buying and selling websites

Lessons Learned from Several Million Dollars Worth of Site Acquisitions

Chuck MullinsFounderCashForYourSite.comChuck@CashForYourSite.com

Questions to Ask Yourself

Why buy and sell websites? How much is my time worth? Do I want a Job or an Investment? What kind of return on my capital investment do I

need? What size deal makes sense? What kind of risks does the site have? What are my plans for this site?

Why Buy or Sell Websites

Know your reasons for buying: Cash flow Asset appreciation Synergy Untapped potential In-house link network

Why Buy or Sell Websites

Know your reasons for selling: Cash out Redeploy capital Declining market Focus on core business Bored

How Much is Your Time Worth

$100k a year / (52 weeks x 40 hours) ≈ $50 per hour.

Don't work for less than you are worth:Website Monthly Income = $1,000Hours Required Per Week = 10 $1000 / (4 weeks x 10 hours ) = $25 per hour Website Monthly Income = $10,000Hours Required Per Week = 10$10,000 / (4 weeks x 10 hours ) = $250 per hour

Do You Want a Job or an Investment

Site For Sale : $3000 a month pure profit.

Would you buy this site for a 6 month multiple @ $18,000?

What are the real costs in terms of time?

Hourly Pay = $50$50 x (4 weeks x 40 hours ) = $8,000$3000 / (4 weeks x 40 hours ) = $18.75 per hour

Hours Required Per Week = 40

What Kind of ROI Do You Want

Typical investment: CD Rates 1% Bonds 2-6% Stock market 7-12% Real estate 5-14%

Why do these investments pay different rates of return?

What kind of return do you want?

What Size Deal Makes Sense

$50 x 40 hours x 12 months = $24k per year.

$50 x 40 hours x 12 months = $24k per year.

Total return needed on $500k investment would be $149k or a 29.8% time and risk adjusted return.

The larger the deal, the less your time requirements impact the return.

$100k x 25% = $25k per year

$500k x 25% = $125k per year

Total return needed on $100k investment would be $49k or a 49% time and risk adjusted return.`

Is The Investment Worth The Risk

How do you evaluate the risk of an investment?

Which company looks the most risky to you?

Price evaluation and risk are two very different things.

Is The Investment Worth The Risk

Has the site been affected by Google updates?

Is The Investment Worth The Risk

How much competition is there? What are the barriers to entry? What kind of SEO has been done?

White hat vs black hat

Is The Investment Worth The Risk

What is the traffic mix? Organic traffic Paid traffic Social traffic Direct traffic Referral Affiliate

What Are Your Plans For The Site

Get a detailed plan and time line before closing on a deal Migration

Backup website Transfer domain Update income sources Take/transfer accounts Transfer website

Operation Who, what, when

Expansion Who, what, when

How to Transfer the Site Communication is Key

Agree on specific terms and a transition plan before you agree to purchase the site.

What is your pain point? High value vs. low value sites

Prepare a contract detailing the terms of sale: Time frame and consequences for transfer Payment Terms Seller Support Non-Compete Non-Disclosure Non-Performance

How to Pay For a SiteSend Payment First:• Escrow.com• Paypal.com

After Transfer of Domain and Files in Hand:

**Warning these methods have little to no recourse!• Check• Cash• Wire Transfer• Western Union

Where To Buy and Sell Websites

Auctions - Flippa.com - Ebay.com

Broker - QuietLightBrokerage.com - Latonas.com - WeSellYourSite.com - AcquisitionsDirect.com - WebsiteProperties.com - W3BusinessAdvisors.com - WebsiteBroker.com

Where To Buy and Sell Websites

Market Place - CashForYourSite.com - BuyingandSellingWebSites.com - BizBuySell.com

Miscellaneous - Craigslist - Forums - Contact Site Owners - Networking

Due Diligence Tools (F/P) - OpenSiteExplorer.org / Moz.org (F/P) - SEMRush.com (F/P) - MajesticSeo.com (F/P) - SpyFu.com (F) - BannedCheck.com (F) - SeoMastering.com (F) - YouGetSignal.com (F/P) - DomainTools.com (F/P) - CopyScape.com (F) - Alexa.com (F/P) - Compete.com

F = Free P = Paid

Due Diligence Tools (F) – Archive.org (F) – BuiltWith.com (F/P) – Topsy.com (F) – TradeMarkia.com (F) – SocialMention.com (F) – Google Trends (F/P) – WhoRush.com (F/P) – ReverseInternet.com (F) – SpyonWeb.com (F/P) – KeyWordSpy.com

F = Free P = Paid

Additional Due Diligence

Read the comments of other prospective buyers Research the seller not just the company Ask questions that you have already researched and know the

answers to Ask seller to add you to their Google Analytics account Ask questions about potential revenue streams Ask what plans the seller had for the business moving forward Ask seller to verify all claims with documentation Ask about anomalies Ask about skills and time required to operate the site Ask, Ask, Ask!!!

Lessons Learned from Several Million Dollars Worth of Site Acquisitions

Chuck MullinsFounderCashForYourSite.comChuck@CashForYourSite.com