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Buying web sites - doing due diligence

Discussion in 'BlackHat Lounge' started by edc, Jun 13, 2009.

  1. edc

    edc Regular Member

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    I know a lot of the tricks to make a web site look like it is more than it is, but anyone have any experience knowing what to look for to make sure that a web site is the real deal? I would like to buy some WH web sites with cash flow, and don't want to get rooked.

    Mods - feel free to move this if there is a more appropriate place for it. Thx.

    -e-
     
  2. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    kurt christianson did a 4 part lecture on how to buy web sites several years ago.
    worth checking out.
     
  3. edc

    edc Regular Member

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    Thanks for answering. Do you have a link to where I might find these, or can you point me in the right direction? I searched high and low and couldn't find them for the life of me. Thx

    -e-
     
  4. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    it was part of an email course.
    i have it saved on my account.


    Buying Web Businesses (Part 1)

    F.A.Q's

    Q: "Why are you willing to reveal these secrets and let us in on this?"

    A: I only have the time, energy and desire to do one or two of these deals per year.

    The rest of my time is taken up with speaking at seminars on internet marketing, consulting for a few clients that I really enjoy working with, and spending some serious time relaxing, playing video games, and going to the movies.

    Honestly, there are too many good opportunities out there, I could never take advantage of even a fraction of them.

    Q: "Can you give me an example of a profitable business that's been featured on the site?"

    A: Here's one that was offered, "Driving Costs": This is a niche info-product that explains how to cut your driving costs to zero by strategically buying your vehicles below retail, keeping them for 12 to 18 months, and then selling them at retail.

    This course sold for around $17. and they had a decent conversion rate of 1.5% on the sales copy. Making 1 to 3 sales a day. No back end, but a very good front end product.

    I believe it ended up selling for $900. total. A great price considering that the business was grossing at least one sale per day x $17. x 365 = $6,205. a year.

    Q: "I'm just starting out and I don't have a lot of cash. Will I need a lot of money to buy these businesses?"

    A: True, some of the businesses that I feature will be between $20,000. and $100,000. However, I often find sites that you can get into for $1,000. or less.

    You might want to drop me a line about an interesting niche site that I bought a year ago that nets me about $300. a month, I got it for exactly $1,000.

    Q: "How will I know how to fix up a website?"

    A: Much of this is covered in detail inside the site, and if it isn't I can easily point you to hundreds, if not thousands of resources about HTML design, and internet marketing in general.

    This is truly the easy part, most of the fixing up that we do is common-sense, no brainer internet marketing like that taught by the gurus, Corey Rudl, Marlon Sanders, Declan Dunn, Jonathan Mizel, Terry Dean, and Ted Ciuba.

    Q: "Isn't it risky to buy a business?"

    A: It can be, if you don't watch your P's & Q's as the saying goes. That's what this site is all about, teaching you the techniques and strategies that you must know to be successful at this.

    My formula calls for buying a website for no more than 4 to 6 months of net profit, where possible. Now think about this... If you've done your homework, and verified all of the income derived from the website, there is NO risk!

    Why? Because you could simply hold the website "as is", do the daily routine of processing the orders, and make back your entire investment in only 4 to 6 months.

    You can simply sit on the site and do nothing to improve it and still make anywhere from 16.6% to a 25% return per month!

    Q: "How can I verify the owner's claims?"

    A: Easy, you can have them fax or scan bank account records, merchant account records, Paypal accounts, whatever. This is critical, and any seller who's being honest and forthright will gladly provide this type of information.

    Q: "Do you look at other sources for businesses besides eBay?"

    A: Yes, eBay is a gold mine, but I find plenty of other great web businesses through more traditional methods, like business brokers, online and off. I also scan discussion boards, and I have serious relationships with a lot of people 'in the know' so to speak.

    Q: "Why would anyone sell a business cheaply?"

    A: People simply don't value what they have, plus they often don't know anything about marketing, so they have no idea how to improve, expand, or super-charge the gold mine they're sitting on!

    Q: "If it's sold cheap, doesn't that mean it's a dog?"

    A: Not always. It's like Real Estate, sometimes people just need to sell, and fast.

    Q: "Do you have to be a tough negotiator?"

    A: I'm the worst negotiator in the world, and I've simply developed ONE questioning technique that I always force myself to use, and it works like magic.

    It may sound a little trite, but that's what it boils down to, one simple questioning technique that I use over and over... I reveal the exact technique inside the site!

    Kirt Christensen
    www.buyingwebbusinesses.com


    Buying Web Businesses (Part 2)

    I'm going to show you exactly how many great businesses are currently for sale, in one location. I actually search 20 different locations to spot all of the good deals, but just showing you three locations will give you an idea.

    Go to these URL's:
    http://www.buysellwebsite.com

    http://www.businessesforsale.com

    http://listings.ebay.com/aw/plistings/list/category11759/index.html

    This is eBay's "Businesses for Sale" category. As I write this, there are over 4,964 businesses listed for sale. Unfortunately most of the listings are going to be for unprofitable sites, like these:

    "Cloned Sites" made from templates that have zero traffic and are being sold by the hundreds.

    "Website Design" sites. One guy claims anyone can make $5,000. a month by buying one of his "Cookie Cutter" templates and then listing them at www.elance.com to get web design jobs.

    "PPC Search Engine" websites. Dime a dozen, basically template websites. Again, zero traffic.</ul>
    There are a lot of junk sites that need to be sorted through. But in the midst of all that garbage I can always find at least 3 to 5 websites per week that are pure gold. Next issue I'll discuss exactly what to look for.

    Kirt Christensen
    www.buyingwebbusinesses.com


    Buying Web Businesses (Part 3)

    Today let's discuss a few of the critical factors for selecting a website business that you'd like to purchase.
    First off, you're looking for hidden gold, so be prepared to wade through plenty of dirt to find it.

    You want to buy websites that match up with some, or all, of the following categories:

    Sells a downloadable product (software, e-book, course).

    Has a High Conversion Ratio, BUT the copywriting on the site really isn't that good. (Conversion ratio is simply the number of sales divided by the number of visitors).

    Can be totally, or almost totally, automated and no longer need any day-to-day work.

    Has an exclusive, unique, or undermarketed product or service.

    Has a high "barrier to entry" for competitors. It should be very hard for people to duplicate your site.

    Has some sort of recurring billing system whereby the site owner works once but gets paid on an ongoing basis.
    We're not looking to buy every single business that comes our way, we can afford to be VERY picky, remember that, don't fall in love with any specific site.

    Next issue I'll describe how to revamp a site and sell it.

    Kirt Christensen
    www.buyingwebbusinesses.com


    Buying Web Businesses (Part 4)

    Previously we explored which attributes make a web business most profitable. This time we're going to cover how to improve a web business and resell it for profit.

    First off, you should be familiar with basic internet marketing practices. If you're not familiar with them, study a few e-zines and courses first.

    What you're looking to do is implement "no brainer" internet marketing techniques that'll quickly sky-rocket the profits of your new acquisition, with little or no risk.

    Here's a quick check list:

    Can the site's copy be improved?

    Does the site have a USP (Unique Selling Proposition) or is it a typical, "Me Too" type of site?

    Does the site capture the names and the e-mails of visitors?

    Are there similiar "back end" products or services that can be offered to these same customers?

    Can you write a sales letter that'll draw customers?

    Is there a follow-up autoresponder for inquiries?

    Is there a 30-day moneyback guarantee on the product?

    Can you increase the price of the product? Etc.

    Kirt Christensen,
    Buying Web Businesses
     
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    Last edited: Jun 13, 2009