[TimPC]

A product with $6000 in revenue selling for only $12,500 seems crazy to me. Why were you so eager to get rid of it?

[fxtentacle]

Most likely, they booked some advertisements to push revenue but didn't honestly account for the ad expenses. I've seen that way too many times with Indie products that they brag about large revenue numbers and "forget" to mention that profit margins are negative. I remember once hearing about a start-up that resold baby diapers at a loss. Obviously, they were easily able to scale up customers and revenue ...

[fxtentacle]

found it:

"Critically, he did not understand margin. At the end of December when things were getting truly desperate, he said to me “Phil, just bring me a forecast that shows how much we need to sell to break even.” He did not understand, after three years of negative margin, that increased sales resulted in increased losses."

from Ecomom Post Mortem by Philip Prentiss

[beAbU]

It's the whole "we're selling $1 bills for 50c, but we're not worried, we'll make up for it by scaling up."

[Arainach]

Revenue isn't profit.

[prawn]

Might only take months for traffic/attention/fad to completely die off, or a rival to supplant it.

[tonyedgecombe]

I think such small businesses are really hard to sell. It may be the purchaser just wanted the domain.