Tip of the day: Don’t dismiss sites that have high revenue but no profit.
And why is that? Are we ultimately only concerned about profit? Well yes we are, but when we see a site with a lot of revenue, or any business for that matter, we know that a couple of things might be going on.
One is that many high growth companies invest their profits back into the business. So their revenues are high but often they show very little profit or no profit at all. And sometimes they have losses.
Secondly, even companies who aren’t intentionally trying to reinvest their profits into their business but have high revenue still have a lot to work with. Don’t ever dismiss sales. If companies are able to generate a lot of sales, almost always there is a way to drive profit out of those sales.
So keep those things in mind when you’re looking at businesses with high revenue but low profit. Don’t dismiss them entirely.