FindABabySitter.com.au acquired by Fairfax for $3Million

[Ross]

Hi Guys,

One of my perspective clients sent me this link and i thought it was relevant to domainers... because of the domain involved. The title pretty much says it all.

http://www.smartcompany.com.au/info...babysitter-com-au-for-reported-3-million.html

It also shows that there is money to be made by a small operation who can meet the needs of the market. Who could have thought that the babysitter market could produce $3m?

Obviously the site went for that much because they had an extensive database of clients (who fairfax could market to in the future).

 

[Billy01]

Finda

This news is a couple of months old.

Fairfax are all over this internet thingy.

I'm guessing the next thing they will do is a classified site called finda

 

[Data Glasses]

My accountant saved a article from the age and gave it to me , it was regarding packer buying myhome.com.au for $8 million and then the seller purchased it back after PBL pulled out of a deal to use the domain ! what a profit and got to keep the domain.

These stories are not common though and i dont think we should up the value of our portfolio on these stories

 

[neddy]

Fairfax had deep pockets when David Kirk was Chairman. (As much as it pains me to say, he was a brilliant All Black captain!)

Google their various purchases - TradeMe in NZ went for about $700m; RSVP in Australia went for some millions; Stayz also. Lots of others. What do these sites have in common? People aka members - plus they also spend a bit of money!

Build a site with great verifiable membership and you're on your way to getting a payday IMHO!

 

[Denis]

great article, thanks for sharing ross

 

[soj]

Fairfax, PBL, I will sell DN Trade for less than the millions you have paid for other sites

 

[Denis]

If the site has 17,000 subscribers paying $49.95 (for 3 month) and if it has 10,000 posts per day generated from those 17,000 subscribers then $3million is very undervalued. It should have been more towards $5-6 Million. But still good money for a startup that cost less than $15-$20k at most.

 

[Lorenzo]

the real problem is that...

THERE ARE BREEDING TOO MUCH!!

Too many kids.

Anyway a clever site.

 

[djuqa]

Great price , but ChildCare IS a Multi-billion dollar business.


And Fairfax can have Domainer.net.au for a Couple million as well

 

[Ross]

While the running costs of the website are quite small, a heap of cash is spent on advertising (probably 5 figures a month)...PPC as they're not the only ones in that market... which I'm sure significantly erodes the profit margin.

Buy yeah, 3 million is a pretty small amount to get the leader in most industries.

Even in domaining, i think DNtrade, netfleet, 100domains are worth quite a lot... because they're the leaders in their respective categories... and companies are willing to pay a significant premium for being number 1.

Soj, how much would you sell DNtrade for if someone approached you?

 

[Data Glasses]

at this point only one of the above is returning a good revenue

 

[paz]

Soj, how much would you sell DNtrade for if someone approached you?

Probably a kebab.

 

[soj]

Ross, to be honest, I haven't really thought about it. I don't have any need to sell it to fund other projects, so would have to be a decent offer.

Paz - It would have to be one very good kebab!

 

[Data Glasses]

Ross, to be honest, I haven't really thought about it. I don't have any need to sell it to fund other projects, so would have to be a decent offer.

Paz - It would have to be one very good kebab!

with extra yogurt sauce !

 

[Jonathan]

I think DNTrade will be pretty huge in 24 months. I would definitely hold out for 2 kebabs, at least.

 

[Data Glasses]

is just me or does soj remind you of cory the party boy ??? ... must be the sunnies !

 

[paz]

haha i think its just you space-cadet!

 

[Data Glasses]

hey i am not the one offering kebabs for websites .....space is ace