Selling a website and creating a rebranded similar site allowed?

If you think you can tell potential buyers you have multiple sites in the same niche and feel they wont want at least an option to have them all included and you on a non compete good luck.

But either way you have still fucked your rep on here.
 
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GringoMonkey said:
If you think you can tell potential buyers you have multiple sites in the same niche and feel they wont want at least an option to have them all included and you on a non compete good luck.

But either way you have still fucked your rep on here.
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Dude I've never sold a website before, never heard of "non-compete" clauses. That's why I was asking here. I got it. If I'd have to worry about my "reputation" each time before I ask a newbie question here, I possibly would still don't know the very basics of SEO, web dev or whatever...
 
supermex said:
I would simply mention to potential buyers that I have multiple sites and want to sell one of them.
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Everything needs to be in writing, a vague mention of 'other sites' is not legally binding.

If your buyer wants a non-compete clause, the contract would specify exactly what you're not allowed to do, which in this case would be building or running sites in the same broad niche. Whether you have other already-built sites or not is irrelevant, if the contract says you can no longer work in that niche, it becomes binding for all your projects.

If the contract directly specifies that you retain the option to continue working in that niche, then you would be free to build and sell clone sites, but including such a clause will severely impact the value of the business.

Given the value of the site, you really should be talking these things over with a small business lawyer.
 
supermex said:
Dude I've never sold a website before, never heard of "non-compete" clauses. That's why I was asking here. I got it. If I'd have to worry about my "reputation" each time before I ask a newbie question here, I possibly would still don't know the very basics of SEO, web dev or whatever...
Click to expand...

It is not a question of a newbie understanding the legalities or not, or whether you sold a website before or not.

You have damaged your rep by demonstrating you think it is acceptable behavior to sell something to someone and then become their competitor and asking if it is ok to cheat a prospective client.

That shows you as a person and it is your complete lack of empathy or customer care that damages your rep not your lack of business experience.
 
Bro providing you have nothing in the contract that implicitly states you will not do such a thing then you are 100% free to do anything you want

Its a little unethical/immoral if you're empathetic towards the person that bought your original site but business decisions are rarely affected by ethics or morals. In fact the scenario you describe happens not only online but also in the real world quite often

A perfect example is a take away in my town - some greek guys opened up a take away and over a year or 2 built up a good customer base with good food and prices, then they sold the business and reopened another takeaway a month later a few streets away from the original, selling the same food...

Nothing illegal about that at all (providing theres nothing in the contract)... just very shrewd business
 
GringoMonkey said:
It is not a question of a newbie understanding the legalities or not, or whether you sold a website before or not.

You have damaged your rep by demonstrating you think it is acceptable behavior to sell something to someone and then become their competitor and asking if it is ok to cheat a prospective client.

That shows you as a person and it is your complete lack of empathy or customer care that damages your rep not your lack of business experience.
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Man its a dog eat dog world, he's doing nothing whatsoever wrong. If the purchaser of the original business cant compete then thats his problem. Also if he's too green to know he should set some kind of clause in the purchase contract that prohibits the seller from doing such a thing, again its the buyers problem

.... OP dont listen to this guy
 
supermex said:
Dude I've never sold a website before, never heard of "non-compete" clauses. That's why I was asking here. I got it. If I'd have to worry about my "reputation" each time before I ask a newbie question here, I possibly would still don't know the very basics of SEO, web dev or whatever...
Click to expand...

If you are really earning 10k per month from this site, it would be prudent to seek professional advice, i.e. a solicitor/lawyer and find out what can and cannot be done legally, now or in the future. The fact you are asking here does not bode well for you or seem believable to us.
 
Ultimately this is your choice about contracts and business ethics, you need to decide where you position yourself on the ethics side of that.

@Nomas doesn't feel you should have any business ethics so long as what you do does not breach contract and your rep doesn't matter because who cares about long term. To use his Greek restaurant example, I doubt they will be able to sell the second one, because of what they did after selling the first.

My experience is you are not going to find to many people who will pay $300K plus for a site and so cheat them once and you will not do business with them again. You clearly have skills, but if you fuck your rep in the industry on your first sale you will find it difficult to build a long term business in it.

So there you have 2 sides of an argument. Pick one.
 
GringoMonkey said:
Ultimately this is your choice about contracts and business ethics, you need to decide where you position yourself on the ethics side of that.
Click to expand...

Nonsense amigo, the points you made are barely valid

Businessmen, hedge fund managers, corporations, conglomerates, chemical companies, the tobacco industry, president trump etc are the most unethical and immoral entities ever to exist... are you really trying to say that all the above act within ethical and moral guidelines? Of course you arent because thats not how business or business people work... they are the most corrupt/egregious entities on the planet. So why are you trying to impose strict moral/ethical guidelines on the OP with the facade that thats how the world operates?

You write...

GringoMonkey said:
@Nomas[/USER] doesn't feel you should have any business ethics so long as what you do does not breach contract
Click to expand...

No I dont feel that, in fact I feel the opposite, but unfortunately the reality is that is not how the world is. Business is a cut throat world and if you arent sharp as a razor you will get your throat cut, thats just how it is

More nonsense...

GringoMonkey said:
My experience is you are not going to find to many people who will pay $300K plus for a site and so cheat them once and you will not do business with them again.
Click to expand...

The person that bought the first business is never going to buy the second business anyway, it doesnt matter in the slightest what the 1st purchaser thinks about you...

