CEO Update - When is an asset ‘ripe’? Revealing the average age of sites, stores and apps

    A Message From Our CEO  Hi , For those new to Flippa (a whopping 26,980 since my August note), I like to send around a message once each month, typically reflecting on your feedback and contemplating the state of this exciting space. It's a chance to let you peak behind the scenes here at Flippa. We always have a lot to talk about. For instance, did you know that we saw our 3 millionth member join Flippa last week? That’s enormous. Thank you. We will be celebrating with a promotion next week so stay tuned. In the meantime, I wanted to share some insight into sales on Flippa, the average multiple and the average age of the sites, stores and apps that sell on our rich platform. I’ve been spending a lot more time with our buying community lately and as you’d expect, the issue of aged assets often comes up. Alongside financial performance, operational and time cost, traffic origination and business model, one of the most important characteristics of any online business relates to age. The younger the asset, the more downward pressure on valuation. Why though? Brand, authority and most critically, resilience are all very important attributes of a strong business with future growth opportunity. So then, what is the average age of an online business, site, store or app sold on Flippa? The average age for an asset sold on Flippa is 4 years and 6 months. BUT, for all assets sold between $100,000 and $1million, it’s even older - the average is 5 years and 7 months old. Wow. What does all that mean? It means that with all that is going on right now, with the extraordinary adoption of online small business ownership, there will be a far larger market for ripe assets in the years to come. And what about average multiple? It’s 2.78x annual net profit or SDE across all assets but interestingly for smaller assets, those that sell between $10,000 to $50,000, it’s a whopping 4.6x. This is most likely due to buyer demand. The number of buyers in the market for assets at this size is an order of magnitude higher than for those priced over $100,000. Insightful! These numbers surprised me greatly actually. I hope they add some value for you also. Reach out if there’s anything else you’d like us to pull some data on and we’ll see what we can do. Get me at CEO@FlippaMarketplace.com. Regards Blake     This data in this email in so far as it relates to a business or asset listed for sale on Flippa has been provided by the seller to Flippa. Flippa has not independently verified any of the information about the business and assumes no responsibility for its accuracy or completeness. 

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