Since Cloud Income is all about showing you what’s working RIGHT NOW rather than several years ago, I’m going to launch a new case study that you can follow along with in real-time on this blog.
Unlike many of the case studies you see out there. I don’t wait until a website is a success before sharing it and shouting how great I am (even wondered how many failures they’re not sharing?). I prefer to show you in real-time, so you can see that sometimes (often) things fail.
It’s the ability to carry on despite those setbacks that really make a difference.
This one is a little different, and it all starts with a private deal via Facebook…
How I Bought The Website
I spotted the opportunity in a Facebook group for website buyers and sellers. The seller posted a ‘site for sale’ message with the details of the website (niche, traffic, published articles, asking price, and a short overview).
I contacted the seller and it turns out he already had an offer of $5,000 on the table.
After a number of messages back and forth with the seller, my due diligence was complete and I made him an offer for $6k, only if he accepted it today and didn’t reach out to the Facebook community to try and gazump my offer.
We agreed he would contact the person who had made the initial $5k offer to see if he was still interested at $6k+. It turns out they weren’t and I sealed the deal for $6,000 USD.
What To Expect From This Case Study
First up, I won’t be revealing the domain name. Historically I’ve faced a fair few unsavory characters who’ve targeted me via this blog and someone even tried to blackmail me!
So, in order to protect the asset, and not skew any stats and metrics, I’ll keep the domain hidden.
Here’s what I will be sharing:
- The deal process and how I acquired the website
- My plans to grow traffic and revenue
- Monthly traffic, expenses, and income reports
- Successes and failures of my tests
- What my goals are and how it’s performing
About The Case Study Site
I’m a member of several of the website buying/selling/flipping Facebook communities and I’m always on the lookout for good content sites to purchase, which can be tough, as you need to be skilled in quickly spotting the potential deals, from the crap that exists out there.
Having been in the game for a number of years, I can within 30-seconds if a posting is worth my time to investigate, 9 times out of 10, they’re not. But every once and a while, you see something interesting.
We conducted the deal through Escrow, which is the safest way for both parties when it comes to exchanging digital assets. The process is pretty simple, the buyer or seller creates a new transaction and set the terms (price, assets to transfer, parties involved).
- The buyer & seller agree to the terms
- The buyer wires the funds into Escrow
- The seller pushes the domain to the buyer and transfers to website files
- A 7-Day inspection period begins
- Buyer accepts all is well
- Seller gets paid from Escrow
As you can see from the screenshot above, the process took 10-days in total, since my wire transfer from the UK to Escrow takes 5-days and I only needed a few more days to confirm everything was as described.
Here’s a current snapshot at the time of writing. The organic traffic has dropped from around 14-15k to 8.4k as you can see above.
This puts the case study on the back foot before we’ve even started. But I’m not worried and like a challenge. This is one thing you get from a live case study, rather than one that’s already completed.
Current Traffic & Revenue
The most interesting part of this case study is that I’ve invested in a website that currently has ZERO REVENUE.
Yes, that’s right. I paid $6,000 for a website making zero dollars. Here’s why
You see all those position 1 rankings this website has? Most of those are featured snippets, so there is a risk I could lose them (I think I already have lost some with the May-20 Google Algo update).
Most of them are also informational keywords and don’t necessarily fit well with affiliate offers, but display ads will work. So this is something new(ish) to me too, in that, I plan to primarily use display ads to monetize this website.
But it does show promise and makes me excited to see what I can do to grow this website and flip it in 12-months time.
In order for me to break even on the purchase, I’d need to hit around $200 /month net profit (multiplied by 30x gives an asset value of $6k). It’s not the first time I’ve purchased a website with zero revenue and purely for the potential display, so the risk here is minimal.
Plus it makes for a more interesting case study!
Next Months Tasks For The Website
- Completely redesign the website
- Get the site to load under 2 seconds
- Establish baseline revenue via AdSense (or Ezoic)
- Join some affiliate programs & insert offers where appropriate
- Perform upfront keyword research to find topics and keywords to target
The Overall Goal For The Case Study
At the end of this case study, I’d like to have an asset worth at least mid-high 5-figures, if not 6-figures. That would require a monthly net profit of around $2k to $3k if using a 30x multiple.
I have only a few hours per week to dedicate to this website, so I will need to be strategic in the use of my time and what we can and cannot realistically achieve.
I’m excited to get started and will be updating the case study monthly with everything I do and sharing the results as we go.