If you build a successful business you will have zero problems selling it, there are people looking to buy successful businesses every day, saying that you will be unable to sell a profitable business because you sold 1 before and opened another similar 1 is ridiculous and not true
 
Nomas said:
Nonsense amigo, the points you made are barely valid
The person that bought the first business is never going to buy the second business anyway, it doesnt matter in the slightest what the 1st purchaser thinks about you...

If you build a successful business you will have zero problems selling it, there are people looking to buy successful businesses every day, saying that you will be unable to sell a profitable business because you sold 1 before and opened another similar 1 is ridiculous and not true
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@Nomas The op is not a multi-national conglomerate or running for president of the USA etc, he is a 21 year old guy in Germany trying to flip a small website and you are suggesting he behaves like that, because that's what the big boys do. Do you bring that approach to every deal? How many small websites have you sold with that approach?
 
GringoMonkey said:
he is a 21 year old guy in Germany trying to flip a small website and you are suggesting he behaves like that, because that's what the big boys do.
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The site is apparently bringing 10K monthly profit, I don't think anyone would consider that "a small website".

This isn't a used car on Craigslist, this is a sale in the same price range as a house. If the sale goes badly, the courts could rule against OP for life-ruining fines and damages, not to mention potential criminal charges if the buyer can prove intent.

Something like this needs to be handled by an experienced lawyer, not a bunch of semi-anonymous commenters on a marketing forum.
 
GringoMonkey said:
@Nomas The op is not a multi-national conglomerate or running for president of the USA etc, he is a 21 year old guy in Germany trying to flip a small website and you are suggesting he behaves like that, because that's what the big boys do. Do you bring that approach to every deal? How many small websites have you sold with that approach?
Click to expand...

It doesnt matter who he is dude, the practices of small business owners are no different to the large ones. I used examples of large companies and conglomerates to demonstrate that the unethical actions go all the way to the top - that didnt mean they arent happening at the bottom. Business is business, whether large or small the game is exactly the same

What the OP is contemplating doing is nothing new, nothing illegal and nothing in comparison to the shady business practices that go on every single day

If you think other people in business are gonna treat you with kid gloves and high moral and ethical code then you're in for a big shock... they'll eat you alive
 
Stavro said:
The site is apparently bringing 10K monthly profit, I don't think anyone would consider that "a small website".

This isn't a used car on Craigslist, this is a sale in the same price range as a house. If the sale goes badly, the courts could rule against OP for life-ruining fines and damages, not to mention potential criminal charges if the buyer can prove intent.
Click to expand...

Absolute bullshit brother. If they can prove intent to do what... open a rival store? Like openeing a rival store after you sold a similar business is illegal? You're talking out your ass dude
 
@Nomas You seem to believe that all business is either you do the fucking or you get fucked no matter how big or small. You didnt actually answer my earlier question how many small websites have you sold with that approach?
 
GringoMonkey said:
@Nomas You seem to believe that all business is either you do the fucking or you get fucked no matter how big or small. You didnt actually answer my earlier question how many small websites have you sold with that approach?
Click to expand...

Of course thats what I believe, are you trying to tell me business isnt a cut throat world? Any business will do anything to put a rival business out of action. What do big market leaders do to small businesses if they see them as a threat? They lower prices so the new business cant compete and has to stop trading. If they cant do that they just buy the small business... either way they eliminate any and all threats. Business is war, the only rules are the ones dictated in law or contracts, anything and everything else can and will be used. Hacking, spying, malware, price wars, bribes, name tarnishing

You think business is nice and moral and ethical? You suggest OP shouldnt open a rival store after selling a similar business because it isnt ethical?

Hehe
 
Nomas said:
Absolute bullshit brother. If they can prove intent to do what... open a rival store? Like openeing a rival store after you sold a similar business is illegal? You're talking out your ass dude
Click to expand...
Selling a business generally carries an implied warranty that the seller will not use insider knowledge to compete with the buyer. If no such warranty exists, that fact must be outlined in the contract.

OP is making ten thousand a month in profit, and a consultation with a lawyer would cost a couple hundred, at most. Given the severe consequences of getting it wrong, getting proper advice from actual experts on the subject is a worthwhile investment.
 
How exactly would the new owner know that a new website out of hundreds out there belong to you?
 
Stavro said:
Selling a business generally carries an implied warranty that the seller will not use insider knowledge to compete with the buyer. If no such warranty exists, that fact must be outlined in the contract.
Click to expand...

But if you look back at my 1st post here you see I said 'providing it isnt in the contract'. Of course if its in the contract then its illegal, that isnt in debate. But if it isnt in the contract, then it isnt illegal. You say 'selling a business generally carries an implied warranty'... so you're saying sometimes it does and sometimes it doesnt? lol... i've never heard of that law before but if it does exist i'dd like to see it

Stavro said:
OP is making ten thousand a month in profit, and a consultation with a lawyer would cost a couple hundred, at most. Given the severe consequences of getting it wrong, getting proper advice from actual experts on the subject is a worthwhile investment.
Click to expand...

If theres a sale of a business that size and there isnt a lawyer involved then i'd be very surprised. I highly doubt someone will spend +100k without getting any legal documents including a contract

In it the terms will be defined. If it says he isnt allowed to open a rival business then he isnt, if it doesnt then he can do whatever he wants
 
darkpsycho said:
How exactly would the new owner know that a new website out of hundreds out there belong to you?
Click to expand...

He wouldnt, but even if he could find out OP could just register the new site in the name of a relative or trusted friend, eviscerating any and all legal obligations
 
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