Buying a website can be a nerve-wracking experience and it doesn’t matter whether you’re a brand new buyer or an experienced investor. No matter what your situation is, the first thing to do is understand what type of buyer you are, where your motivations lie, and figure out the next steps you should take to build your online portfolio. We’ve helped hundreds of buyers over the last few months and have broken them down into three distinct buyer types.
The Three Types Of Buyers – Which Are You?
Beginners may have built, bought, or sold a few sites before, but are still primarily trying to figure out how all of this works. They know there’s opportunity to make money flipping websites but wants to test the waters first without taking a huge loss.
Don’t bet the farm on your first few purchase. Look for base hits off which you can build your empire.
Smaller AdSense or Amazon sites with consistent earnings.
Spending more than half of your allotted budget on one site, sites that are “template” or non-earning sites, sites with confusing platforms (stick to WordPress) or confusing monetization (product business with inventory.)
Growth buyers do it themselves – their looking for a site they can purchase, figure out, and grow on their own. Their looking to be more hands-on with the site than some of the other buyers.
Look for sites that are in niches you care about. You’ll be spending some time on this site, so it should be in a niche that interests you.
“Fixer-Upper” sites (requiring a new theme, site structure, revamped content, redone internal links, etc.,) websites where you plan to change (and improve) monetization, sites that haven’t been updated or renovated in some time.
Penalized sites that aren’t likely to rank on Google soon, websites that need improvement in areas you’re weak or aren’t willing to learn.
Portfolio buyers are looking to add more sites to their ever increasing portfolio. They may be looking to diversify his traffic and monetization sources or may have a specific goals in terms of revenue per month their looking to achieve. They don’t have much time, so their looking for more passive investments or businesses that come with trained staff that can keep the asset running.
Buyers often downplay the time required to maintain or grow the site. Make sure to ask if current Virtual Assistants or staff will be coming along with the purchase. If they are not included, add those costs to determine true net monthly profit.
Higher-end AdSense, Amazon, or affiliate sites, drop shipping or product sites that come with VA’s or staff, sites that help to diversify your current portfolio.
“Fixer-Upper” sites or those requiring a makeover, extremely competitive industries, and short-term niches (i.e. Sydney 2000 Olympics.)