SPI 032 : How to Buy a Website with Chris Guthrie

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In this session of the Smart Passive Income Podcast we welcome back (for the third time!) Chris Guthrie of MakeMoneyOnTheInternet.com.

The first time he was on the show in SPI Session #10 – we talked about niche sites and his amazing success promoting products as an affiliate for Amazon.com. In 2010 he sold over a million dollarsof product and collected a generous commission as a result, which is awesome.

The last time he was on the podcast we had a little back and forth discussion in SPI Session #22 about affiliate marketing – tips, tricks and real life experiences from the both of us, which was really fun too.

This time, however, we hardly talk about affiliate marketing at all. In fact, we spend a good 60 minutes chatting about something completely different that Chris has recently been focusing on to grow his net worth – something that I’ve become very interested in as well, especially because it has to do with a major goal I have in 2012.

So what’s this session about?

Buying websites.

Buying a website means that you obviously have to spend a little bit of money, but think about this…

Instead of starting a site from scratch, developing it and getting it to a point where it’s generating an income, which as we all know takes some time and money to do,  you can “fast forward” and buy a web property that is already earning money.

If you can improve the earnings of that site (and even if you don’t), that site becomes a very valuable asset that can continue to put money (and for some sites, passive income) in your pocket for a long period of time.

Of course, there’s a lot that goes into buying a website, which is why I wanted to pick Chris’s brain before I dive into this myself.

In this session Chris and I cover:

  • Where to find websites that are for sale (and no, Chris’s primary location is not Flippa.com, although we talk about that marketplace too).
  • The criteria Chris uses to determine if a website is worth buying, plus signs to look out for.
  • How to determine the right price to offer for a website, including market standards for different scenarios.
  • How much potential is really worth (you can guess this one).
  • How to not get scammed when buying a website.
  • How to pay for a website that you buy off a marketplace.
  • How transfer of domain and ownership works (I drill down Chris here – I had no idea how this worked before).
  • Examples of successful buys that Chris has made in the past, including the purchase price and domain (and what those sites are earning now).
  • Examples of a not-so-successful buy that left Chris out 4 figures and what we can learn from his experience.

Right click here to download the MP3

Items mentioned in this podcast include:

This was a great session, and thanks to Chris once again for sharing his knowledge and expertise with us on the show (and for the SPI only discount on his new course too!).

I will say, however, that if you do become interested in buying websites after listening to the show, even though it is a faster way to get a website that is earning an income online, it’s still going to take some work. Deep research and analysis to minimize risk is what it’s all about.

There are risks involved and nothing is guaranteed – so do you’re homework if this is something you’re going to look into.

Update / Comment (from Clinton of Experienced-People.net, who is a veteran website buyer) – I just wanted to share part of his very insightful comments here:

“You compare it to buying a house and say just do your research. That’s dangerous advice! When you buy a house you have professionals doing your due diligence and legal stuff for you, you are buying from a local seller and are subject to local laws which have evolved over centuries. Not so with buying website properties from unknown third parties in far away countries who work to no laws at all. You can’t just “do your research”. That research is a specialist skill in itself.” – see more from Clinton below in the comment section.

I hope you enjoyed this unique session here on the SPI Podcast – and look out for some posts from me in the future when I begin to buy websites and document the entire process to hopefully add some nice income generating websites to my off-SPI passive income stream.

Cheers, and all the best!

Please subscribe below to the podcast to get automatic updates:

Transcript:

Click Here to Download the Transcript for Session 32 (PDF)

  • http://magnusforsberg.com Magnus Forsberg

    Great subject Pat. Buying, and selling, websites is not nearly covered enough. Thanks!

  • http://www.brianlimaphoto.com brian

    was just researching this subject. thanks for sharing pat! brian

  • http://www.mikefrommaine.com Mike From Maine

    This podcast was very useful for me because I’m in the business of building and selling websites. It’s good to know what people are looking for so I can build sites that there’s a demand for.

    • http://www.makemoneyontheinternet.com Chris Guthrie

      Hey Mike,

      Yes the more income history and traffic history you have the more likely you are to get a price that you want for the website you’re looking to sell.

      Chris

  • Tomas

    I’ve looked into buying a website before, and felt I didn’t have enough knowledge to reduce my risk. This podcast is a great resource for website buying. Thanks!

