Welcome to the Nano Flips Issue #6!
Pulling $25k from an auto parts website.
Another amazing site here, just had to do some real digging to find it!
Today we are going to look at a website that should is currently listed at $10k, but it would be worth paying more for it
At this price, it’s fair, and a decent buy and hold. But there are some MAJOR opportunities with it, quick easy wins that will increase its value pretty quickly.
I have recorded a youtube video to go with it – so make sure to watch the video all the way through (and like and subscribe)
I will go into more detail below
If the video doesn’t work above – it is here
You can check out the listing for the site here
They make their money from Google Adsense. Or “display ads.” Which is the lowest hanging fruit of monetization.
Let’s look at several reasons that this site might be a decent buy, that could be perfect for flipping and or holding:
- It has had stable traffic over the last 12+ months
- It has a niche focus – auto parts!
- It’s getting most of its traffic from Google search
- It has a DA of 44
- Traffic is coming from tier one countries (mostly US)
- The niche is evergreen (not seasonal)
- Great opportunity to monetize better
- Great opportunity to grow traffic
- No email list yet
Now, let’s take a look at the things we don’t like about it.
- It’s in a very specific niche, that becomes easier to write about if you love it
- Its traffic is mostly coming from one source
- Seller is a Flipper, so they have squeezed some of the juice out of the site already
There are several things we can do here to make it more valuable. Let’s take a look.
- We are going to try and take this site to a new ad network! Sadly we are just under the threshold needed to qualify for a premium network like an Ezoic. So once we grow this site to over 10k pageviews a month, we are going to try and move it to Ezoic. This will likely result in a 10-50% increase in revenue. Let’s assume 25% to be safe. AND let’s assume it takes us 6 months to get it there.
- Do some on-page SEO and a bit of link building! Lots and lots of opportunities in the car parts space, there is almost an unlimited amount of content and buyer keywords to write about here. With some basic work, let’s assume we can improve traffic. It might double or triple but on the SUPER SAFE SIDE. Let’s just assume that at the end of the year we can add 25% to the monthly traffic.
- Create a lead magnet and newsletter! 5k UNIQUES A MONTH. You guys let’s assume you can grab a small portion of that, 2.5%. We are looking at 125 new subs a month…or a very solid 1,500 at the end of the year (if we don’t grow). This will become super useful for selling sponsored blasts AND sending traffic back to the site.
- Add affiliate links to the site for car insurance and car parts: I’m going to try and guess how much you could make from an auto parts affiliate program. It’s going to be out of thin air, but let’s say you cut used the program from Advanced Auto Parts. And you made $4 per article, per month, and your ad 5 articles a month here about parts. Let’s also assume, we convert 1% of visitors into a lead for an auto insurance phone call. (see video)
- Sell Email Sponsorship – So this is bad AND good. I don’t think you will be able to sell sponsorship YET. BUT after a year, this will be part of the upside and reason you can sell it, let the buyer know what an amazing opportunity it will be once there are a few thousand subscribers. In the meantime, on a weekly basis, mail them a round-up of the new content you are putting out. This will help you with the sale
- Sell Guest Posts! – Ok you aren’t going to make much here, but we need good fresh content for the site anyway. You are going to maybe make $100 a month here selling 1 every week EASILY. Use the money to offset some of your costs. You are going to be adding 4-5 non-paid articles monthly anyway.
1. Well first off the site was making $426 p/mo when we bought it in display ads (Adsense). Let’s assume we do the things we discussed above. The optimization to increase ad RPM by 25%, we only get to do that 6 months in when we are at 10k pageviews a month. To keep it simple, we can pretend that ad revenue stays the same for the first 6 months, and after that, hits roughly $650 a month.
2. We now have some affiliate programs running on new content that we are adding to the site weekly. We are using SUPER conservative numbers here guys, and going to assume that we add 5 a month and earn an average of $4 from each of them. So we are adding $20 a month to revenue.
3. We are selling sponsored posts. Nothing crazy, but we can easily grab another $100 a month here. (Id say $300+ is actually doable)
At the end of 12 months our new monthly income of….$990+
Over the next 12 months, we earned $9216.00+
You paid $10000, so your cash on cash return is 92.16%
We now have a site that we are going to sell for 3x yearly net rev OR $27,648
When you add those together and subtract costs, the net profit in 12 months is…….
Not bad right? This probably could be done in 1-2 hours a week. If you want to hold this for 2 years and keep up the work? You would make A LOT MORE. MORE AROUND $50-75K, but $25k for 100 or so hours of work isn’t the end of the world ha. These numbers are conservative, if you want, subtract another $200 from your total for hosting and Yoast the SEO plugin.
Also, we could get MUCH more aggressive on the content creation and SEO and really really knock this out of the park.
Well, that’s it!
That’s it for issue #6 of Nano Flips. Maybe this site is for you, maybe it’s not.
As always! I’m NOT telling you to go buy this website. What’s important is the framework and thinking that comes from this, so that you can apply these for your own sites and acquisitions.
Thanks from the Nano Flips team
Also would love your support if you want to subscribe to the new Youtube Channel!