A Beginner’s Guide to Buying an Existing Website
There are many reasons one plans to buy an already existing website. For starters, the level of effort to develop the name and reputation for the website will be a bare minimum since it will already have some reputation on the internet. Apart from that, the website you’re planning to buy might also have a backlink profile that makes it popular in search engines. So, what is the ideal guide that a beginner can follow when buying an existing website? This blog may help you identify that.
Although buying an existing website will have a ton of perks but everything needs to be considered. There might be some data that could jeopardize your business or well-being after purchasing a particular site. To avoid that, there are some things that need to be understood.
Why Buy a Website in the First Place?
As mentioned earlier, there can be a number of reasons why someone buys an existing website. Some people do it for the money since they would be getting a pre-established business and all they have to do is learn it and get going with it. Others don’t want to put in the effort of website development. They have a cause they’re passionate about but are willing to bypass the name-guessing stage, registrations, etc.
What Kind of Website to Buy?
Buying what kind of website depends on your goals. What is it that you want out of a website? Do you have any business plans? An online business is operated solely through websites which means your website will tell everything about your business. So, if you’re purchasing a website of a pre-existing business, then you need to make sure that it has all the necessary milestones met. Some of those milestones can be known through google analytics.
Buying a website that already has a name and business registered under it can be tricky as well. Fine, if your purpose with that website is to conduct the same or somewhat similar business, then that’s an ideal situation for you. But if you’re planning to change the nature of the business that is running under a particular name, then there are a lot of changes that you’ll have to make along the way.
Things to Look Out For Before Purchasing
Buying websites of online businesses means you are dealing with things that people have already established. If after buying the website you get any profits, then they’re meant to be for you to enjoy. But if there are any fallbacks, then the liability falls onto you and only you. You can’t go back to the person you bought the website from and hold them liable for those occurrences. Hence, here are a few things that you need to keep in mind when purchasing a website so any of that doesn’t happen:
Whenever we’re buying a used car or a used phone, for instance, we run record checks to keep on the safer side. If we find anything that is alarming then we back off from our decision. We do that for the protection of our own rights and liabilities. The same is the case with website purchasing. You should check if there is any history of the website you’re buying that could be a problem for you and your business in the future.
Both the buyer and the seller of the website need to be vigilant about their legal responsibilities. The seller should disclose any such information that may be incriminating or troublesome for the buyer, and the buyer has a right to ask about such things. Niche websites conducting e-commerce businesses have a history of their accomplishments that can be used to identify any such information.
The platform of the Website
Websites operate on different platforms. Is the website you’re purchasing operating on Joomla or WordPress? That information matters a lot. This is important to know because it will tell you if the site will be easy to maintain or not. Do you have any experience with any websites operating on Joomla? If yes, then you can make the purchase in that regard. If not, then you should be reconsidering your options.
Changes to be Made
It is obvious that once you purchase a website that was owned by someone else before, there are going to be some changes that you would like to make before taking control. Let’s take the car purchase example. If you purchase a car that has an immensely powerful engine, which you are not used to, then you would certainly modify it to turn it down a notch since you’re not used to that handling that kind of power.
Similarly, whenever you purchase a website, there are some changes that will need to be done inevitably. What you need to be mindful of is whether those changes can easily be made or not.
Understand Your Demographics
Let’s say you’re planning to start a technological gadget business. You will have to purchase a website that has a following of tech-savvy people who take interest in such things. If the website has a similar business representing it as well then you’re in luck.
The mistake many new buyers make is not understanding the content website model, how valuations work, or how to perform proper due diligence before purchase. You don’t want to get caught up in lawsuits and legal work do you? Running the right diagnostics and safety measures before purchasing a website is a very important step. The site owner selling you his website should be easy to trust and completely transparent about every detail.
It would be quite beneficial for you if the previous site owner had adopted a good digital marketing strategy for his product on the site. That would mean he has already optimized his content for search engines. You may not even have to hire an expert who helps you with SEO-related work However, it is important to understand the marketing strategies implemented by the previous owner of the site so you can either use the same or change them accordingly.
Site Traffic Check
Check whether the site’s traffic is relevant or not. If the targeted audience is being directed to your site, then that’s a good thing. This can be done by checking if the site has quality content and search engine optimization. Is the existing site getting any benefits from its traffic? Is ad revenue being generated?
Buying a website can be a great move for filling out an online portfolio. An existing site not only provides instant cash flow but offers the opportunity to grow it quickly for higher monthly revenues or a higher sale price when you flip it. The mistake many new buyers make is not understanding the content website model, how valuations work, or how to perform proper due diligence.
Expenditure on The Site
If you’re a dream chaser and want to have a fully functioning website where you can just start working, then you will spend some money on getting the right one. Of course, you can’t spend too much on the website but if you’re getting one for let’s say 500$ then that would be a bit suspicious.
When purchasing a website, you need to run all analytics on how much you will have to spend over the purchase made. It’s not necessary that if you get an expensive one then you won’t have to spend more money on it. So, before taking any step you should calculate all the expenses that you will have to make in order to get that site up to mark.
To conclude, we can say that website purchasing is as tricky as purchasing any used product. Since someone else has already operated it, it will be according to their demands and needs. Most niche sites have developed algorithms that you don’t have to change that much. The web page of a website will help you understand most of the nature of the site. To cut it short, there are a lot of things that matter in this regard. The site’s revenue, the asking price of the site, the purchase agreement, the domain authority, everything is important to notice. Before a business acquisition, it’s a good idea to submit an LOI so all parties are on the same page before any contracts are hammered out and signed.
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