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Buying and Selling Websites to Leverage Your Relationships
Questions to Ask Yourself
Why buy and sell websites?
How much is my time worth?
Do I want a Job or an Investment?
What kind of return on my capital investment do I need?
What size deal makes sense?
What kind of risks does the site have?
What are my plans for this site?
Why Buy or Sell Websites
Know your reasons for BUYING
• Cash flow
• Asset appreciation
• Untapped Potential
• Synergy
Why Buy or Sell Websites
Know your reasons for SELLING
• Cash out
• Redeploy capital
• Declining market
• Focus on core business
• Bored

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How Much is your Time Worth?
$100k a year / (52 weeks x 40 hours) ≈ $50 per hour
Don't work for less than you are worth:
Website Monthly Profit = $1,000
Hours Required Per Week = 10
Website Monthly Income = $10,000
Hours Required Per Week = 10
$1000 / (4 weeks x 10 hours ) = $25 per hour
$10,000 / (4 weeks x 10 hours ) = $250 per hour
Do You Want a Job or Investment?
Would you buy this site for a 6 month multiple
at $18,000?
What are the real costs in terms of time?
Hours Required Per Week = 40
How much are you worth = $50 per hour
$50 per hour x (4 weeks x 40 hours ) = $8,000 of your time
$3000 / (4 weeks x 40 hours ) = $18.75 per hour
Site For Sale : $3000 a month pure profit.
What Kind of ROI Do You Want?
1. Typical investment:
• CD Rates 1%
• Bonds 2-6%
• Stock market 7-12%
• Real estate 5-14%
2. Why do these investments pay different rates of return?
3. What kind of return do you want?
What Size Deal Makes Sense?
$100k x 25% = $25k per year
$50 x 40 hours x 12 months = $24k per year.
Total return needed on $100k investment would be $49k or a 49% time
and risk adjusted return.
$500k x 25% = $125k per year
$50 x 40 hours x 12 months = $24k per year.
Total return needed on $500k investment would be $149k or a 29.8%
time and risk adjusted return.
The larger the deal, the less your time requirements impact the return.

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The document discusses different types of landing pages: main site landing pages that are part of a main corporate website, microsite landing pages that are specifically designed for a single audience or purpose, and stand-alone landing pages for specific marketing campaigns. It also discusses determining which parts of a website are mission critical, examples of content that is typically not mission critical, identifying the intended audience of a landing page, desired conversion actions, and factors to consider when calculating the lifetime value of a conversion action.

Is the Investment Worth the Risk?
• How much competition is there?
• What are the barriers to entry?
• Are there one or more critical employees?
• Does the business rely on an outside source?
• Does the business exploit something?
• What kind of SEO has been done?
• Are the products/services evergreen or based on a trend?
• Are there pending changes to the law?
• Is the business seasonal?
Is the Investment Worth the Risk?
What is the traffic mix?
• Organic traffic
• Paid traffic
• Social traffic
• Direct traffic
• Referral
• Affiliate
Due Diligence Tools
• (P) - Centurica.com - Due Diligence Services
• (F/P) - SEMRush.com
• (F/P) - SpyFu.com
• (F/P) - Majestic.com
• (F/P) - Moz.com
• (F/P) - ahrefs.com
• (F/P) - Screamingfrog.co.uk/seo-spider/
• (F/P) - Deepcrawl.com
• (F/P) - ScrapeBox.com
F = Free P = Paid
Due Diligence Tools
• (F/P) - DomainTools.com
• (F/P) - DomainIQ.com
• (F/P) - SameID.net
• (F/P) - ReverseInternet.com
• (F) - Archive.org
• (F) - Alexa.com
• (F/P) - Compete.com
• (F/P) - CopyScape.com
• (F) - BuiltWith.com
• (F) - State Business Websites - Example: kepler.sos.ca.gov
F = Free P = Paid

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Due Diligence Tools
• (F) - Google Trends
• (F) - TradeMarkia.com
• (F) - SocialMention.com
• (F/P) - ReverseInternet.com
• (F) - SpyonWeb.com
• (F/P) - KeyWordSpy.com
• (F) - SeoMastering.com
• (F) - YouGetSignal.com
• (F) - BannedCheck.com
• (F) - Facebook.com / Linkedin.com / Twitter.com / etc.
F = Free P = Paid
Due Diligence Tools
Has the site been affected by Google updates?
Due Diligence Tools
How long has the site been ranking?
Additional Due Diligence
• Read the comments of other prospective buyers
• Research the seller not just the company
• Ask questions that you have already researched and know the answers to
• Ask seller to add you to their Google Analytics account
• Ask questions about potential revenue streams
• Ask what plans the seller had for the business moving forward
• Ask seller to verify all claims with documentation
• Ask about anomalies
• Ask about skills and time required to operate the site
• Ask, Ask, Ask!!!
• Does everything add up?

