Diving deep into the data I recently stumbled upon a treasure trove of information about six-figure affiliate websites.
I’ve been analyzing online businesses for years but this data set really opened my eyes to some key trends that could help anyone looking to build a successful content-driven affiliate site.
Unveiling the Secrets of Six-Figure Affiliate Sites
Let’s get this out of the way: the exact niches of these sites are a closely guarded secret.
We’re protecting both buyers and sellers by keeping the specific topics under wraps.
But don’t worry we’ll be into the general themes and commonalities that emerged from this analysis.
Think of it as a roadmap to building a six-figure site without giving away the “secret sauce.”
The Million-Dollar Question: What Do Investors Want?
The most valuable question to answer when thinking about building a six-figure website is “What are investors looking for?”. We analyzed close to 20 six-figure affiliate sites that were sold through our marketplace Empire Flippers and discovered some fascinating insights.
Uncovering the Value Drivers
Here’s the thing about online businesses: they can be wildly different even if they use the same business model.
So let’s define some key terms to make sure we’re all on the same page.
- List price: This is the initial asking price for the website on our marketplace determined by our experienced vetting team.
- Sales price: This is the actual price a buyer pays for the website after negotiations.
- Multiple: This is the number you multiply the average monthly net profit by to determine the valuation.
The multiple is determined based on various internal factors and typically falls somewhere between 20x and 60x.
It’s a big range because as I mentioned each website is unique!
The Power of Transparency
What’s truly remarkable is that we’re sharing the actual sales prices and multiples.
Transparency is key and it sets our report apart from many industry studies.
We discovered that the average list price for a six-figure affiliate site was $297186 with the average sales price being $293661. This indicates that the valuations are pretty accurate landing within a tight range.
We also found that the average sales multiple for a six-figure affiliate site comes out to a whopping 28.89x which is even higher than our current market average for the year.
This suggests that investors are very keen on acquiring well-established content sites.
Quick Sales and Market Demand
One of the most exciting things we found is that these six-figure affiliate sites sell pretty quickly! On average they took just 27.52 days to find a buyer.
The majority of the sites were sold within a single month showcasing the strong demand for established online businesses.
This isn’t just about luck it’s about expert valuation and negotiation skills.
Our team of business analysts works tirelessly to connect sellers with the right buyers and get the best possible price for their online assets.
The Nitty-Gritty: Analyzing the SEO Metrics
Now let’s delve into the SEO data to see what’s driving the success of these six-figure affiliate sites.
Domain Rating (DR) and Referring Domains (RD)
DR is a crucial metric that reflects a website’s authority in Google’s eyes.
It takes into account backlinks referring domains and other factors.
The higher the DR the better your chances of ranking in search results.
Across the 19 sites the average DR was 31.52 with a median DR of 27. This is a respectable DR for a well-established site especially considering that a new site starts with a DR of 0.
Referring domains are a critical part of DR.
The average number of referring domains across these sites was 893 showing the importance of building a strong backlink profile.
Unveiling the Power of Top Pages
We also looked at the UR (URL Rating) and RD for the top five pages of each website.
These are usually the strongest pages and often serve as link magnets attracting links from other websites.
We observed that the higher the UR the more RDs pointing towards the page.
Traffic Doesn’t Always Equal Success
It’s easy to assume that more traffic automatically translates to more money but that’s not always the case.
The key lies in targeting buyer intent keywords and choosing affiliate offers with high payouts and conversion rates.
For example one of the sites in our analysis had a massive 280000 visitors per month but only sold for $212932. This shows that a high volume of traffic doesn’t necessarily guarantee a high sales price.
Building a Solid Foundation: Homepage Strategies
We also examined the different homepage strategies employed by these six-figure affiliate sites.
We found two main approaches:
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Branded Portal Homepage: This type of homepage focuses on directing traffic to various articles within the site. They often display categories of articles on the webpage to guide visitors towards relevant content.
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Monetized Article Homepage: This approach is common for smaller affiliate sites. The homepage features a lengthy article targeting the site’s main keyword often with affiliate links comparison tables and other elements.
We observed that the majority of buyers prefer the branded portal homepage for six-figure and higher-priced websites.
This preference stems from the fact that a branded portal homepage allows for easier link building brand building and community development.
The Art of the Sale: Key Considerations for Sellers
As a seasoned expert in this field I’ve learned that there are specific elements sellers need to address when preparing to sell their affiliate site.
Transparency and Revenue Validation
Buyers want to know they’re investing in a legitimate business.
Be prepared to share your affiliate dashboards Profit and Loss statements and any other relevant financial information to back up your claims.
Remember buyers have a two-week period to verify revenue after accepting an offer to ensure everything aligns with your representations.
CTR and Conversion Rates
Buyers closely examine your CTRs (click-through rates) and conversion rates.
