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Would this work?

Discussion in 'Site Flipping' started by Grinch, Jan 27, 2012.

  1. Grinch

    Grinch Regular Member

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    Say I bought a website for cheap sell it for more and make some $$$ is there anyway I make even more money off of people visiting the site,even thought I sold it, like a 10% commission or something ?





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  2. bryanon

    bryanon Executive VIP Premium Member

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    Sure you can. Many buyers are interested in agreements where, in exchange for a lower downpayment they pay the seller a certain percentage of earnings for a defined amount of time.

    That said, in case of low-value (sub-$500k) deals financing deals like this are relatively pointless, as most buyers and sellers alike prefer to keep deals simple as opposed to entering into long term contracts that can go south in a number of ways.

    Another thing to consider when doing deals like this is the buyer's willingness and knowledge to maintain the site properly so that it wouldn't lose its revenue. Very often, again in case of low-value deals, buyers tend to forget about the sites they buy completely, as a result of which the revenue can tank in a few months. For this reason it's extremely important to define the buyer's responsibilities and include clauses in the contract that would protect you as the seller in case the buyer fails to maintain the site properly and therefore loses a part or all of its revenue.
     
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  3. poweronics

    poweronics Jr. VIP Jr. VIP Premium Member

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    That was really informative. This aspect of flipping business (deals financing deals) is helpful for newbies.