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Today, we look at a coffee website that just hit the market. It’s only a few days old, and has some deceiving looks, but this is a good Flippa listing.
It’s hard to overstate the importance of coffee in society.
Maybe it’s because it’s an addictive stimulant. Maybe it’s because it helps us get through our addiction to work. Or maybe it’s just because it’s delicious, warm, and comforting. Whatever, the reason, humans today are having an absolute love affair with coffee (myself included).
Search interest over the past 15 years has doubled worldwide:
This interest has been led by the United States, the UK, and especially Australia/New Zealand, who has the best coffee in the entire world. (Sorry to be a coffee snob! But it’s true!)
Furthermore, there is a micro-trend forming around home-brewed coffee. More people are eschewing the expensive habit of buying coffee each day, and instead choosing to brew at home.
Exploding Topics tells a similar story. Here’s the 10-year chart for coffeemaker, again showing strong triple-digit growth over the last decade, with predictable spikes around the holidays.
It’s essentially becoming an evergreen topic that still maintains fantastic growth. What’s not to love?
What’s the site all about?
- The Coffee Concierge is a review site for coffee & coffee equipment. It helps people brew better coffee at home.
- Aimed at those with questions about beans, blends, equipment and techniques, the site has a basic but approachable design, and down-to-earth slogan: “Discover great coffee, the best brewing equipment, and other fun coffee content (without the snobbery)!”
- The site is nearly a decade old, and is a fairly well-architected. The owner is an SEM expert, and the content is honest and high quality.
- Organic traffic has fallen, but shows signs of stabilization, and still accounts for 80% of traffic.
- The site earned $1,761 over the last 12 months, and while it is not currently profitable, it easily could be. The P&L is full of office supplies and contract work which isn’t at all required to keep the lights on.
- The starting price is $3,500, representing a 2.0x multiple on gross profit (more on that later)
- Gross profit/month: $147
- Pageviews/month: 11,123
- Age: 8 years
Strengths, weaknesses, and opportunities
- Aged site. Built up over 9 years.
- Pretty good keyword rankings. The site ranks for 615 terms in the top 10, including many terms related to drip coffee makers.
- Solid organic traffic. Organic makes up 80% of site traffic. Traffic is bouncy, and had a 2-year peak at this time last year, so the Google Analytics graph on the listing page looks worse than it actually is.
- Mailing list and lead gen. Includes email list with 1,700 subscribers, and the site employs some rather intelligently done marketing tactics. For example, when users go to any post within the coffee grinder category, they get hit with an exit intent popup specific to coffee grinders! It sounds obvious, but many sites don’t do this. (Which is too bad, because this is the right way to do it.)
- Not profitable. This will scare some folks off, but it isn’t really a big deal. The P&L statement shows large expenses in contractors, tools, and software. But this is mainly due to a half-baked site redesign which the owner started, but never completed. The new owner doesn’t have to inherit these costs, and could probably keep the site running for the cost of hosting ($10-$15/month). Still, the lack of profitability does make figuring out the value a bit tougher.
- Strong competition. The coffee niche has attracted some strong sites the past half decade, and for good reason. Sites like Coffee Review, Coffee Geek, and Bean Hunter are much stronger, and will be difficult to compete against.
- Start running ads. The site isn’t running any ads. Based on traffic, I’d estimate running ads could bring in an extra $1,000/year without harming UX too much.
- Accept sponsored post requests. The owner also gets “several emails a day” asking for paid link submissions and sponsored posts, and ignores them all. You’ll want to confirm the amount received with the seller, because sponsored content can be a huge money-maker.
- Cut back on expensive software. The owner is using SEMrush and ConvertKit — two tools I clearly love and use myself, but tools that are expensive and not necessary to run the site.
Inferred Value: [Insiders only]
Since there are so many unnecessary costs with this site, I have based the Inferred Value on a net profit of $130/month. This net profit estimate assumes the new owner will not inheriting the unnecessary high costs employed by the current owner.
The Inferred value for this site is [Insiders only]
EPMU is a site’s monetization efficiency. It tells you how much a site earns per visitor. A site with good EPMU means the site is efficiently converting eyeballs into revenue. A site with bad EPMU means the site is not efficiently turning eyeballs into revenue. Learn more.
> This site has an EPMU of $20.16, about half the benchmark median of $38.06
MEPR is a proprietary Alternative Assets metric. It stands for the Monetization Efficiency to Price Ratio. A site with good MEPR means the site is well-priced, given how effectively it turns eyeballs into revenue. MEPR is an even stronger metric than the multiple or EPMU, because it shows you the impact that an increase in traffic would have on revenue. Learn more.
> At the Inferred Value, the MEPR is 6.7, close to the benchmark median of 13
Age, Authority, and Backlinks
With content sites, authority and backlinks are tremendously important measure of strength.
> This site is well-aged and has good authority, with pretty good backlinks and SEO.
PTFU is the cost per true, free user. It is a measure of how much you are paying for the site’s most valuable users. It’s a good way to measure the value of a site based on its traffic, and an excellent barometer for sites which have high quality traffic, but suboptimal earnings. A site with low PTFU means the buyer is acquiring high quality traffic for a lower price than expected. Learn more.
Organic Traffic Stability and Strength
Organic traffic is like gold. This measures how strong, influential, and stable the flow of organic traffic is to the site.
Revenue Stability & Diversity
How many different sources of revenue the site has, and how stable or bouncy it is.
How much has this asset grown over the last twelve months.
This measure is relative to all other categories.
Social Presence & Email
Includes Facebook, Twitter, Instagram, Pinterest, YouTube, and TikTok followers, as well as the email list size & activity.
How strong and valuable a site is based on the domain alone.
Maintenance and Upkeep
This measures how heavy the time & cost requirements are for the site.
Engagement is comprised of engagement rate, bounce rate, time spent on site, pages per visit, return visitors, and loyalty.
Sites that fly under-the radar have less interest & activity, and are therefore easier to negotiate and purchase.