Just a short post from us today.
If you are looking to flip websites/domains or buy them you should check out FLIPPA. But do use caution. If a site was started in the same months it is being listed, and they are including Facebook Fan Pages and/or Twitter accounts etc., as part of the deal and there are thousands of followers or fans – question it. You can buy likes and follows on Twitter and hundreds of other sites for real cheap.
Someone e-mailed us the other day asking us if it was possible for a relatively new site to have thousands of Twitter followers and several hundred likes.
Yes, it is possible – but difficult especially if they are “legitimate” likes and follows.
Buyer beware. Whether it is Flippa or private domain sales, or website sales, do your DD (due-diligence) before placing that bid or offering to purchase. To a certain extent you will also be relying on the information provided to you – in these cases see if the seller is willing to set-up a WebEx (or any other type of live conference) with you so that they can show you real-time information of sales/revenue figures along with traffic.
You should also remember the SALES/REVENUE does not equal PROFIT. We see many auctions that list $200,000, or $1,000,000 in sales — but how much of that is profit? What is the profit margin? ASK THE RIGHT QUESTIONS.
Now on FLIPPA when you place an ad to sell a website you are asked to provide financial information, specifically Gross Revenue (3-months average) and Net Profit (3-months average). The best way to have the owner prove is if they are willing to provide a look into affiliate accounts, or adsense accounts through a WebEx or other live conference solution.
Something else you really need to consider is whether the cost of the purchase is justified… but we’ll talk about that in another post.