SitePoint

Questions to the Seller

1. Posted date:

   Thu, 14 Aug 2008 21:20:23 GMT

   Actions:

   Comment ID:

   #1

   We're willing to show anything you want to see that doesn't harm our customers security or our businesses security. Please ask any questions you may have.

   Also in the walk through video I think we only mentioned how much revenue passed through our new merchant account and not from back when we had paypal. The number is just over $48,000 and we have a spreadsheet showing every order and customer.

   

   Posted by:

   MpyreDzirez (100%) (seller)

   Private Message:

   Message me

2. Posted date:

   Fri, 15 Aug 2008 01:53:01 GMT

   Actions:

   Comment ID:

   #2

   So you are flipping a flipping site? Has the market reached it's peak or something? Seems kind of comical.

   On a serious note, will you be signing a non-compete? You may have already mentioned this, but what is the recurring revenue from memberships currently?

   

   Posted by:

   Terracrest (0%)

   Private Message:

   Message me

3. Posted date:

   Fri, 15 Aug 2008 02:52:14 GMT

   Actions:

   Comment ID:

   #3

   Hi Terracrest,

   It is a little funny to be flipping a site about flipping
   but there is no other reason for me selling other then I
   just suck at running things long term.

   That's why I'm a site flipper...

   To answer your questions about the current recurring memberships...

   We currently have about $5,000 in recurring revenue but remember
   thats not monthly thats quarterly and yearly. We moved to quarterly
   and annually payments after finding monthly payments to be too
   much of a customer support headache.

   Also once we moved to quarterly and yearly we weren't seeing cancelations
   (its almost at the rebill time now for the quarterly people). Plus with
   our retention rates (they were horrible) we now get more money per membership
   by getting the $97 upfront for the quarterly membership.

   If the new owner were to install a system that drip fed the content to the
   members they would have better retention rates. Currently new members get
   access to ALL the whole years worth of lessons right away.

   Yes, I will be willing to sign some form of a non-compete. I'm not looking
   to pull any tricks on the new owner - but I don't want to sign something that
   never lets me talk about website flipping again. So as long as the terms are
   right then yeah I'll sign a non-compete.

   For example in the book I am writing a chapter of it was planned to be about
   website flipping and promoting SiteFlipAcademy - but I wouldn't have a specific
   website flipping product.

   Good questions and thank you for asking...

   Go Bigger,
   Justin Brooke

   

   Posted by:

   MpyreDzirez (100%) (seller)

   Private Message:

   Message me

4. Posted date:

   Fri, 15 Aug 2008 06:43:35 GMT

   Actions:

   Comment ID:

   #4

   Justin. About once a month there seems to be a new flipping site arrive on sitepoint.. It makes me wonder if these things just drop away after the list marketing is all done and dusted. I guess I am just looking for what gives your site some longevity, a point of difference if you like? How exactly are you generating the traffic and how sustainable is it? Can you prove the cost base for this traffic? Revenue is easy on the net, profit is a different story.

   What is the next project your working on? I'm interested to know why you would give up 6k per month?

   

   Posted by:

   moreclicks (0%)

   Private Message:

   Message me

5. Posted date:

   Fri, 15 Aug 2008 07:26:19 GMT

   Actions:

   Comment ID:

   #5

   Hi,

   Please expand on the non-compete. What is your new e-book about? How can we be sure your book is not competing with the site without any concrete details?

   Thanks.

   

   Posted by:

   wiredup (0%)

   Private Message:

   Message me

6. Posted date:

   Fri, 15 Aug 2008 07:59:35 GMT

   Actions:

   Comment ID:

   #6

   How much work per day is needed on the project?

   

   Posted by:

   nicholasp (60%)

   Private Message:

   Message me

7. Posted date:

   Fri, 15 Aug 2008 08:24:22 GMT

   Actions:

   Comment ID:

   #7

   What is the % conversion from initial purchasers to membership? What is the % of conversions to the home study course? Is the home study course downloadable or is it in physical disk format. Do we get full rights to the home sudy course too?

