Women’s Health and Beauty Website - Over $300K profit in 1 year - Domain Magnate

Women’s Health and Beauty Website – Over $300K profit in 1 year

We’ve acquired in July 2019 for $201.8K from a seller who we’ve previously done some deals with. It was a content website with dozens of articles covering different beauty and health related topics and hosting reviews of different products on amazon. 

At the time of acquisition it had a shaky history, with good numbers, but rapidly declining traffic and revenue, so we deemed this to be a very high risk acquisition, which was accounted for in the price.

The business involved a lot of high-risk SEO techniques and a large number of PBNs and paid links.

After the acquisition, our immediate plan was to stop the declining rankings and traffic, and we’ve set out to do that by inspecting all the top traffic pages and optimizing them via on-page SEO improvements, taking into account heavy keyword cannibalization and TF-IDF analysis our senior SEO manager Josh performed on the site.

Over the first couple of months, we’ve managed to edit and update most pages and disavow, remove and replace most of the lower quality links and this successfully reversed the traffic trend.

Next, we’ve focused on increasing social presence by activating and growing the different social accounts for the business to increase its value and reduce SEO risk. We’ve also conducted some paid Facebook campaigns which helped us improve brand recognition and allowed us to experiment with more monetization options.

We’ve increased revenue by diversifying monetization through preparing a media kit and reaching out to potential direct advertisers to get higher value ad campaigns. We’ve also gotten it approved for a premium ad network Mediavine, securing an extra sizable source of income and found other affiliate programs and products to promote, negotiating higher commission rates.

To increase the value of the business we’ve also combined it with other websites in the same niche that had a sizable social following, but lower revenues. This allowed us to present higher overall metrics to potential advertisers to get better-paying campaigns.

Meanwhile, we’ve conducted a massive SEO campaign, rewriting, optimizing nearly all the articles, building high-quality backlinks, removing the older lower quality, riskier backlinks, and carrying out a wide range of on-page optimizations.

Through this continuous effort, we’ve managed to grow the business to over $20K per month in revenue consistently in late 2019 early 2020. At that time it was valued at around $600K and we had further plans to get to $1M value before reselling, but that’s when some troubles started mounting.

Google algorithm update affected it negatively and the site lost around 20-25% of traffic, due to Google limiting the number of featured snippets, and first place rankings a site could get. Later Amazon announced that they would be reducing the commission rates from April 21, and we lost a substantial amount of revenue due to that.

As if that wasn’t enough, the COVID-19 pandemic started around that time, and the global spendings on beauty products reduced, as people were spending more time indoors, so our sales continued to drop.

Following this series of unfortunate coincidences, we’ve decided it’s time to sell the business. Having generated over $200K in revenue in total, we sold it for $340K in July 2020:

Confidential listing

In the end, despite this series of misfortunes that affected the business in a row, we were able to generate over $300K in profit (more than 150% return) in 1 year of holding the business.

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Subscribe to get the latest deals and tips for buyers