    • http://www.makemoneyontheinternet.com Chris Guthrie

      Hey Tomas,

      Yah it’s easy to just jump into trying to buy a property but if you don’t know a lot of the essential aspects of buying a website you can end up overpaying, buying a bad website and just generally losing money.

      Chris

  • http://www.extramoneyblog.com Sunil from The Extra Money Blog

    Excellent run down Chris and Pat. Agreed that this is an “under covered” topic.

    In my personal experience I have found that the best value deals come from unsolicited offers. There are people that have no idea that websites can be / are bought and sold and often times tired of their own web properties (Chris – good point on sites that are on page one as well as those that are solid but not updated often as it is a sign the owner has likely lost the motivation).

    Chris you mention you bought one for $500 and since have made $7,000. Seems purely a “financial buy”. that said, have either of you bought a site for strategic reasons to integrate into a current complimentary business? Curious how you go about your valuation methods when the goal is strategic rather than financial.

    • http://www.makemoneyontheinternet.com Chris Guthrie

      Hey Sunil,

      Yes I’ve also found most of my deals through just contacting existing owners / pure hustle. That’s why if you checked out my Flippa profile you’d see I have very little transaction history (that and once I buy I prefer to hold).

      Actually that $500 buy I bought as I was originally going to build a network of product review websites to sell as an entire package later on down the line, but I decided against going with that approach.

      One of the ways I make money online today is by selling software so I did recently buy a WordPress plugin website + the code from the creator for $1,500 which was a bargain considering how much time he had spent on it’s development. So that would be an example of buying something to build into my existing software business.

      Chris

      • http://www.extramoneyblog.com Sunil from The Extra Money Blog

        thanks Chris. looking forward to the niche theme product with Spence.

        all the best

  • http://womeninternetmarketers.net Diane Corriette

    Interesting topic to cover, so many people focus on selling websites or blogs that I never really thought about buying them!

    • http://www.makemoneyontheinternet.com Chris Guthrie

      Hey Diane, yep there are those of us on the other side of the picture that are looking for quality properties to buy. I’m always looking for more sites to buy.

      • http://womeninternetmarketers.net Diane Corriette

        I love creating things and am a ‘starter’ so creating websites that I can sell might be right up my street! I will have to listen to the show again to get clear on what you buyers look for in a site.

  • http://www.whatdoturtleseatinfo.com/ Johnny Bravo

    Great post Pat. Thanks for this. This is going to be stage two once I have a better handle on getting sites to the top of google.

    • http://www.makemoneyontheinternet.com Chris Guthrie

      Hey Johnny,

      Just remember to wait long enough for stable rankings (traffic) and income history otherwise you’ll have trouble getting top dollar for your website.

      Chris

  • http://www.kelseyljones.com Kelsey

    I was just looking at sites on Flippa.com last night, what a coincidence! Thank you!

  • http://www.ivblogger.com Sheyi

    Chris rocks alot when it comes to Amazon and site flipping biz too. I’m going to have him on my show later this year as well.

    Sheyi

  • http://experienced-people.net/ Clinton

    Great topic for discussion, Pat. I’m one of Flippa’s first ever buyers (when the market was at Sitepoint) and I’ve bought or assisted in millions of dollars of website purchases/sales over the last decade. I’ve written various articles for Flippa including their guide to valuing websites, their blog post on how to transfer a site etc. I’ve written extensively elsewhere on everything from due diligence on website purchases to why you can’t trust escrow.com. I also own a forum where almost everybody who is anybody in site buying is a member (including Flippa managers and owners, all the top website brokers etc). And I give it all away for free. Like you, the more I give away the more the universe seems to give me…. and I don’t even believe in karma! :)

    As a long standing expert on buying websites I think a lot of the claimed potential to profit from buying sites just doesn’t exist.

    Flippa is full of junk. And many crooks. Brokers like Latonas and Websiteproperties have completely unrealistic prices and finding sites by emailing owners isn’t as easy as you think. Trust me, I’ve done a lot of research on this and have worked with people who’ve developed tools to automate part of this process. There were also aggregation sites that pulled listings together, e.g. ITSect – which doesn’t exist anymore – and the likes of BizMP which are around, but aren’t. Oh, yes, there’s flipfilter, of course, and that’s a pretty good site but it draws from only a limited pool of listing locations.

    So, not easy to find good sites (and I’m one of the world’s top experts on finding sites to buy).

