A website sale can be the answer to someone’s Internet marketing dreams. However, I can think of no other business that has too many variables outside of the prospective purchaser’s control! I offer as an example this website for sale . Everything seems right about this deal with over $2 MILLION in revenue and $1.3 MILLION in cash flow. Selling for $3 MILLION is a great price because it is less than 3 times cash flow. For novices, that means it would take less than three years to earn your money back. However, that is where my joy ends with this sale. I looked down at the reason the owner gave for selling and it simply says “pursue other interests.” However, and before I go any further, IF you are considering launching, buying or KEEPING you’re a website, why not SKYROCKET your website traffic with what I call the Trifecta of website success. Check these tools out:
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It could be that the choices given for the sale when the ad was set up didn’t specifically say and this answer fits best, but I doubt it. If these financial numbers can be verified by a due diligence (which I doubt), anyone interested inwebsites for sale like these has a tough road ahead to keep such numbers going into the future of this business. Let’s face it, this is America and how many people who make $1.3 MILLION per year would just walk away to pursue other interests? Yes many examples can be given but this is a web business which can basically be set up (but not all) on auto pilot. Sales funnels are sales funnels regardless if the webmaster is making $50,000 per year or $1.3 MILLION. Sure the business would require a few more employees but I ask you who could ever get enough accurate information on the following issues to make a determination on if this was a great opportunity or not: 1. How could you be sure the seller wouldn’t take their email list(s) with them after the sale? How could you be sure they wouldn’t kill the business after purchase by informing their list that they are no longer the owners? A non compete clause couldn’t be enforced in cyberspace! The IRS can’t catch most of these businesses to make them pay taxes and you think a non compete clause on a border less business can be enforced? You may wonder if they were to pursue other interests what need they would have to keep an email list from this link building website. Folks, you are experts or at least interested in WordPress Platforms so at least think beyond the end of your nose. Someone who is interested in WordPress Themes would also be interested in SEO Services, WordPress Plugins, Web hosting and too many other things to list. Don’t you think this webmaster’s current list would be interested in other services the seller would offer in the future? NO ONE would be stupid enough to walk away from their email list like that unless they were retiring!
2. I don’t care if you don’t believe this but Link Building Services like these will become less and less relevant over the coming years. Google doesn’t like ANYONE controlling their search results the way link building services and software companies do. Even as I write this, Google are BLACKLISTING sites that do so. Remember there was a time when a 1 page Sales offer and squeeze page was enough to make money with Adwords by Google. Today, a website without content outside of these 1 pagers are being BANNED from Adwords. I know this because 4 years ago, I wrote a book to alleviate the problem for marketers and get their Adwords accounts UNBANNED. All I am pointing out is the reasons for this webmaster walking away from a monster money machine like this site are HIGHLY suspect. I promise you that there is a KEY DETAIL they will not list because if they let it be known, it will be a deal killer. Google is quickly moving to content rich sites (like this) and will reward those with tons of original content more than those with tons of links.
3. There is no way to ever complete accurate due diligence on a web business, NO WAY! Think about this, how will you ever verify all of the data from sales across the WORLD WIDE WEB? You may not know this but website traffic statistics can be FAKED as well as Adsense Earnings(Google).Pay Pal screen shots. Bank statements? Forget about it. The savvy marketer understand that they can set up NUMEROUS Paypal Accounts, Bank Accounts with direct revenue dumps and a whole host of TAX EVADING practices. This sort of tax evading once you acquire this web business will land you squarely in the cross hairs of the IRS. Let me be clear, I am not saying that is the deal with this particular website. What I am saying is that IF you want to acquire a web business, ask the owner to carry a portion of the note through seller financing for a few years. If the business is legitimate and they can back up all claims, they would do this in a heart beat absent other offers. But to pay cash out front for this sort of business is foolish. I have two brothers whom I love dearly but even if they were selling this website, I wouldn’t touch it with a 10 foot pole!
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