Friday, August 29, 2008

Trading Websites

I have to credit Uglychart with this find (dug it up from his archives).

Dave Hermansen did not own a bird or a cage when he bought bird-cage.com, an online store, for $US1800 three years ago. He simply saw a website that was "very, very poorly done", and begged the owners to sell it to him. He then redesigned the site, added advertising and drove up traffic. Last December, he sold it for $US173,000.

With the magic of the WayBackMachine you can see what changes were made from the time of his purchast to time of sale. You can see the archive data for Bird-cage.com here.

So if he bought it in 2005 it probably looked like this (very '90s)


In November 2005 he gave it a bit of a facelift (archives missing some JPEGs):


In September 2006 the updates started to kick in with regularity:


The final update before sale in December 2007 looked like this (October 2007):


Which is similar to what it looks now.


What I want to know is how many birdcages was he selling during the 3 years he owned the site? And why would someone pay $173,000 for a site that went from looking all 1992 to all 1995 (in 2007)??? I suppose it was the traffic which won the day



Presumably bird cage buyers aren't too concerned about site appearances. But you could do so much more with this...


Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
 
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