Advice for Buying an Existing Website
So, you’re in the market to buy a website? That’s great news. Buying online businesses definitely its advantages. For starters, buying a website is cheaper than what you would pay for a traditional brick-and-mortar.
Second, growing an already established site is much easier than starting and growing one from scratch, which requires a great deal of time and money. There are thousands of profitable websites for sale that are in search of ambitious owners just like you.
But there are a few things you should be aware of before heading into your new venture. Follow our advice and stay protected.
Know The Seller’s Reason for Selling
There are several reasons why people sell sites: either it’s not making money, it’s not a high priority of theirs and/or it’s not updated often enough. That doesn’t mean the website doesn’t have potential. If it’s not making money, maybe there simply isn’t a market for it. On the other hand, it could be a case of it just not having been run properly.
First of all, examine only sites that are in your budget. Once you’re in your price range, next comes due diligence. Perform a thorough examination of all sources of revenue. If you are buying a website based on traffic or visitors, however, review all of the site’s analytic reports. The higher the asking price, the more hard numbers you should be provided. If the seller can’t provide this, walk away.
Watch Out for Fraud
Not all online businesses audit their finances, so verifying that information will prove difficult. If you can’t be provided with authentic information, it’s best to stay away. Too many sellers have either been less than forthcoming, or in some cases, have provided fraudulent information.
If you aren’t extremely tech-savvy or don’t plan on having a webmaster handle some of the work for you, pay close attention to what kind of technical skills and know-how are required for site to operate.
Sign a Non-Compete Clause
The last thing you want is direct competition from the seller after you by his/her site. By signing a non-compete clause, you will be protecting yourself from that happening.
Change All Passwords
Once the sale is complete, you’ll want to not only get all of the passwords from the seller, but you should immediately change all the passwords to protect yourself from anyone who may have once had access to the backend.