A new segment was launched on Flippa recently – Starter Sites. Following the popularity of newly created websites on their marketplace Flippa decided to better capitalize on it, by creating a whole new area for them.
In my opinion it’s a good way for new site investors to get their feet wet and enter “the game” with minimal costs.. but also minimal gains, as 99% of those sites are never going to make any revenue or pay for themselves. However the buyers could get the required experience and get a feel for how it works, so they can move on to bigger and better purchases next. And, who knows, some of these sites might even make a few bucks on adsense, over the years.
Interestingly these sites tend to sell for around the $50-200. For example EspressoSecret.com, fetched $115, while SmartYogaGuide.com is already at over 255. The sites on sale there don’t differ a lot, other than by niches and sellers. So my guess is that auction descriptions may be proportional to the selling price! Another similar site VacationDealsVille.com fetched only $59.
There are many sellers focusing exclusively on these type of websites and some have even sold hundreds of them. Apparently the demand is quite high among buyers, as new players are entering the scene, and quite a few people actually even make a living entirely out of these type of websites.
Mark D., aka TurnkeyProfit, managed to sell over 1500 such websites for a total of over 273K in 4 years. Averaging $176 per site, with the majority of his websites selling for $80, making over $50K per year after all the flippa fees.
Several other members were close, but got suspended/banned on flippa for some reason:
- Sun Shine had 1037 transactions totalling $166,548 with a surprising 84.1% positive feedback, with 83% of their listings sold.
- autopilotsites had 411 transactions totalling $41,165 before getting banned a year ago, with similar 82.6% feedback.
- 5RDesign also got banned a year ago with 587 transactions totalling $84,395 having a 90.8% feedback.
- mycompanyname got suspended after 297 transactions totalling $60,398 with a 0% (!) feedback
- fryedaddy, however, completed 555 transactions totalling $104,436 with a 88.6% feedback and is still active.
There are plenty of other more successful flippa sellers, however, who focused on starter sites at one point or another. Deana used to sell those type of sites, but then moved on to wallpaper sites with revenue, and managed to complete 909 transactions totalling an impressive $456,974.
Other notable users focusing on starter sites:
- franzium 233 transactions totalling $29,423 with 100% feedback
- Shawn M 614 transactions totalling $105,241 with 100.0% feedback
- GlenM 214 transactions totalling $30,436 with 100% feedback
- Amir Rimer 374 transactions totalling $33,769 with 100% feedback
Several others gave up on the idea realizing it’s going to take too long, and too much effort to make decent profits this way: Darren P. sold 156 sites totalling $9,680 a year ago and Potential Websites completed 151 transactions totalling $14,676 before quitting 2 years ago.
As this post shows selling starter sites have become an industry in its own right on flippa over the past few years. And many sellers are able to make a decent living out of this. However my guess is that while more sellers enter, causing the prices to drop, the demand will also slowly drop as buyers start to realize these type of websites are mostly not going to make them money or even pay off. However it’s still a good way for sellers to make some quick extra money!