The popular banner exchange service EntreCard is now up for sale at SitePoint. The owner Graham Langdon has put a minium bid of $100,000 and a reserve of just under a million dollars.
He claims that the ad network is serviing 80 million impressions per month, 3 million clicks pre month and is growing at 16%. He also claims the site is making $2,000 a month however there is no revenue or traffic evidence to back any of this up. I’m not disputing these figures but I also think that he won’t make a sale until he backs them up. More importantly, his asking price is absurdly high. You all know that I’m not a fan of the EntreCard service but anyone who pays 1 million dollars for this site needs their head examined.
As usual, the high price is being justified by the potential the site has and I agree that this site does have potential. However, it will be very difficult for anyone to get a return on such a high purchase. He has suggested a few methods as to how the new owner could make money from the site (why isn’t he implementing them then??) but I don’t think that this site is a money maker. Although the site has many members, very few of those members have an advertising budget to spend on the site. From an advertisers point of view the members here are the low end of the market. This isn’t an insult to those who use EntreCard, it’s just that the people who use the service are less likely to actually pay for advertising that other bloggers.
Although I’m not a fan of the service, I do think that the site does have potential and a company with some financial backing could make a return as the site has a large memberbase. To do so though I think the owner has to drastically reduce his reserve price of high $xxx,xxx and be more up front with traffic and revenue evidence.
Hopefully the site is sold as I’d like to see the service go in a different direction and clean up the way things currently work. In my opinion we do need more blogger services such as this but until now, no one has got things right.
Link : EntreCard Sitepoint Auction