There's an article on the 37signals blog as well:
http://37signals.com/svn/posts/3172-sortfolio-going-once-goi...
37signals lists web designer directory Sortfolio on Flippa
11–20 of 21 posts
Re: 37signals lists web designer directory Sortfolio on Flippa
#12Has 37s indicated how the billings will transfer? If by default, after the sale, users have to opt-in and provide their billing information again, there will be a substantial loss of customers, well beyond typical churn.
Additionally, if I were interested in purchasing Sortfolio, I'd want a clear picture of their customer acquisition practices. If most customers are being acquired through the 37s website and/or branding, you cannot count on continued revenue streams. If customers are being acquired by channels that don't rely on 37s, I'd be much more comfortable with it.
Re: 37signals lists web designer directory Sortfolio on Flippa
#13Earlier quoted context omitted.
It's not a core service for them. It might be running on its own now but at some point it's going to need some attention which means distraction.
It seems you missed the part where he said "hire someone to handle it". That someone doesn't need to be in the same office. I personally would happily take that role - I'm on a different continent and won't ask for their phone number.
Hiring and managing a person is not a zero-cost effort, even after you account for direct compensation costs. If you value giving employees great jobs, and a chance to do excellent work, then hiring someone on a different continent and not letting them contact you is not aligned with your values. Further, management bandwidth is one of the most expensive resources at any company, and spending it on a non-core product is not smart.
Focus matters. It's one reason why most successful businesses aren't do-everything conglomerates.
Re: 37signals lists web designer directory Sortfolio on Flippa
#14I'd lease it. 50% split until the 480k is paid off, or the site dies.
Re: 37signals lists web designer directory Sortfolio on Flippa
#15I don't have 500K, are there any other good deals on Flippa? I'd love to buy an autopilot business for that rate of return. Any advice? Has anyone bought a site on Flippa?
I sold a silly blog for $15,000 just before they changed their name to flippa.
Re: 37signals lists web designer directory Sortfolio on Flippa
#16Re: 37signals lists web designer directory Sortfolio on Flippa
#17A friend of mine with lots of experience angel investing and running profitable B2B companies told me he looked at Sortfolio last Fall and passed. He didn't go into detail, but he said they're asking too much.
Re: 37signals lists web designer directory Sortfolio on Flippa
#18I don't have 500K, are there any other good deals on Flippa? I'd love to buy an autopilot business for that rate of return. Any advice? Has anyone bought a site on Flippa?
flippa is a cesspool of worthless sites, scams, and con-men.
But, there are some occasional transactions that are worth looking at, if only to get ideas of things to build.
Here's a recent sale of thecupcakeblog.com: https://flippa.com/2736282-over-1000-ad-rev-199k-visits-475k...
Those come along about once or twice a month.
Re: 37signals lists web designer directory Sortfolio on Flippa
#19Earlier quoted context omitted.
It seems you missed the part where he said "hire someone to handle it". That someone doesn't need to be in the same office. I personally would happily take that role - I'm on a different continent and won't ask for their phone number.
Hiring and managing a person is not a zero-cost effort, even after you account for direct compensation costs. If you value giving employees great jobs, and a chance to do excellent work, then hiring someone on a different continent and not letting them contact you is not aligned with your values. Further, management bandwidth is one of the most expensive resources at any company, and spending it on a non-core product…
management bandwidth
There is no management.
After the handover (which would be needed for a sale as well) there is no need to ever talk again. Just put the guy on auto-pay and have the contract automatically terminate when the revenue falls below a defined threshold (i.e. the site has fizzled out) or when the SLA is not met. Not rocket science really, should take all of 15 minutes to write a shell-script to send out the notification when it happens.
Of course if you pick the wrong person you might have to do it again, but I'd hope 37s would be able to gauge the competency of a candidate for that role. It doesn't take a genius to keep a trivial rails-site running, and motivation shouldn't be an issue with that kind of compensation.
But sure, if throwing away $100k/year in passive income better "aligns with your values" then you have bigger problems anyway...
Re: 37signals lists web designer directory Sortfolio on Flippa
#20I don't have 500K, are there any other good deals on Flippa? I'd love to buy an autopilot business for that rate of return. Any advice? Has anyone bought a site on Flippa?
flippa is a cesspool of worthless sites, scams, and con-men. But, there are some occasional transactions that are worth looking at, if only to get ideas of things to build. Here's a recent sale of thecupcakeblog.com: https://flippa.com/2736282-over-1000-ad-rev-199k-visits-475k... Those come along about once or twice a month.
I'm obviously biased but this sold list shows that we regularly sell awesome websites: http://bit.ly/JDV1hg
Try out our advanced search and you can very easily drill into sites that meet your quality definition: https://flippa.com/search