Websites Insider — Jan 4, 2022

Happy New Year! And welcome to Websites Insider – FREE issue.

We analyze deals and use Moneyball tactics to discover undervalued, mispriced, and hidden gem websites for sale.

In this issue, we’re looking at a content website in the cooking & health niche, although it is specifically about recipes. It has over 700 articles and utilizes WordPress as its CMS.

Let’s explore

RecipeSelf.com

Available on MotionInvest

Why Recipes?

Looking up recipes has and always will be done at a high volume as long as there are people around. It’s not hard to imagine why – people like making good food.

With millions of recipes in the world, there is plenty of content ideas. Additionally, recipe sites are in good position to rank for cooking and kitchenware keywords as well, allowing for plenty of monetization opportunities and no shortage of interest topics for an ever-expanding audience.

Just looking at “Recipe” as a topic we can see that it has been very consistent, with a few seasonal spikes around the Winter holidays, over the past four years below:

There doesn’t seem to be an obvious reason for the big DIY jump in 2010, but it’s certainly a big one.

What’s the site about?

  • Recipe Self is an online content site about recipes and kitchenware reviews, with an emphasis on the former
  • Organic traffic in the last 6 months has more than doubled and earnings have tripled, though the earnings certainly benefited from some seasonality in Q4
  • The site earned $13,384 from January 2021 – November 2021, with ~95% of revenue coming from Ezoic and ~5% from Amazon Affiliate US, with the past 6 months making an average of $1,516/month
  • The site is valued at $64,180, which represents a whopping 45x of the last 6 months average monthly profit

Details

  • Gross profit/month: $1,516/month
  • Users/month: ~50,000
  • Age: 18 months

Strengths, Weaknesses, and Opportunities

Strengths

  • Growing – seeing month on month traffic and earnings increase
  • Massive 700+ articles to optimize, prune, and get more gains out of
  • Evergreen – the topic is popular all year and is never going to become irrelevant

Weaknesses

  • Design – It’s not terrible, but it’s not great.
  • Young – at 1.5 years old it’s still a relatively young site
  • Might require EAT since the site has articles on dieting Google reviewers may expect adequate EAT (no pun intended), which if the site doesn’t have, may put the site at risk of penalization
  • Low DR the site doesn’t have a strong link profile and may be edged out by competitors with a higher Domain Rating

RecipeSelf.com’s design could use some work, but the growth and revenue are good.

Opportunities

  • Higher RPMs – the site now qualifies to work with Adthrive and Mediazine, both considered to be better ad networks with higher RPMs than Ezoic
  • Add a lead funnel – create a way to capture emails to push more visitors to the content and to generate more affiliate sales
  • Improve design – with a very simple basic design users might stay longer on the site if the site had a more polished look, which can increase user metrics, rankings, and earnings
  • Linkbuilding – with a low DR, the site can benefit a lot from a successful link building campaign
  • YouTube – with recipes, cooking, and dieting being such great niches for video, a new owner can look to get Youtube videos made for the site, which can not only drive more traffic and diversify earnings but can even improve EAT

Inferred Value: $46,844

With the site consistently getting more traffic, having multiple opportunities for quick wins, and having a great long term outlook we’re excited about the potential of the site.

We believe the site is currently overvalued at the time of writing at $63,675, but this price will change since it’s being sold via a dutch auction, which means the price decreases periodically if it is not sold.

A big reason it is overvalued is that only the last 6 months of revenue have been taken into account which skews the valuation. Instead, we believe 3.5 years of the last 12 months revenue is a valuation worth exploring for buyers. This translates to 42 * $1115.33 = $46,844.

Recommendation & Outlook

This section is for [INSIDERS ONLY]

Listings we passed over:

Here are the sites we checked out, but decided against recommending.

ProductComparison.co

Available on Empire Flippers

  • Tech site that is evergreen and can be expanded indefinitely
  • Consistent and improving earnings
  • The lackluster design makes the site look low quality
  • Little moat – only ranks for low competition keywords and has a weak link profile

Coffee business

Available on Investors Club

  • Exciting niche (coffee & beverages)
  • MoM growth in revenue and traffic
  • Hit hard by December algorithm update so traffic and earnings moving forward will definitely be lower than what the current trend seems to be

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Author

Stefan Von Imhof

Stefan Von Imhof

Stefan lives and breathes asset analysis and valuations. Before founding Alts, he was the Head of Product at Flippa, he created and ran Flippa's Due Diligence Program, and has bought & sold dozens of websites & newsletters. Prior to Flippa he was the first product manager at HG Insights, a market intelligence company which sold to Riverwood Capital Partners. Originally from Boston and later Santa Barbara, CA, he now lives in Australia with his wife & Boston Terrier, Charlie.

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recipe self

Websites Insider — Jan 4, 2022

In this issue, we’re looking at a content website in the cooking & health niche, although it is specifically about recipes. It has over 700 articles and utilizes Wordpress as its CMS.

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