5
Oct

BANS Is For Sale For A Mere $500,000

Owners of Build A Niche Store just got word that the eBay affiliate store builder is going on the auction block. Yes, BANS is for sale. Actually it’s already up for auction at Flippa.com and you can own it for a Buy It Now price of only $500,000. Or if that’s a bit too steep for you and you think you can get it for cheaper through the auction process, the opening bid starts at just $200,000. I’d sure like to collect an affiliate fee on that sale.

Not only is BANS for sale, but everything related to BANS including N1Way (which was honestly a bit disappointing) and 27 related domains in various stages of development go along with it. It does seem kind of odd that the developers just came out with the new ebook or e-online-whatever, The N1Way or The Number 1 Way To Make Money Online only 3 months ago and they are now selling the whole show. Actually when you see that the total revenue generated from the ethingy N1Way was only $16,926.59, it’s not quite as surprising.

It’s a pretty interesting read at the auction page to look at the profit generated from BANS and all the domains that go with the sale as well as how the profit from BANS took a serious nose dive┬álate last year and into┬áthis year. Profit for 2008 was $267,985 and profit so far for 2009 is right around 20% of that at $54,009. In reading the auction page you see the revenue drop off beginning in July or August of 2008 where they state:

At this point BANS was starting to get a bad reputation as being used by spammers so we re-developed the sales presentation and user forum accepting a significant cut in revenue so that it would have a legitimate shot as a long term project.

It was about that time that several people including myself started seeing some of their version 3.0 BANS stores getting deindexed by Google. I’ll take part of the blame for that in that I was putting up too many stores and not having enough time to fully develop them, while a lot of the blame goes to eBay affiliate spammers who used BANS for hundreds or thousands of garbage sites with no content and only auction listings. The general consensus was that Google didn’t like this and identified something in v 3.0 that was a footprint and removed many, many sites from its index. Some of my eBay affiliate income has returned since taking a big dive around the end of 2008, but it’s still not where it was at its height of around $1,000 per month.

While BANS is for up for auction, it in no way changes what I’m doing with it. Since the glory days, I’ve continued to work on a couple of my sites with one taking up the majority of my BANS related time. Getting backlinks and working on a blog added to my primary store has made somewhat of a difference and that will be the direction I’ll continue to head in for the time being as far as BANS relate affiliate revenue. I also have several other sites with eBay auctions and the good news is that my Quality Click Pricing Report last month was significantly more than twice the actual revenue earned. As long as that holds, I’ll have nothing to complain to eBay about its new click pricing model. If it doesn’t, well then, it will be suspect.

BANS will still continue to be a great product regardless of who owns it as long as you develop your stores and treat it like a business.

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18 Responses to “BANS Is For Sale For A Mere $500,000”

  1. I think the business is vulnerable to changes in EBay affiliate policy, and we have recently seen that EBay is not afraid to make sweeping changes. Along with the fact that PHPBay for WordPress has many advantages I would say that this is a risky purchase at anything above 2x expected 2009 revenue. What do you think is fair pricing Alan?

  2. Interesting post.

    I’ve heard a lot of postive things about BANS and have seen people having succes.

    Will be looking forward to see if BANS gets sold.

  3. Phil,

    I think BANS still has a lot of potential and I think there are a lot of things you could incorporate into it such as Amazon and other shopping engines, but a Buy It Now price of $500k seems a bit excessive. A $200K starting price is more in line, but we will see what the market can bear.

    It is a bit confusing when you read the auction page because they state that BANS brought in over $500K in revenue over its lifetime and then they go on to say that the $500K was profit when you add up the yearly totals. I’d definitely ask them about that if I were interested in purchasing it.

  4. I dunno, man. BANS is a dying platform. I don’t think they are going to find a buyer.

  5. I guess they finally gave up and realized that they will not be able to restore’s BANS’ reputation and income. They must be kicking themselves for not trying to sell back when BANS was doing better. Now they will get significantly less in a sale.

  6. Lego Death Star,

    It’s a pretty big investment any way you look at it. They might have to take less than $200k, a lot less.

  7. The reputation has def killed the platform and now a change in ownership is not going to help the new owners (if they can find one).

  8. I have developed a BANS alternative and am running a couple sites with it now. One of my sites is http://www.abercrombiegear.com/ I would like to get feedback on the site and program. What features are you looking for?

    -Tom
    http://www.edisonave.com

  9. Any thoughts on whether BANS will be further developed if it gets new owners?

  10. At $500,000 it sounds like a steal, but it is not worth nearly as much as it used to be. They obviously made some mistakes along the way that cost them dearly.

  11. The price seems a little high if this years profits have dropped off like you said. It may still be a viable investment if you have good ideas on how to take it forward though.

  12. Hey Alan,

    This was something that everyone of us knew that will happen. BANS has a glorious time in the online market and the degrading profits of BANS, gave a clear sign of this sold out in the beginning of this year.

  13. Ya i saw this on flippa when i was roaming through sitepoint. they are not even asking that much for the website too that is funny would have asked millions of dollars for it.

  14. Hi alan, as what you’ve said above, if it’s abused by spammers well there’s a little chance of getting it purchased. Even if a new user will take over, it’ll be a hard for him to handle this spammers because they will be abusing it over and over again.

  15. Any updates on this? Have they found a buyer yet? $500K is still a nice chunk of change if they can manage to sell. There’s gotta be someone who can turn things around.

  16. I would also like to hear more about this if anyone knows anything.

  17. F*ckin spammers ruin all our businesses sooner or later

  18. I think BANS would not be for sale if it was not for the hackers. Perhaps they were the competition!!

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