Unless you’ve been living under a rock you know that Flippa is doing to the website sales market what Sedo, Afternic, and Snapnames have done to the domain sales market. They have provided a marketplace for people to buy and sell websites and with over 49 million dollars in sales so far this little service is getting bigger every day!
One data point that I can’t help but mention is the percentage of listings that are sold. Over the last three months 58% of the listings on Flippa have sold. Compare this to the under 0.4% of listings that sell on Sedo and you can understand why Flippa is such an interesting marketplace. In December Debate.org sold for $130,000 on Flippa giving clear evidence that there are buyers in the six-figure range.
Debate.org – $130,000
UpsellEquation.com – $35,000
GetFreeWebDesigns.com – $35,000
At first this may sound like a complete rip-off but remember, people aren’t buying domains here, they’re buying businesses. When I evaluate a web business I look at the traffic and revenue first, then the domain name. I’d always rather have a business with proven income than a domain with “unlimited potential” as so many Domain-sellers use in their listings.
In the case of Debate.org you will notice that absolutely no revenue is being claimed, instead the domain is selling because of its traffic, members, etc. the company itself. Just think of all the amazing domains that are parked right now, with a fully developed site they too could quickly build a following and benefit from strong organic search traffic.
2011 is the year where most of the Domainers that have been holding-out on development finally make their move. Parking is dead, we all know it, organic traffic is the only kind we can rely on 5-10 years in the future. When I look at two domains that would sell for the reg fee undeveloped but moving for $35,000 each when developed into businesses I can tell you all – the sky really is the limit.
Anyone can put a website on a domain…but can you build a business?