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I'm assuming this is rhetorical but I'm not getting the message. I see how it's a "sellers market" in this situation, but a heavily functioning source of recurr
by beezee 15y ago
I'm assuming this is rhetorical but I'm not getting the message. I see how it's a "sellers market" in this situation, but a heavily functioning source of recurring leads for a one time purchase should pay for itself in time- I can't see why a legitimate valuation wouldn't work in this scenario as well. Some of these "lead-gen" sites are probably individuals who would be happy to sell their site for 10 to 12 months revenue upfront.
- byrneseyeview 15y agoIt's a market for lemons: some lead-gen sites will last a while, and some will get burned by Google or the FTC. If you're a buyer, you know that those are possibilities, so you bid less than what you'd bid assuming that the site would last forever. Now sellers know that if they sell a good site, it'll be undervalued, so they have a natural tendency to sell the bad sites. The original "market for lemons" paper valued a lemon at half the cost of the good version. When your lemons are worth zero, or have a negative valuation, there may be no market at all.