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Hey all,
I have an opportunity to purchase a few different websites that are already established and generating revenue. Like anything, there are several questions to ask and research to conduct. I'd like to put together a little list of what may constitute an appropriate purchase in regard to websites.
Please feel free to add to this.
All the best,
Cory
I have an opportunity to purchase a few different websites that are already established and generating revenue. Like anything, there are several questions to ask and research to conduct. I'd like to put together a little list of what may constitute an appropriate purchase in regard to websites.
- Is it a viable business model?
- Do you obtain any existing inventory or customer contracts with the purchase?
- Does the site pass your feasibility test? <(See example)
- How much revenue is the site making? (Ask for verification statements verified by a CPA)
- Does the business incur any expenses?
- What changes can you make to reduce overhead?
- What can you do to increase profit? How long would it take?
- How long has the site/business been established?
- What is the annual % of revenue growth? That is, how much more is it making over the previous year?
- How many visitors does the site have a day? (Ask for logs, records, additional stats, etc.)
- What are the site's popularity rankings on major sites?
- Has the owner done anything to increase these rankings?
- Is the site featured elsewhere? (Blogs, Web sites, magazines, etc.)
- How many other sites link to this site?
- If the site sells a product, is there a dedicated supplier? Other supplier sources?
- If it's information related or a service, do you possess the skills to duplicate it?
- Has the sites reputation been spoiled? Unhappy customers?
- Does the site check out on BBB? <(Link provided)
- Is the business license current?
- Are taxes current?
- Is the URL expired or near expiring?
- Is there a valid SSL certificate to protect transactions?
- Are there any software/hardware included with the purchase?
- Do you gain any proprietary software with the purchase?
- Why is the owner selling? Are they tired or bored? No time to maintain? Desperate for money?
- Can you create a similar site and results for less than what your purchasing it for?
Please feel free to add to this.
All the best,
Cory
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