Comments on: Shoemoney sells affiliate site AuctionAds, but for how much?

By: Chromate

Chromate — Wed, 01 Aug 2007 12:12:25 +0000

Keiron’s absolutely right in his valuation. When people buy businesses, a huge consideration is barrier-to-entry. AuctionAds can be copied without much of a problem. Why pay millions for something you could replicate yourself for thousands? Having said that, there are a lot of foolish people out there that probably would.

$12.5 Million is a LOT of money. There’s absolutely no way AuctionAds is worth anywhere near that amount.

By: WYPOV.com » Blog Archive » Problems with auctionads.com on WYPOV.com

WYPOV.com » Blog Archive » Problems with auctionads.com on WYPOV.com — Wed, 01 Aug 2007 10:31:00 +0000

[...] from the AuctionAds website. If it is working there is no problem. I was reading this morning on http://www.here.org.uk/2007/07/shoemoney-sells-affiliate-site-auctionads-but-for-how-much.htmlthe following “Lately on various forums and blogs there has been an ever-increasing number of [...]

By: Kieron

Kieron — Wed, 01 Aug 2007 07:59:25 +0000

Look at it this way, if AuctionAds is giving away 100% of its eBay commissions back to their publishers then how much money is it making? Nothing.
So how can a company sell for $12.5 million that makes zero? Sure, the potential is there to make money but I stand by my valuation.
Remember, $500k is the max I would pay for it. However I appreciate there are people out there who would pay more, it won’t be the first overvalued site thats ever been sold will it?

By: Christoph

Christoph — Wed, 01 Aug 2007 03:50:45 +0000

You are pretty far off with your bet.

$12.5 Million Dollars - this will be a cheap price in one year and many others will slap themself for not picking up AuctionAds when it was still affordable.

By: bestoptimized

bestoptimized — Wed, 01 Aug 2007 01:10:05 +0000

You really undervalued it. The domain is probably worth more than $20,000. Sites like this aren’t sold by how much revenue they make but by how much potential they have. I doubt shoemoney would even think about selling for half a million seeing he makes millions a year. That would be chickenfeed to him. I think it sold for between 5 and 10 million. Mybloglog sold for 10 million without any revenue.

By: adventures in money making

adventures in money making — Tue, 31 Jul 2007 22:22:23 +0000

I’m sure it sold for more than $500k. I’ve seen sites with sales of $2/mo sell for $299!!!

By: Chris Guthrie

Chris Guthrie — Tue, 31 Jul 2007 22:01:39 +0000

I wasn’t going to make a comment on this post up until I read the estimated sale price - $500,000. I really think you undervalued the sale price of AuctionAds. I do agree that most of the publishers aren’t making a TON of money with it, but they are making some. I think the reason why the sale price is higher than you estimate is due to it’s ease of implementation.

You’re right, it is just like Adsense, and Adsense is really easy to use which is one reason why it’s been so successful.

By: CPA Affiliates

CPA Affiliates — Tue, 31 Jul 2007 14:43:08 +0000

I think that is a way undervalue of the over site(project) I figure at minimum 1 Mil on the high end 5 Mil… You have to think how much Bizness was going thru auctionads even 1% of that is a huge number… If they paid out 99% but I am sure they can still pay a 100% but cut a deal with ebay that if they make X in auction sales a month they get XXXXXXX…. Thats my take…

By: Chromate (Rich)

Chromate (Rich) — Mon, 30 Jul 2007 12:40:50 +0000

Thing is, Jeremy has such a huge affiliate following that the uptake was rapid. A competitor probably wouldn’t have quite such an easy ride, so a lot of the budget would probably go on promotion, rather than development. Having said that, development probably wouldn’t cost too much anyway as it’s built around the API.