Flippa had another blockbuster sale yesterday as EverythingPet.com.au sold for $35,000 with 18 bidders in the auction. The website made almost no money until August of last year but still managed to bring-in a nice five-figure price tag with six months of revenue under its belt. Along with these limited stats it’s also a .com.au which most people on Flippa were a bit confused with. In the comments section the seller lists the requirements for .com.au…or so they say. If anyone in here is an expert in this area I’d be interested to know if this is all legally correct.
The owner of the site claims revenue of $8,000 with a profit of $4,000 which means they’re spending a nice chunk of change on advertising. The thing with listings like this is that you never know if how much someone is spending to generate the revenue. They could be spending $20,000 a month to generate the $8,000…you never know because nobody ever asks for or looks at the money spent – only at the money coming in.
If the site does indeed make a profit of $4,000/month then the buyer was able to walk-away with an online business for less than one year of revenue! However I think that this could have been a somewhat elaborate scheme to sell a site for more than it’s worth. I’m not saying the seller is lying across the board but without knowing how much they spent on advertising it’s really hard to know whether 3,500 unique visitors could really order $8,000 worth of pet stuff online each month. The Google rankings are excellent but something smells fishy here.
As you all know I’m a big fan of Flippa and I’m always looking at what’s selling on their site. I think that most of the time the sales are legitimate…but sometimes something doesn’t look right to me. Maybe it’s not even that something doesn’t look right, it’s just that I don’t have enough information. Spending $4,000/month to run a business in Australia that’s only been making money for six-months seems like a risky proposition for $35,000, but maybe that’s just me.
It’s still the Wild West folks and with 18 bidders this was a real auction and this did sell. Just like a domain auction nobody actually confirms that money changes hands between the buyer and the seller but Flippa is very serious about booting non-paying bidders or sellers that don’t deliver the goods. All I know is that there’s one happy guy in Australia with an extra $35,000 in his pocket, and one trusting buyer about to sink $4,000/month into a new business…oh and did I mention he has to box and ship everything himself!