Purchasing A Website
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By :
A.J James
Submitted
2009-10-05 19:46:52 |
So, you want to Purchase A Website?
Purchasing a web sites is an excellent strategy if you know what you're doing, but the biggest problem is that in general, most purchasers wouldn't have a clue what they are doing and this leaves the door wide open for Scammy McScam to sell them lemons!
It's a sticky environment out there in the online world and trying to make money buying and selling a website is about as tricky as it gets.
We're not talking about buying a website name or buying a website address, we're talking about purchasing fully fledged businesses, or so it would seem...
Buyers Beware
Purchasing a website is fraught with danger
First of all like any business for sale, the numbers are always worse than they look on paper. This means they might show you a $1000 a month profit, but the chances are they probably spend $800 on advertising, which you can be sure they don't tell you about, it happens all the time.
If They Don't Know How To Montetize - How Do They Know It's Worth?
Don't purchase a website based on potential
Another one is the excuse "someone who knows what they are doing could make a killing out of this". If I had a dollar for every time I read this in a for sale advertisement. The fact remains, that this implies the current owner (seller) didn't know what they were doing and if they don't know what they are doing how do they know if someone did, that they'd earn anything?
Potential isn't worth a dollar amount! Potential is where I make a profit by buying for less than what it is worth and then selling for more. I'm not paying a price for something's potential.
Beware Of Hits
Purchasing a web site because of traffic might trip you right up!
As for traffic, did you know that once a website is listed for sale it's traffic spikes. Many astute site sellers put it up for sale each month for three months, this almost guarantees at least 50 hits per day (2000 hits per month).
I know that some unscrupulous folk, build a cheap template site, and put it up for sale for 4-5 months each month taking it down. This gives them a base of traffic.
Then they write an ebook and submit it to click bank.
They then use an affiliate code and buy 1-2 books per day through their site, thus boosting the sites perceived profits. they get most of this money back as an affiliate and an author.
Then they spend $100 a month on adwords and bump their traffic up and they fake a few clicks from other peoples computers.
After five months they can say that their site is worth $10,000 dollars because it makes $1800 a month, get 3000 hits and cost nothing to run.
Guess what it happens all the time.
I'm Watching You!
Now for those of you less scrupulous than others, don't you go getting any ideas okay, because I am not trying to spur you on, rather, I'm trying to detract you from such evils.
I just hope people know what they are getting themselves into, after all there may be famous phrase "Caveat Emptor" - "let the buyer beware", but we need to be smarter consumers and as an advocate of capitalist policy, I want everyone to be smarter buyers and let's all eradicate the scam artists.
To Conclude
So next time you want to purchase a website, think long and hard about how they could be tricking you out of your hard earned cash, because most sales are by professional site resellers who know a lot more than you.
Purchasing A Website By A.J James
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