    It’s not easy to do the due diligence either. Sellers have become more and more sophisticated in how they scam buyers. On one of my sites I’ve got pages and pages devoted to catching out their myriad fiddles, it’s not for the faint hearted (for those who want to find it, my site is the #1 result in Google for due diligence on buying websites). Scam selling is big business. There was a chap called Christopher ____ (I won’t share his surname) who used to expose scam sellers on his idontgiveascam site; he got so many death threats he had to give up his scam spotting and doesn’t even work online anymore. If you’re new to buying websites, you’re easy meat.

    Good luck to (this) Chris with his course, and I hope his course provides much more than what’s already available for free at my forum and elsewhere ;)

    On a different note, Pat you’ve got an awesome blog here; you and I seem to share the same philosophy on “free”… well done, I’m glad to have found it and will mention it in one or two places.

    • Pat

      Thanks for the kind words Clinton, and for sharing your expert experience about buying websites. Bottom-line is, I think, just be careful and do your homework before making any soft of investment. Same thing goes with buying stocks or a house – you gotta do it or else it could come back to bite you.

      So would you say the best way to go is through niche research and finding those who weren’t even necessarily thinking about selling their sites, and hopefully finding an offer that works there?

  • http://talesofwork.com kimanzi constable

    Great subject and I can’t wait. i really enjoy and get alot of value out of this podcast. can’t wait!

  • http://www.brockstarlife.com Brock @ BrockStarLife

    Awesome podcast! I’ve been following Chris’ Amazon strategy for a while, but for those of us with money to invest, buying/selling/flipping web properties makes sense. Seems faster and more strategic…if you know what you’re doing of course. Which is why I’m listening right now…

    • http://www.makemoneyontheinternet.com Chris Guthrie

      Hey Brock, sounds good hope you’re doing well with it :D

  • Raz

    Sorry Pat I couldn’t help it but…

    “In 2012 he sold over a million dollarsof product and collected a generous commission as a result, which is awesome.”

    I think this should be 2010 or 2011 rather than 2012….

    I know it’s small, but it bugged me seeing it just like an unerased chalk mark on a completely clean black board….

    p.s. You can delete this comment after the fix….

    • Pat

      No worries Raz – thank you! Corrected!

  • http://viewdns.info/propagation/ DNS Propagation

    Theres another free DNS Propagation checker at http://viewdns.info/propagation/

  • http://tad-resources.com/ Teresa Douglas

    This is a topic that can be hard to find good information on. This is easily the best coverage of the topic I have ever found. I have always wondered how the ins and outs of buying websites worked. I’m still not sure I’m ready to manage that sort of venture, but it is certainly handy information to know for the future!

    • http://www.makemoneyontheinternet.com Chris Guthrie

      Hey Teresa, I’m glad you liked the information thanks for listening!

  • http://christopherbattles.net Christopher Battles

    Thank you Patt and Chris. I am not in the “market” to building a site like this, but I sure got a lot of insight and feel for what goes into all that you talked about.

    K, bye

  • http://experienced-people.net/ Clinton

    Pat, you ask the best methods for those who are willing to take a dare and dive in. We discuss this in some depth on our forums in various threads; it’s not easy to summarise in a sentence. It does depend on the budget you’re willing to risk and on the sectors you want to play in.

    You compare it to buying a house and say just do your research. That’s dangerous advice! When you buy a house you have professionals doing your due diligence and legal stuff for you, you are buying from a local seller and are subject to local laws which have evolved over centuries. Not so with buying website properties from unknown third parties in far away countries who work to no laws at all. You can’t just “do your research”. That research is a specialist skill in itself.

    There are countless blogs and sites on the topic of “website flipping”. I detest the term myself as it’s over-used and the potential for making money from “flipping” is grossly exaggerated by a bunch of greedy MMO types looking to make a quick buck. Even Flippa was in on the act a while ago hyping “flipping” (in what I believe was a misguided attempt at driving more business to their listings site). Flippa have now reached a more enlightened stage and given up on that cheerleading of a dead horse. But while that was the hot topic there was a lot of content being created by those sellers of “site flipping” products. Not all of it is complete rubbish, some of it is quite decent material – including on how to find sites – and a few searches should lead your readers to that free material.

    There are some comments above from people like Teresa, Magnus, Sunil etc., suggesting that information on buying websites is hard to come by. I’m not sure whether those comments are just the sycophantic rantings of MMO groupies or whether those posters genuinely haven’t been able to find decent information on website buying. My suggestion to anyone not capable of some basic Google-fu: don’t get into buying sites, it’s too complicated for you.

