Due Diligence!

Buyers beware! There are many webmasters on the web looking to make a quick dollar by flipping their websites. They build sites within a matter of weeks, drive traffic to the site within a matter of months & make a few dollars after the first year. They then turn to “investors” to buy in to the great opportunity they have for sale. On the surface, the website seems like it can make money and provide a return, but any keen buyer needs to do proper due diligence to uncover any holes in the offering. If a website has only been turning a profit for a couple of months, there are some key items to look out for to determine if the investment seems plausible.
See if the website has the potential to be profitable over a prolonged period of time.This can be done by asking a few simple questions to the seller. Where is the traffic coming from? Is the money being made from the sale of product? Ad revenue? Is it a subscription service? Is it a website based on a fad?
Every website that is offered up for sale will have different questions that will need to be asked, but just be sure to ask as many as possible. At the end of the day, if the seller wants to sell the website, they will provide the buyer with as much information as possible. So ask away!
In a proper due diligence period, one must not only look at the financial feasibility of the website investment. It is very important to uncover EVERYTHING about the site. How long has it been running for? What are the growth opportunities available? Who are the competitors? What are the competitive advantages of the website? Is there any contracted labor? What type of marketing is being done?

As professional e-business brokers, we deal with sellers all the time and know the right questions to ask to help out our buyers and to make sure we are dealing with legitimate websites as investment vehicles. A website broker will help tremendously through the due diligence process and will most likely provide key information that buyers would not have uncovered on their own. Conversely, any sellers that are not sure how to handle tough due diligence questions from buyers, can turn to a website broker at wesellyoursite.com for assistance.

Position your website to sell!

I receive countless emails from site owners who would like to sell their website. Many of them have a website that gets traffic and some even make money off of that traffic through ad revenue and the sale of products. The biggest problem that these site owners face is that they do not have the proper metrics and systems in place to position their website to sell for a profit. At the end of the day, a website is only as good as the sum of its parts, but when it is difficult to add those parts together, it is challenging for any prospective buyer to evaluate the business. When you cannot evaluate the business, you certainly cannot buy it and site owners are left keeping the site for themselves.

So how do you make sure that you position your website to sell? What metrics need to be tracked and what systems need to be in place to ensure buyers can evaluate your website effectively and make a realistic offer for purchase.

Here are some key tips to position a website to sell:

1) Financial Records

Keeping track of finances is by far the most important practice one needs to do to position their website for sale. Buyers want to know how much money is made, how much it costs to make that money & is the money being made sustainable over time. Monitor revenues, expenses and profits as accurately as possible. If possible, it is recommended to have those financial audited to ensure accuracy

2) Full Disclosure

When positioning a site for sale, make sure to have all your ducks in order with regards to current operations, business processes, client issues, analytics, etc. The worst thing that could be done is to have an interested buyer make a bid on a website after reviewing the financials and then have the buyer pull out because the seller of the website forgot to mention that a couple of its major customers are unhappy to do poor customer service. Whether the information provided to the seller is good or bad, it must be disclosed to ensure everything is out on the table and the buyer has a complete picture of the business.

3) Growth Opportunities

Buyers are interested in web businesses that have the potential to do more than what they are already doing. Make sure that the website for sale is scalable to account for potential growth. Identify key growth areas and put a plan in place to present to potential buyers.

4) Prospectus

It helps to be organized when selling a website. Creating a document that outlines the entire business, from start to finish, will give the potential buyers a complete picture of what they are considering to purchase. A prospectus would have the following things outlined:

- Finances
- Traffic Information
- Business Processes
- Growth Opportunities
- Company History

Site owners who simply put together what I have mentioned here will have a giant leg up on the competition. A broker can help even more if a site owner is organized and has the appropriate information ready for prospective buyers. It will save plenty of time and will increase the value of the website to ensure a higher selling price.

If you are a site owner and need help putting any of this information together, contact wesellyoursite.com and we would be happy to help you!!

What websites make the best investments?

So you are probably wondering what types of websites make great investments? There are so many sites out there that may look good or have unique idea or concept, but are they worth your time & more importantly, your money?

Websites need to be monetized properly in order for them to be considered a good investment. You need to see a steady stream of income coming in to make it viable. Sites can generate revenues in a number of ways. Here are just a few:

-Subscriptions for a service
-Pay Per Click Ads
-Product Sales
-Affiliate Marketing Programs
-Banner Ads

So what types of revenue streams make the best investment? Ideally you would like to have a combination of all of the above. Having recurring subscriptions in place combined with a solid marketing campaign that has several aspects to it would be an ideal situation.

It all starts with traffic. The more traffic the website generates, the more sales are made and the more ads are clicked on, etc, etc,. In my experience, websites with over 2,000 visitors per day can make excellent money via pay per click ads and affiliate programs, whereas e-commerce sites that sell products may only need 40-50 visitors a day as they are making money by the sale of the product itself and not on ads. In both cases, these websites are worth looking at as investments if they generate some profit on a monthly basis. Obviously the amount of profit differs from site to site and that will determine the investment amount. A website that profits $5000 per month may be worth upwards of $100,000 if that profit can be proven over the past couple of years. It really comes down to analyzing each website, figuring out where the traffic comes from, where the revenue comes from and to determine if the current revenue model can be sustainable over a longer period of time.

As a buyer, you should first figure out how much capital you have to invest, then go searching for websites that would fit within your range. At wesellyoursite.com, we can help you find a website that fits your budget. From $50,000 to $3 million, we have a business that may just be the right investment for you.

