buying and selling websites
DESCRIPTION
This presentation is from Affiliate Summit West 2014 (January 12-14, 2014 in Las Vegas, NV). Session description: Expanding your affiliate business through website acquisitions and sales? Our experts will provide detailed strategies for buying and selling websites guaranteed to maximize your revenue potential.TRANSCRIPT
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!!!
