Ep 34: Kevin Jourdan, Website Marketplaces in Europe

  
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In this episode of the Website Investing podcast, Avi talks with Kevin Jourdan about how he built DotMarket.eu to buy and sell businesses online in the French market. They discuss the similarities and differences between the French and English markets, and how the French market lags behind the US by 1-2 years. 


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📝 Show Summary & Insights

Starting Out

  • Kevin built his first website in 2012. He learned from NichePursuits.com and watched a bunch of courses, gaining valuable tips and insights along the way. He went on to build and buy various niche websites.

  • After buying and selling a few websites on Empire Flippers, he noticed that there was a big opportunity to create a similar platform in France. This led to the birth of DotMarket.eu for the French market.

The French Market

  • Kevin says that it’s easier to rank websites in France because there is less competition there.

  • Though the English and French markets are very similar, the French market is often late in terms of content resources. Some English articles are only translated to French a few years after they were originally published. 

  • In terms of monetization, the English and French markets are pretty much the same, but options in the French market are limited. For example, it is difficult to find recurring affiliate programs in many niches. 

  • Only a few niches allow for recurring affiliate programs, such as casinos and dating. 

  • There is little competition if you want to sell online. Amazon is the only way to sell in France, as they have the best conversion rates and reach. 

  • When choosing a niche in France, one effective strategy is to look to the US market. France is usually slower to adopt, and many business ideas from the US pop up a year or two later in the French market.

DotMarket Strategy

  • DotMarket.eu was created to make it easier and safer for buyers and sellers to meet up. It boasts vetting and valuation processes, contracting, and migration processes. 

  • DotMarket.eu is tailored to buying and selling businesses online; including websites, e-commerce, and SaaS marketplaces. 

  • To set it up, they had to find the right balance of both buyers and sellers. This was quite difficult, as they needed to convince and educate French sellers that selling online is possible. Many owners didn’t even know that they could sell their websites. They continue to educate many French website owners about selling as a viable exit option.

  • DotMarket.eu just reached the 7-figure mark in valuation of websites sold.

Valuation and Sale

  • To list a website on DotMarket, the website must be valued at a minimum of €10,000 for affiliate and content sites, and €25,000 for drop shipping and e-commerce sites. They do not accept starter sites, sites that have been hit with a penalty or sites that generate profit mostly from ads. 

  • It takes an average of 45 days to sell a business on DotMarket, although SaaS and e-commerce businesses can take 3-4 months to sell. 

  • Content sites are popular and sell quickly, sometimes within 48 hours. 

A Growing Market

  • A lot of sites in the French market are made by people who did not consider selling them (or even know that they could). These sites don’t have the same optimization strategies in place when compared to a site owned by someone who was looking to sell it from the get-go. 

  • DotMarket's business model charges the buyer 10%, and the seller 3%.

  • DotMarket has partnerships with Flippa, MicroAcquire, and other platforms. Other marketplaces help supply buyers for businesses listed on DotMarket that are more difficult to sell. In return, DotMarket provides listings for French and European buyers on their platforms. 

  • The goal for DotMarket in 2021 is to expand in the French market, and possibly open in the Spanish and Italian markets. In the future, they would like to open up in several other European countries too. 


Guest Info


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Cheers,

Juliet