High CTRs indicate compelling copy while a high CTR with low conversion rates might suggest that your affiliate program needs an overhaul.
Maintaining a spreadsheet of your CTRs and conversion rates for different affiliate offers is a wise move.
Linking to Other Sites: Be Prepared to Explain
Buyers will inquire about any links to other sites you own from the site you’re selling.
Be ready to clarify why those links exist especially if they’re related to the same niche.
You might need to remove these links or sell those sites as a package deal with the main site to comply with non-compete agreements.
Affiliate Networks: A Detailed Spreadsheet is a Must
Keep a comprehensive spreadsheet of all the affiliate networks and offers you’re promoting including past offers that have been discontinued.
This information allows buyers to assess which offers performed well which ones didn’t and whether any similar offers are still available.
Content Performance: Showcase Your Top Earners
Create a spreadsheet of your top-earning content pieces to give buyers a clear understanding of what’s driving the site’s revenue.
This information can inspire them to optimize similar pages or explore new opportunities for growth.
Writer Connections: A Valuable Asset
Be prepared to share any good writers you’ve worked with in the past.
If you have a team of in-house writers offer to assist the buyer in finding similar talent.
Having a reliable source of content can be a huge advantage for buyers looking to scale a site.
Email Lists: Monetize or Ditch
Don’t just accumulate email subscribers for the sake of it.
If you’re not using your email list to generate revenue it’s not adding value.
Buyers will be interested if you can demonstrate that your email list drives a significant portion of your income.
Show them your funnels open rates click-through rates and conversion rates to showcase the list’s potential.
Social Media Following: Real or Fake?
Be upfront about the authenticity of your social media following.
If you’ve purchased likes or followers be honest about it.
Buyers will appreciate the transparency.
If your social media presence is genuine and engaged be prepared to show how it impacts your business.
Special Deals: Transferability is Key
If you have any special deals with affiliate networks or managers ensure they are transferable to the new buyer.
Otherwise you’ll need to adjust your asking price accordingly or face the risk of not selling the site.
Market Insights: Provide Valuable Context
Go beyond general trends and offer specific insights into the industry your site operates in.
Share any industry-specific knowledge that buyers can leverage to their advantage.
Seller Financing: An Attractive Option
Consider offering seller financing.
This can appeal to buyers who want to invest in a promising business but may need some additional support.
You can negotiate a revenue share or equity stake in the business alongside the new owner.
Split-Testing: Be Ready to Explain Your Strategy
Buyers may be curious about why you’ve used multiple Amazon tracking IDs on your site.
Explain that you’re split-testing different pages to optimize conversions.
Be transparent about your testing strategies and how you’ve used data to drive results.
SOPs: Create a Business Manual
Develop detailed SOPs (Standard Operating Procedures) that guide the buyer through the day-to-day operations of the site.
Well-written SOPs demonstrate professionalism and instill confidence in the buyer.
Growth Strategies: Share Your Insights
Don’t keep all your secrets to yourself! Share your growth strategies both successful and unsuccessful with the buyer.
Provide valuable insights into what has worked for you and what hasn’t.
This transparency demonstrates your commitment to helping the buyer succeed.
Weaknesses: Be Honest and Open
Acknowledge any weaknesses in your site such as relying heavily on Google traffic promoting fad products or having a limited number of affiliate offers.
This honesty fosters trust and allows buyers to understand the potential challenges they might face.
Backlinks: Transparency is Paramount
Explain your link-building strategy especially if you’ve used PBNs (Private Blog Networks). Be prepared to keep those backlinks active after the sale potentially charging a monthly fee for their maintenance.
Website Maintenance: Outline Your Routine
Describe your weekly website maintenance activities from updating blog posts to creating new content.
Provide a clear roadmap for the buyer to follow.
Consider creating checklists and SOPs for any unique formatting or updating processes.
Technical Details: Be a Helpful Guide
If you’ve used custom CMSs or have special development requirements for your site provide detailed information to the buyer.
Offer to provide support and guidance especially if the site requires specialized knowledge to operate effectively.
Plugin Inventory: A Transparency Checklist
Share a list of all the plugins you’re using on your site.
Explain why you chose them and whether you’ve considered alternative options.
This transparency demonstrates your technical expertise and allows the buyer to assess whether any upgrades or changes are necessary.
Building a Winning Strategy: Focus and Consistency
This comprehensive analysis shows that there are countless ways to create a six-figure affiliate site.
Don’t get overwhelmed trying to replicate everyone else’s approach.
Focus on your strengths and what you’re passionate about.
Whether you excel at writing link building or content creation pick a few strategies that resonate with you and commit to them.
It takes time and dedication to build a successful affiliate site but the rewards can be substantial.
Remember you’re just one six-figure sale away from scaling your online empire.