Why use a website broker to sell your website?

You may be wondering what the point is of hiring a website broker to sell your site. If you have sales skills yourself, is there really a point to having someone else do the work? The answer is yes. Website brokers do many things that help you get the most out of the sale of your website. Chances are website brokers will be able to get a higher price for the website you have for sale. They have a network of buyers and sellers and work out deals on a daily basis that benefit all parties involved. They may have buyers on mailing lists that you would not have access to yourself. These buyers invest in web properties all the time and represent excellent leads for your website. They also negotiate with these buyers which takes a considerable amount of time. Brokers are able to help close your website deal by structuring the financing of the sale, keep things confidential between you and the buyer, and provide drafts of documents such as contracts, letters of intent and purchase agreements.

At the end of the day, most website brokers do not get paid unless they sell your website. Therefore, there is no harm in testing the waters with a broker if they can potentially get you more for your website than you first thought.

At wesellyoursite.com, we are website brokers who constantly entertain offers from clients looking to sell their website and buyers looking to purchase a worthwhile investment.

Let wesellyoursite.com help you out and generate a return for the sale of your website.

Get your site sold, contact us today!!

Why is buying a website a good investment?

There are so many investment vehicles today that it is sometimes difficult to decide where to put your money to get the best return. Investments can come in the form of stocks, bonds, businesses, or even people.
When talking about buying a website as an investment vehicle, it is just like buying a business, but the website investment industry as a whole is still fairly new, so there are less hoops to jump through to get a decent website that produces a return.

We have been buying and selling websites for over 5 years and we know that websites with a good track record will produce a return for us. That is why we got into the brokering business. We cannot buy every money making website that comes by our desk. We have capital for sure, but we do not have the time to purchase everything we want and run them all successfully. That is why we line up interested buyers with money making website opportunities as an investment vehicle. It just made sense for us.

Websites can be great for long term or short term investing. The Internet is always changing and more and more people are coming online everyday. This makes this 24/7 global marketplace the largest market in the world and it only continues to grow. With a market so large and very minor barriers to entry, the Internet is a hotbed for investments that can turn huge profits in a short amount of time.

Here are the top 10 reason why buying a website make a good investment:

1- Low start up costs
2- Global marketplace that never sleeps
3- lower marketing costs than traditional mediums
4- Free promotions (organic traffic rankings, viral marketing, etc)
5- Low maintenance costs
6- Less staff than traditional businesses
7- Can easily automate your business and receive payments from people all over the world
8- Work from anywhere!
9- Market growth – Internet has more users coming online everyday…largest market out there!
10- Potential for exponential growth in a short amount of time

Let wesellyoursite.com help you find a website that makes a great investment for you!

Until tomorrow….

What makes a website worth selling?

Many people have approached our company asking us to sell their website. Some people have websites that were built 5 months ago, getting lots of traffic but not making any money. Other people have sites that have been running for years, make a lot of money and has a lot of traffic. And still other people have sites that have been running for quite some time with little to no traffic and also are not making any money.

So which scenario produces the highest return when selling a website? Well, the easy answer is that a site with lots of traffic making good money will produce the highest return when selling it. That being said, this is not always the case. Sites that make a lot of money in a short period of time usually draw red flags. We come across websites that all of a sudden are making $2000/month after only being up for 4 months. How is this possible? It could be because the site was linked in a very popular website, or that the content of the site is only popular for a short period of time (a website related to the 2010 Olympics is a great example). The truth is that sites like these are great for a short period of time, but is not a website that will sell for a large return.

If you want to make money from the sale of your website make sure that the following criteria are met (in most cases)

1) Have a lot of traffic to the website that can be proven over a 1-3 year span.
2) Have recurring revenue via ads, affiliate programs, selling content (digital or physical), etc. for at least the last 2 years
3) Proof of profit over the past 2 years
4) A solid domain name (the shorter the domain the better)
5) A solid business model that has the potential for longevity.

Now, you can still make money on your website if these criteria are not there. You will not get as much, but you can still recover some or all of the costs you incurred to build it. There are many people out there looking for turnkey website solutions. These solutions usually do not have any traffic or make any money, but if the site is built on a solid platform and the business model makes sense, they can be sold for some decent money. The actual amount of the sale really depends on the type of website being sold.

As well, if you have a website that has a lot of traffic but does not make any money, we can help you turn it into a site that produces an income. We have done that with many websites in the past and have turned websites that produce a 1000 visitors per day and make nothing, to websites that can sell for $500,000 after a year or two of $15,000 in monthly income. It is amazing what a solid marketing campaign can do to make a website successful.

Are you not sure what your site is worth or need help turning your website into a money maker? Have wesellyoursite.com appraise it for you and give you some guidance on how to make your website profitable. We will take a look at all the angles and give you a realistic figure as to what you can get for your website. Simply email broker@wesellyoursite.com for more information.

Welcome to our blog!

Thank you for visiting our brand new blog! You will find plenty of information regarding buying and selling websites online. We are website brokers that specialize in the sale of profitable websites ranging from $50,000- $3.5 million.

Check back here often to see what’s new in the industry. We hope to provide readers of this blog with up to date information about buying and selling websites, website brokers, structuring business deals, contracts, preparing your business for a sale, evaluating what websites are worth, and many other topics surrounding the sale of websites.

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