When we first listed car insurance quote site CarInQuotes.com on Latona's, the lead generation site had a running revenue average of about $170,000. Today it's doing more than $2000 per day or more than $700,000 per year.
It's a good case study of the pros and cons of buying search engine sites. The seller originally wanted a higher reserve because the revenue was historically over $1000 per day. Google's panda update gave it a big hit though and the revenue dropped in half. We based our reserve on the hit that panda delivered. We felt it was a safer buy for our customers at that number.
Since that time, results have gone back to previous levels and in fact, improved beyond it. The reserve is still the same and I haven't updated the revenue figures on the Latona's listing because we need to see it maintain that revenue for longer than a couple of weeks.
I felt compelled to blog about it today and point out the obvious, that these sites go up and down. The key is to buy it on a price that's safe when it's down which is where we feel we have it marked at now.
A savvy buyer could take this site and put a strategy in place to maintain the higher levels of earnings and hopefully, increase it even more.
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Wanda
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Wanda
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Anonymous
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http://twitter.com/idntraffic Yanni
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Wanda
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