How to Find and Buy Quality Websites
Most buyers don’t realize that very few of all website buyers are successful in buying a quality website. VotanWeb receives email form website buyers daily and the frustrations I hear from them are usually pretty much the same.
Buyers need to know how the game works when buying a website. It is a lot like finding that great job – it takes a lot of work and patience. Most website buyers are unprepared, unrealistic, and think they will easily find that perfect website. If you are thinking of buying a website, you need to carefully read and follow the points below to be successful.
To successfully buy a website you need to:
1. Have a one page “Acquisition Criteria/Resume” ready at all times - this info consists of the types of websites you are looking to purchase, what amount you have are willing to invest, how much adjusted net income you expect from the website you are buying i.e. return etc. Make sure you have your name, address, all phone numbers to be contacted at, email address, and fax number.
2. You need to understand as a buyer that most websites listed for sale have little or no value – you need to know this when you go searching. Searching for a website to buy is not like looking for a house to purchase. Houses may be overpriced, but most houses listed for sale have some inherent value. Most websites offered for sale have no value at all.
3. Take confidentiality agreements seriously. If you are going in with someone else to buy a website (like a partner) make sure you both sign and get it back to the owner immediately – don’t expect much information about the website without signing one. Keep all info about websites you look at confidential – you break the agreement and you will never have access to any other confidential information about any website on the internet. Of course, there are also legal ramifications in many instances.
4. Never ever tell a website owner these things: “Don’t worry I have plenty of money to buy a website – it’s none of your business”, “I’m looking at all websites for sale – I am not picky” – when website owners hear these comments and other nonsense from buyers they know you’re not a professional and they will usually pass on you. When it comes to quality websites, there are more buyers than sellers in the marketplace and it only takes one buyer to buy a website. Be open, truthful, and communicative with the website owner – it will pay off.
5. Make sure you are on the Email Alert program at VotanWeb - this system will email to you any new listings that match your search criteria. Websites in demand and priced appropriately usually sell within a few days. You need to know which websites come on the market for sale so that you may quickly act on the information.
6. Be prepared financially by getting pre-approved for financing (SBA etc.) and make sure you have your down payment liquid and ready to go. Have all the forms completed ready to go – Personal Financial Statement, Management/Resume Form etc. I can’t tell you how many times I talk with buyers and how they were aced out of a deal since they weren’t ready financially (i.e. they had to wait and pull the equity out of their home for the down payment, get their information together etc.)!
7. Go ahead and make offers on websites that interest you! Buyers who hold back and never make up their minds on deals are the ones who never buy. There are contingencies in purchase agreements that protect you. Making an offer on a website usually locks out other buyers while you do your due diligence.
8. Select your team of advisors, accountant for due diligence, attorney for assistance with contracts, financing sources, etc be ready with these professionals now so you don’t kill time looking for them while the seller selects another buyer since you weren’t ready to go!