   

   Posted by:

   nicholasp (60%)

   Private Message:

   Message me

8. Posted date:

   Fri, 15 Aug 2008 09:13:01 GMT

   Actions:

   Comment ID:

   #8

   Ok wow lots of questions...
   ----------------------------------------------------------------------------
   @moreclicks - Most of the other flipping sites are small timers
   with just an ebook and no real product funnel. That's why I am
   able to watch them come and go.

   Point of difference: product funnel, membership site, home study course, and i'm way cooler! ;-)

   As for profit and traffic - we answer that in the listing. We have
   more seo rankings and more affiliates. Profit is about $35k after
   refunds and expenses.

   I'm not worried about the $6k because my next project involves a
   network of membership sites that will bring in $30k month within
   the first 3 months.
   ----------------------------------------------------------------------------

   @wiredup It's an offline book about the life of someone who makes
   their money from home using the internet. It'll teach some basics
   but mostly about the benefits of the lifestyle and how to get the
   lifestyle. I plan on talking about website flipping in one of the
   chapters and sending readers to join SiteFlipAcademy (as an affiliate).

   I'll sign a non-compete that says I can't put out a pure website
   flipping information product. But I don't want to not be able to
   talk about it at the events I speak at, in my book, or as part
   of my work from home coaching program.

   I would be the new owners best affiliate - not looking to try and
   play any games or do anything shady.
   -------------------------------------------------------------------------------

   @nicholasp you'll need at least 10 hours per week unless you know
   how to outsource the customer support. Like I said in the listing
   I don't mind staying active inside the site to help answer questions.

   Conversions in the funnel are 1 out of 4 usually buy the 1 click
   upsell and 1 out of 3 of those usually also buy the membership.

   However, we have affiliates that promote just the membership also
   and have several contacts that want to make the SiteflipAcademy
   membership an upsell to their ebook. I'll help the buyer set those up.

   The home study course is pretty new only about 3 weeks since creation
   so the conversion numbers aren't solid. We've seen 3% and 6% on the
   two times we did sell it so far though. It is a physical course and
   costs $24 per unit to create and ship ($973 profit per unit). Yes
   you get full rights to it. - Everything is yours when you buy.
   --------------------------------------------------------------------------------

   

   Posted by:

   MpyreDzirez (100%) (seller)

   Private Message:

   Message me

9. Posted date:

   Fri, 15 Aug 2008 09:55:05 GMT

   Actions:

   Comment ID:

   #9

   How many members does the site currently have? How many pay quarterly? How many pay annually?

   

   Posted by:

   nicholasp (60%)

   Private Message:

   Message me

10. Posted date:

    Fri, 15 Aug 2008 10:29:43 GMT

    Actions:

    Comment ID:

    #10

    31 currently on quarterly and 5 on yearly = approx. $5,000 in recurring revenue

    The bulk of our money comes from first time sales since our retention rates are
    not the greatest. If the new buyer adds in a drip feeding content system or
    delivers the content via autoresponder - then retention will dramatically increase.

    As of right now they get all the content right away and there's no need to keep
    their subscriptions. A forum would help a lot also as there is no community element.

    Justin Brooke

    

    Posted by:

    MpyreDzirez (100%) (seller)

    Private Message:

    Message me

11. Posted date:

    Fri, 15 Aug 2008 10:33:47 GMT

    Actions:

    Comment ID:

    #11

    Oops forgot a question... we have 319 members in all

    

    Posted by:

    MpyreDzirez (100%) (seller)

    Private Message:

    Message me

12. Posted date:

    Fri, 15 Aug 2008 15:07:06 GMT

    Actions:

    Comment ID:

    #12

    Did you write all of the content (including the information products and membership site content), or did you outsource it?

    How is the production of the $997 product handled - do you stock inventory and mail it out yourself or is it dropshipped for you?

