median Monthly UniquesGoogle Adsense Median Visitor Value - 20,000 40,000 60,000 80,000 100,000 120,000 Median Monthly Uniques
  25. 25. Ad Performance – CrispMe.com• BuySell Ads• PageRank 3• $61 Monthly Revenue• 110,000 Month Uniques• Sold for $9,450 (55 bids)
  26. 26. How Are Websites Making Money? • Approach • Average Site Profile • Niches • Site Types/Models • Advertising • Affiliate Programs • Platforms • Questions
  27. 27. Affiliate Performance Commission Junction Amazon Associates SkimLinks Link Share CPAlead ShareASale ClickBank Affiliate Buzz
  28. 28. Aff. Performance – Capital/Revenue Yield Median Monthly Revenue $- $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 Affiliate Buzz ClickBank ShareASale CPAlead Link Share SkimLinks Amazon Associates Median Sales PriceCommission Junction Median Monthly Revenue $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 Median Sales Price
  29. 29. Affiliate Performance – Traffic Yield Median 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 Buzz ClickBank ShareASale CPAlead Link Share SkimLinks Median Monthly Uniques Amazon Associates Median Visitor ValueCommission Junction - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Median Monthly Uniques
  30. 30. Affiliate Performance – LoveTheOutdoors.com• Amazon Associates• PageRank 3• $1,200 Monthly Revenue• 118,000 Month Uniques• Sold for $37,100 (32 bids)
  31. 31. How Are Websites Making Money? • Approach • Average Site Profile • Niches • Site Types/Models • Advertising • Affiliate Programs • Platforms • Questions
  32. 32. Platform Performance WordPress Joomla! vBulletin Drupal Blogger tumblr Pligg
  33. 33. Platform – Capital/Revenue Yield Median Monthly Revenue $- $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 Pligg tumblr Blogger Drupal vBulletin Joomla! Median Sales Price Median Monthly RevenueWordPress $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 Median Sales Price
  34. 34. Platform – Traffic Yield Median Visitor Value $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 Pligg tumblr Blogger Drupal vBulletin Joomla! Median Monthly UniquesWordPress Median Visitor Value - 50,000 100,000 150,000 200,000 250,000 Median Monthly Uniques
  35. 35. Platform– 3ROMS.com• vBulletin• CPAlead• PageRank 3• $300 Monthly Revenue• 42,000 Month Uniques• Sold for $3,000 (6 bids)
  36. 36. How Are Websites Making Money? • Approach • Average Site Profile • Niches • Site Types/Models • Advertising • Affiliate Programs • Platforms • Questions
  37. 37. 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
  38. 38. 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

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