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What Are Your Plans for the Site?
Create a detailed plan and time line before closing on a
deal
Operation
• Who, what, when
Expansion / Optimization
• Who, what, when
Migration
• Backup website
• Transfer domain
• Update income sources
• Take/transfer accounts
• Transfer website
How to Transfer the Site
Communication is Key
• Agree on specific terms and a
transition plan before you agree to
purchase the site.
Prepare a contract detailing the terms
of sale:
• Time frame and consequences for
transfer
• Payment Terms
• Seller Support
• Non-Compete
• Non-Disclosure
• Non-PerformanceContracts With Key Employees
What is your pain point?
• High value vs. low
value sites
How to Pay for a Site
Send Payment First:
Escrow.com
Lawyer Holds Funds in Escrow
Paypal.com
After Transfer of Domain and Files in Hand:
**Warning these methods have little to no recourse!
Check
Cash
Wire Transfer
Western Union
Bonus Tool Slide
(P) - Hubstaff.com – Time Tracking Tool for out sourced labor
(P) - BaseCamp.com - Project Management
(F/P) - Trello.com - Project Management
(F/P) - MainWP.com – WordPress Plugin to Manage Multiple Sites
(P) - DepositPhotos.com - Cheap Stock Photos
(P) - SafeSiteCertified.org - Trust Seals to Increase Conversion Rates
(P) - DigitalMarketer.com – Boost Traffic, Conversion, & Engagement
(P) - AppSumo.com - Offers Amazing Discounts on Great Tools
(F/P) - Buzzsumo.com - Lists Top Social Media Posts
(P) - TextBroker.com - Inexpensive Quality Writers
(F/P) - UptimeRobot.com - Monitor Site Uptime/Downtime
(P) - Optimizepress.com – Easily Create WordPress Landing Pages
(F) - Google Docs - Collaborative Document Editing
(P) - TechSmiths.com - "Camtasia" Screen Capture Videos & Tutorials
(P) - FreedomVoice.com - Vanity 8XX Numbers, Auto Attendant, Mailboxes ...

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Buying and Selling Websites to Leverage Your Relationships