    

    Posted by:

    coolguyrob (100%)

    Private Message:

    Message me

13. Posted date:

    Fri, 15 Aug 2008 18:28:27 GMT

    Actions:

    Comment ID:

    #13

    Hi Justin,

    Im just curious, has running this business pretty been a full time job (i.e. do you do this "on the side" or is it your bread and butter)? Reason Im asking is that its obvious you've put a lot of effort and work into this. Im currently working 9-5, running a few small sites on the side and my only concern is the amount of time it would take to keep this site on par with what you've already established. The content looks to be of very high quality BTW, I watched the hour long intro video last night. Nice design as well.

    Mike

    

    Posted by:

    mikeyjudkins (0%)

    Private Message:

    Message me

14. Posted date:

    Fri, 15 Aug 2008 18:56:00 GMT

    Actions:

    Comment ID:

    #14

    @coolguyrob All the content was done by myself except for maybe 2-3 videos
    I took from youtube that showed something useful (like how to use Google website optimizer)

    The production and distribution of the home study course is all handled on near autopilot
    from the fulfillment house. If you buy I'll make sure to show you exactly how that all works.
    Basically every time you get an order they receive an email about it too and ship it off to
    the new owner. We have it arranged that we pay for 50 courses at a time which is just over
    the price of one home study course sale.

    

    Posted by:

    MpyreDzirez (100%) (seller)

    Private Message:

    Message me

15. Posted date:

    Fri, 15 Aug 2008 19:06:15 GMT

    Actions:

    Comment ID:

    #15

    @mikeyjudkins When we started the business it was a full time job. However,
    it is all pretty highly optimized now with systems in place for most things.
    You'll need about 10 hours a week to keep it going strong. It would be perfect
    for someone looking to quit there job and work from home.

    This site makes up about a little less then half my income so it's not like
    I'll be broke when I sell it. My next project is almost finished also and will
    put me above where I am now as the owner of SiteFlipAcademy.

    The 10 hours a week is mostly checking the traffic sources to make sure nothing
    is wrong and answering a couple emails per day. If you added on a little time to
    recruit more affiliates then profits would increase quite a bit. Example

    10 affiliates x 1 sale per day each = 10 x $19.95 = $199.95 x 365 = $72,981.75 more per year x 50% for the affiliates = $36,490.88 profit

    So basically every time you added 10 more affiliates making just one sale per day
    you would give yourself a $36,000 raise. And you could also pay someone else to
    handle that for you from overseas (cheap) and make it hands free.

    Lemme know if you're interested...

    Go Bigger,
    Justin Brooke

    

    Posted by:

    MpyreDzirez (100%) (seller)

    Private Message:

    Message me

16. Posted date:

    Sat, 16 Aug 2008 21:11:47 GMT

    Actions:

    Comment ID:

    #16

    Justin does your website have a partnership with Sitepoint for the siteflippers challenge?

    

    Posted by:

    chrisb125 (60%)

    Private Message:

    Message me

17. Posted date:

    Sat, 16 Aug 2008 23:30:07 GMT

    Actions:

    Comment ID:

    #17

    Yes Chris,

    That event was co-sponsored by SiteFlipAcademy.com
    and Sitepoint.com. We planned on doing the event
    every year and the new owner will get that site as well

    Justin

    

    Posted by:

    MpyreDzirez (100%) (seller)

    Private Message:

    Message me

18. Posted date:

    Sun, 17 Aug 2008 04:06:57 GMT

    Actions:

    Comment ID:

    #18

    This website has been sold to a private buyer - thanks everyone for your questions,
    bids, and your time. I'll be back with more sites soon!

    Go Bigger,
    Justin Brooke

    

    Posted by:

    MpyreDzirez (100%) (seller)

    Private Message:

    Message me

Ask the Seller

To post a comment on this contest, please log in with your SitePoint username and password. If you don't have an account yet, you can create a new account for free.