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November 29, 2006
IT#8: Social-Networking Business for Sale on eBay? -bilandre
This Blog is in response to an article written about an Online dating site that is for sale on Ebay
The holiday season is coming upon us quicker than we think, and if you missed out on the Black Friday sales, then now it is time for you to gear up. As people flock to malls and retail stores, where parking can be an issue and the headaches only continue, there are those who choose to buy gifts from home. While TVC and mail order catalogs provide tons of excitement during the holiday season, eBay can be a strong alternative. Although eBay’s winter auctions include everything from a vintage signed Jimi Hendrix poster, to the highly sought-after Playstation 3, this holiday season provides for much more than just that. Instead of a poster or game consol, why not buy a friend their own business. Huh? Who buys a business through eBay? eBay’s newest auction is for the social networking website, www.hippiePersonals.com
When I first read this, I figured it was nothing more than buying a domain name which could become a social networking sight in the future, but boy was I wrong HippiePersonals is an up and running social network dating site with over 1800 members. The site is surprisingly diverse as well, with members from as far as Australia connecting. This offer, which has an opening bid of just under $10,000, is more than just a business. Winning the auction also bags you 55 other previously registered domain names that are ready to be turned into the next MySpace or Facebook.
Now $10,000 is a rather mild investment for a “working” business, but to me, this is a very risky idea. It requires a lot of research to effectively implement a well-run business idea, and seeing as bidding ends on December 4th, I can’t see this auction getting any takers. However, the description does say the website produces around $300/month in its current state, and by taking one look at the website, it is clear that there is a lot of room to grow. The interface could be made much more user friendly, and a lot more advertising space could be sold.
The offering of this website is an obvious attempt try and cash in on the social networking craze. It is pretty clear from the “item description” on the page that this guy is not making bank with this website, he just said he “doesn’t have time”. In other words, he created a website, it has a small number of users, and he doesn’t know what to do with it. And who could blame him? All of the advertising schemes, pricing structures, and revenue growth can be pretty daunting to someone without experience in the online advertising industry.
For the average Joe Schmoe trying to get rich, I would advise looking elsewhere. However, if someone is a risk taker, and has a background in online advertising, this type of open-ended website may be a perfect (albeit pricy) holiday gift!
Posted by brennels at November 29, 2006 02:01 PM