Profit Multiples on Content Sites fell to 2.7x profit in H2 2023
New Flippa Data Insights shows how content sites peaked in H1 2022 at 3.2x annual profit and has fallen since.
With all the latest google updates and AI developments, I wonder if they will get to < 2x by this year's end?
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12 comments
• Jun '24
I wonder that too . Especially as I'm embarking on a new venture that includes multiple digital touchpoints as the the assets - I'm de-emphasizing the 'content site' part of the equation and starting a Substack instead (at least for now that could change as the business evolves!). Of course that will be supplemented by a YT channel, Podcast, and social assets. But when I looked to the website/content side of things I don't feel incentivized to invest in that asset as part of the business. Times have changed!
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• Jun '24
exactly me too, I’ve not felt like investing in web/seo content since 2018 (but that will change building swwwap.com going forward)
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• Jun '24
it’s definitely rough sailing out there. That said, some good deals out there if you can underwrite sites differently. For example, is a site with no more Google traffic and diminished (but steady) traffic from Bing or alternative sources actually a safer investment than a Google juiced content site 3-5 years ago?
Also seeing lots of special situations. A Google sunk site that has a great content profile for a Pinterest or FB traffic strategy. Or, a diminished site with a significant email list that can be turned into a newsletter biz. Also seeing some that just have useful content that can be repurposed in other ways.
Also lots of mediocre one-trick pony sites that should be ignored at all costs. I’m actually finding due diligence to be much easier!
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• Jun '24
my intention with swwwap is that people can buy ‘websites’ and potentially sell the assets (list, social) separately for more money (disaggregation) and vice versa (aggregation)
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• Jun '24
great idea
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• Jun '24
I'm surprised they're still holding up that well
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• Jun '24
yeah I was surprised too, the data will be lagging though
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• Jun '24
I haven’t bought anything this year after buying quite a few sites in the last couple of years
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• Jun '24
I already see businsses even at the sub 2x
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• Jun '24
I'm a big fan of Niche Site Lady who is brilliantly pivoting with the Google algorithm changes and is documenting as she goes. It's badass!
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Richard Patey
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Profit Multiples on Content Sites fell to 2.7x profit in H2 2023
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