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How Do I Protect Myself When Buying A Website Outside Of Websites like Flippa?

Discussion in 'Business & Tax Advice' started by derpywizard, Jan 11, 2011.

  1. derpywizard

    derpywizard Regular Member

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    I've never bought a website before, be it on Flippa or anywhere. What are the things I should ask for and verify before sending payment to someone for a website? And how can I determine it's worth?


    Tips?
    Experiences?


    Thanks guys.
     
  2. Kickflip

    Kickflip BANNED BANNED

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    You should already KNOW a websites worth if you are trying to buy it. Why would you even consider buying a website if you aren't certain of the worth?

    As for protecting yourself, why not just get him to sign up with Flippa or something for the safety of both? If it is just a small sale, use paypal and file a dispute if he doesn't deliver the site as promised. Also ask for references from previous sales. Ask if he has any well known forum accounts where he sells things to check his reputation.
     
  3. Markbh

    Markbh Regular Member

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    The easiest ways to determine worth are:

    1. Monthly revenue
    2. Traffic
    3. Links and ranking

    To protect youself - use an escrow service.
    Ask for proof - for stats and earnings and check the page rank authenticity.
     
  4. Paranoid Android

    Paranoid Android Jr. VIP Jr. VIP

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  5. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

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    Flippa doesn't make anything more safe so that won't help. They are just a marketplace and offer no real protection to buyers. You still should be doing due diligence, regardless of where a site is listed.

    Due diligence has a lot of aspects and it's not easy when starting out for the first time.

    Here's a few things I would look for:

    Research his/her name on the net, whether it be forums, Facebook, LinkedIn. See if you can dig anything up. Generally if a person is open about their identity then it's a good sign.

    Verifiable stats. Use teamviewer (not 100% foolproof but close enough) to look at traffic and revenue. In the case of higher end sales, get notarized revenue proof.

    Further to the stats, make sure the traffic looks legit. It's quite easy to buy cheap traffic to inflate stats and disguise it as legit traffic.

    As KickFlip mentioned, references are a good one, just be careful of shills. Scammers usually operate in teams.

    Get a professionally written up contract for the sale. Make sure you are 100% clear on what you are getting and what is included.

    Escrow.com is a safe way to transfer funds. It's not entirely safe again, but pretty close. For large transactions, get a lawyer to handle the funds.

    If you can, go meet them in person. Obviously, this isn't always practical, but for bigger sales it's often advisable.

    Any questions? Hit me up!
     
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