Should You Buy World Cup Websites for Sale?
As World Cup 2014 is about to end on July 13, 2014, many World Cup domain names and websites have been put up for sale. We have received tons of daily requests to buy or sell World Cup websites over the last month.
So the question is: Are World Cup websites a good investment? Should you buy World Cup websites?
My advice to clients has always been to stay away from World Cup websites tied to a specific World Cup year. Websites that cover multiple World Cups could be a good investment but must be assessed properly.
We discussed websites with seasonal revenues in a previous article. These are websites whose revenues change significantly with seasons.
The World Cup lasts for 1 month every 4 years. This means that once that month is over and fan interest diminishes, there is less demand for this information, and World Cup websites generally suffer a significant loss of traffic.
In addition, most World Cup websites are news websites that cover the games. Once the event is over, there’s little news content to add to the website, which contributes to traffic loss as well.
A World Cup website that covers multiple World Cup events could be a good investment. However, there’s only so much information an owner can add to this website. It could include news, game stats, and player profiles. This is great content but the website has to compete with more established authority websites like Wikipedia, FIFA’s official website, and large media companies’ sports pages like the Daily Mail, CNN, and The New York Times. It is very difficult to compete for traffic with these websites that will usually have better in-depth content on their websites.
In a nutshell, we advise our clients to stay away from World Cup websites that cover just one World Cup. The life span of the website is too short to build a sustainable business with increasing traffic and revenues.
World Cup websites that cover multiple World Cups are a better option but must be analyzed carefully. They will have to compete with the big guys and must prove that they can and have competed successfully over the years.
Avoid new websites under 12 months old. They don’t have enough traffic and revenue history to properly assess their competitiveness.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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