  • 2. Questions to Ask Yourself Why buy and sell websites? How much is my time worth? Do I want a Job or an Investment? What kind of return on my capital investment do I need? What size deal makes sense? What kind of risks does the site have? What are my plans for this site?
  • 3. Why Buy or Sell Websites Know your reasons for BUYING • Cash flow • Asset appreciation • Untapped Potential • Synergy
  • 4. Why Buy or Sell Websites Know your reasons for SELLING • Cash out • Redeploy capital • Declining market • Focus on core business • Bored
  • 5. How Much is your Time Worth? $100k a year / (52 weeks x 40 hours) ≈ $50 per hour Don't work for less than you are worth: Website Monthly Profit = $1,000 Hours Required Per Week = 10 Website Monthly Income = $10,000 Hours Required Per Week = 10 $1000 / (4 weeks x 10 hours ) = $25 per hour $10,000 / (4 weeks x 10 hours ) = $250 per hour
  • 6. Do You Want a Job or Investment? Would you buy this site for a 6 month multiple at $18,000? What are the real costs in terms of time? Hours Required Per Week = 40 How much are you worth = $50 per hour $50 per hour x (4 weeks x 40 hours ) = $8,000 of your time $3000 / (4 weeks x 40 hours ) = $18.75 per hour Site For Sale : $3000 a month pure profit.
  • 7. What Kind of ROI Do You Want? 1. Typical investment: • CD Rates 1% • Bonds 2-6% • Stock market 7-12% • Real estate 5-14% 2. Why do these investments pay different rates of return? 3. What kind of return do you want?
  • 8. What Size Deal Makes Sense? $100k x 25% = $25k per year $50 x 40 hours x 12 months = $24k per year. Total return needed on $100k investment would be $49k or a 49% time and risk adjusted return. $500k x 25% = $125k per year $50 x 40 hours x 12 months = $24k per year. Total return needed on $500k investment would be $149k or a 29.8% time and risk adjusted return. The larger the deal, the less your time requirements impact the return.
  • 9. Is the Investment Worth the Risk? • How much competition is there? • What are the barriers to entry? • Are there one or more critical employees? • Does the business rely on an outside source? • Does the business exploit something? • What kind of SEO has been done? • Are the products/services evergreen or based on a trend? • Are there pending changes to the law? • Is the business seasonal?
  • 10. Is the Investment Worth the Risk? What is the traffic mix? • Organic traffic • Paid traffic • Social traffic • Direct traffic • Referral • Affiliate
  • 11. Due Diligence Tools • (P) - Centurica.com - Due Diligence Services • (F/P) - SEMRush.com • (F/P) - SpyFu.com • (F/P) - Majestic.com • (F/P) - Moz.com • (F/P) - ahrefs.com • (F/P) - Screamingfrog.co.uk/seo-spider/ • (F/P) - Deepcrawl.com • (F/P) - ScrapeBox.com F = Free P = Paid
  • 12. Due Diligence Tools • (F/P) - DomainTools.com • (F/P) - DomainIQ.com • (F/P) - SameID.net • (F/P) - ReverseInternet.com • (F) - Archive.org • (F) - Alexa.com • (F/P) - Compete.com • (F/P) - CopyScape.com • (F) - BuiltWith.com • (F) - State Business Websites - Example: kepler.sos.ca.gov F = Free P = Paid
  • 13. Due Diligence Tools • (F) - Google Trends • (F) - TradeMarkia.com • (F) - SocialMention.com • (F/P) - ReverseInternet.com • (F) - SpyonWeb.com • (F/P) - KeyWordSpy.com • (F) - SeoMastering.com • (F) - YouGetSignal.com • (F) - BannedCheck.com • (F) - Facebook.com / Linkedin.com / Twitter.com / etc. F = Free P = Paid
  • 14. Due Diligence Tools Has the site been affected by Google updates?
  • 15. Due Diligence Tools How long has the site been ranking?
  • 16. Additional Due Diligence • Read the comments of other prospective buyers • Research the seller not just the company • Ask questions that you have already researched and know the answers to • Ask seller to add you to their Google Analytics account • Ask questions about potential revenue streams • Ask what plans the seller had for the business moving forward • Ask seller to verify all claims with documentation • Ask about anomalies • Ask about skills and time required to operate the site • Ask, Ask, Ask!!! • Does everything add up?
  • 17. What Are Your Plans for the Site? Create a detailed plan and time line before closing on a deal Operation • Who, what, when Expansion / Optimization • Who, what, when Migration • Backup website • Transfer domain • Update income sources • Take/transfer accounts • Transfer website
  • 18. How to Transfer the Site Communication is Key • Agree on specific terms and a transition plan before you agree to purchase the site. Prepare a contract detailing the terms of sale: • Time frame and consequences for transfer • Payment Terms • Seller Support • Non-Compete • Non-Disclosure • Non-PerformanceContracts With Key Employees What is your pain point? • High value vs. low value sites
  • 19. How to Pay for a Site Send Payment First: Escrow.com Lawyer Holds Funds in Escrow Paypal.com After Transfer of Domain and Files in Hand: **Warning these methods have little to no recourse! Check Cash Wire Transfer Western Union
  • 20. Bonus Tool Slide (P) - Hubstaff.com – Time Tracking Tool for out sourced labor (P) - BaseCamp.com - Project Management (F/P) - Trello.com - Project Management (F/P) - MainWP.com – WordPress Plugin to Manage Multiple Sites (P) - DepositPhotos.com - Cheap Stock Photos (P) - SafeSiteCertified.org - Trust Seals to Increase Conversion Rates (P) - DigitalMarketer.com – Boost Traffic, Conversion, & Engagement (P) - AppSumo.com - Offers Amazing Discounts on Great Tools (F/P) - Buzzsumo.com - Lists Top Social Media Posts (P) - TextBroker.com - Inexpensive Quality Writers (F/P) - UptimeRobot.com - Monitor Site Uptime/Downtime (P) - Optimizepress.com – Easily Create WordPress Landing Pages (F) - Google Docs - Collaborative Document Editing (P) - TechSmiths.com - "Camtasia" Screen Capture Videos & Tutorials (P) - FreedomVoice.com - Vanity 8XX Numbers, Auto Attendant, Mailboxes ...