Buy an Undervalued Website with Traffic & Earn your Money Back Quickly
Remember that website for sale last week?
Remember the matrixlab-examples.com website that a Her.CEO reader listed for sale last week?
Many of you were interested in purchasing the website, and a great buyer closed on the site this Wednesday.
The site had a solid monthly 18,193 last 30 days traffic, and 29 Ahrefs DA.
It was also severely under-monetized with only one revenue source, Adsense, which the valuation was based on, even though in the past the owner had made money off of teaching services and even selling a few guest posts, so it had a lot of potential.
The site ended up selling over-asking price, and both the buyer and seller were very happy with how the sale turned out.
Looking to sell your own website?
If any of you have a website you are looking to sell, you can send me an email at email@example.com and I am happy to talk more to see if there is anything I can do to help.
How do you find a good website deal?
One of the Her.CEO site readers was interested if this specific site would sell because it was priced at a multiple a bit higher than an Adsense site would generally sell at.
At first I was surprised by this question simply because the site had tons of traffic, a very solid DA and age, and was severely under-monetized.
Then I realized that this was a way I could share with you guys to identify undervalued websites so you could find sites at a great deal. Ones that you can easily increase revenue on.
Which is better, profit or traffic?
Many people value profit on a site more than traffic. Sure, profit is nice, but you have to pay a multiple on profit, not traffic. Websites in today’s market are valued at a multiple of monthly profit, not traffic, and traffic is just as valuable as profit.
Traffic is arguably more valuable than profit, since you can always monetize traffic. You can monetize it in layers too, which is what makes it so valuable.
Monetize the site in layers
You can put ads on in layers. You can put products and services on top of that. You can sell sponsorships and email sponsorships and sponsored shout-outs. You can get even more creative and add layers on top of that.
Traffic is the baseline for profit. It’s a foundation for profit. So the fact that websites are valued based on profit and not traffic gives you guys a loophole. It gives anyone a loophole to get an undervalued site.
Find a site that has a ton of traffic and low profit. Then add layers of monetization to that site to quickly improve profit.
That is one way to find and buy an undervalued site and diamond in the rough, just like the site sold in my last email arguably was.
My favorite way to bump up a site’s revenue
The site sold in the last email is a great example of a site where you can add in more monetization methods to quickly increase revenue because it already has a ton of traffic. For example:
- Adding in your own or outsourced Math tutoring or teaching services
- Adding in Math courses or ebooks, you could put your own or affiliate links
- Selling sponsored posts or links on the site, the old owner did this a bit in the past and found it successful but didn’t include this in his revenue or in the multiple since it was further in the past
- Selling banner ads to other Math teaching companies etc, since the site already has tens of thousands in traffic a month
How to quickly increase revenue on a site with traffic:
Buy an undervalued site by looking for one with lots of traffic but low profit
One of my favorite things to look for in any site I buy is, how can i increase the revenue here quickly, with the traffic we already have?
That’s why I love switching ad networks or adding in new ads to quickly increase revenue. Because it’s not a bet on if you can increase traffic with SEO or social media.
Less risk when you use the traffic you already have
It’s simply taking what you already have and squeezing more juice out of it. It’s less risky if you know the traffic you already have can be monetized in more ways or better ways than if you’re counting on scaling the traffic to the moon or making some bigger change.
You still need a long-term SEO plan
Of course, long-term, looking to scale traffic and actually grow the site is usually the best way to very significantly increase revenue over-time, but to take away the most risk, I’ve found it best to look for very high-traffic sites that are severely under-monetized.
Traffic & Attention are Valuable
The key thing to note here is if a website, or anything for that matter, has a lot of traffic and eyeballs on it, but little to no revenue, is that it is still valuable. Traffic and attention are very valuable and you can always monetize traffic.
Profit is Valuable, but so is Traffic
It is much easier to take a site with tons of traffic, and put more ads on it or different ads, or simply add in your own extra layers of monetization such as adding in your own products or services to sell on the site, and then see revenue increase significantly, than it is to take a site with little to no traffic, even if it has a high DA, and grow its traffic and revenue that way.
Find an under-valued site by looking for one with traffic and low revenue
The key point here is I’ve found from experience that a site with traffic is often just as valuable, or more valuable as a site with revenue.
The only difference is that a site with revenue will cost you more to purchase, since websites are valued at a multiple of monthly profit, not monthly traffic.
Leave a comment and let me know if you’ve ever bought a site with tons of traffic and then added more monetization methods, I’m interested to know if anyone else has and how they did it!