In some markets $5 a click is cheap. Conversion rates are going up. Well run internet businesses have low overhead and are getting bigger cuts from merchants as their businesses scale. Domain Name Wire posted that throughout the first half of this year CreditCards.com earned $4.64 per visitor:
Internet Real Estate Group sold the domain to Click Success in 2004 for 'only' $2.75M. Daniel H. Smith pocketed $97.7M from the sale to an Austin Ventures-backed group in 2006. The purchase by the group in 2006 from Click Success was financed partially with debt from American Capital Strategies (NASDAQ: ACAS).
CreditCards.com's S-1 filing is a treasure trove of information about the company's traffic (they actually have more than one domain driving traffic) and earnings per visitor. In the first half of this year, the company received 5.899M visitors and earned $4.64 per visitor. The traffic was up only slightly from the same period last year, but revenue per visitor increased 46%:
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