Wednesday, December 21, 2005

Website Buying Checklist

I need a check list for buying a web site.  I just made another offer on a site and about 30 seconds later I am thinking I may have made a mistake.  It looks like I am trying to hurry up and buy something (anything) so I can justify the time I have spent looking.

So I need a check list for what to look for the next time I get the urge to pull the trigger on an offer to buy a website that I just have to have.

For a starting point I can eliminate some sites:

  • Template sites created yesterday – I could just buy my own domain name and upload my own template and save myself $50 to $500 so this one is easy to pass up.

  • Sites banned by Google, who need this, you are almost back to a new site but with limited potential to grow.

  • Subject matter I don’t like, for example - gangs killing people really does not interest me that much.
Then I want some revenue, I have a bunch of sites that have potential and are not making any money so I don’t need another one.

If I could get a site at 10 times the real monthly revenue I would be happy with that.

By real monthly revenue I mean where I feel confident that the money is actually going to keep coming in.  Today there was a site and someone asked if their monthly revenue was based off 1 days earnings, the reply came back “no way, I have 5 days revenue to show a track record”, then he went on to explain out of the 5 days 2 of them were only up for a few hours of the day so they should be a lot higher…

Another site for sale had income of $60.00 per money, I noticed in their screen shot that they had 1 click that was $47.00, that one click was almost 80% of their income.  Well that one click may never happen again so then your not looking at $60 per month it may be $13 per month.  

If that screen shot had 120 clicks for .05 cents a piece and it showed that for the last 4 months.  Now I am impressed, that is something that looks to me like it could continue, not someone who hit a lucky click.

That’s like playing poker and on your first hand you get a royal flush, so you estimate that if you get that same hand each time you play you will be a millionaire in less than a week.

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