    • http://www.makemoneyontheinternet.com Chris Guthrie

      Hey Clinton,

      I never really advocated flipping – I prefer to buy and hold for at least 12 months. I also mentioned that there is more risk buying a site from an owner outside the US as well (well at least I thought I did lol I’ll have to relisten to the podcast).

      In any case I’ve commented in your forum thread and will continue the conversation there.

      • Thomas Riley

        “I also mentioned that there is more risk buying a site from an owner outside the US as well”

        why would you suggest it more dangerous to buy a site form a UK owner than a US owner?

        There is a world outside the borders of the USA you know ehere commerce was invented in Greece a few thousand years ago.

        Thats a very ppor american focused attitude thats bound to offence people the world over

        regards

        • http://experienced-people.net/ Clinton

          Thomas, I suppose when paying by Paypal there’s a slightly smaller chance of getting scammed by a seller in the US/UK than, say, The Unregulated Republic of Outer Romanasia.

          However, when someone like me in the UK is using escrow.com we are safer dealing with a party NOT from the US. It has to do with the the California jurisdiction of IES Services (escrow.com). I’ve got a page describing it here: http://www.experienced-people.co.uk/1021-getting-payment/escrow-in-california.htm

          The simplistic advice is to just use escrow.com as “it’s safe”. I don’t know if Chris makes that recommendation (and, to be honest, I didn’t have the stomach for a whole hour of audio), but I’ve seen a lot of ebooks just parrot the “it’s safe” advice. The truth is more nuanced. There are numerous cases of people using escrow.com and still getting scammed.

      • http://experienced-people.net/ Clinton

        Great to have you at the forum, Chris.

        I used flipping in quotes because it’s commonly (and incorrectly) used to describe exactly what you’re talking about, exactly what your product is about. There are hundreds of sites, ebooks and courses on this “flipping”.

        A bit of history: Flippa worked with, promoted and ran blog posts from sellers of “flipping” products and contributed considerably to what is now commonly (mis)understood by the term. Heck, even the Flippa name was probably chosen with the intent of confusing flipping of worthless template junk with the purchase of legitimate online businesses. If you want more history, try searching for an article I wrote two years ago called “Flippas, Floppas, MotherFrockers, what the heck’s happening with Website Flipping?”

      • tom

        Hi

        I was just pointing out Chirs’s bias against anything non USA in that comment.

        And wasnt the biggest con in history execute by an american? Indeed many of us here inthe UK and our pension funds were damaged by that all american boy Bernie?

        Lets not set a country secific nature to comments. I know its easy to imagine the world stops at the us borders.

        regards

    • Steve Wyman

      Hi Clinton

      Id never seen you site before !!

      Woow what a resource and as you says its FREE now thats awesome.

      Even a quick read puts it ahead of a bunch of paid course promoted by affiliates i could name!

      I can see youve been established for a while s well ! heading off to the buy sell section now to have agood look around

      Qudos.

      • http://experienced-people.net/ Clinton

        Thanks, Steve.

        I find the comment thread on this page quite fascinating…

        A few smart people figured I sound like someone who knows what he’s talking about and they followed my link. The really smart ones recognised the quality of the resource in my signature. The really, really smart ones signed up and started posting. Like Pat.

        But the comments here are interesting for one reason – the number of people who seem to have completely missed seeing what you’ve seen; people so keen to buy the next product they perceive will make them rich that they trample all the gold coins on the pavement in their rush to get to the class about how to find gold. :)

        I wish you good luck in your search Steve, but I suspect that, like Pat, you have something more important than luck and will succeed anyway.

  • http://adsenseflippers.com Justin

    Great episode here. Both Pat and Chris are true professionals when it comes to online marketing and Chris is a great go-to when it comes to information about buying sites. I know it was a goal of his last year to spend 100K or so buying sites…he didn’t quite make it but did end up purchasing quite a few!

    I really think that buying and building out sites is an EXCELLENT strategy to making money online, but you have to be really careful spending a chunk of cash until you’ve built up some experience. As they mentioned, don’t go out and blow a good portion of savings on your first go-round…try to build up to that and over-research at first, I think, for the experience.

    We’re “exploiting” this marketplace by selling our own sites, but we plan on experimenting over the next couple of months at expanding sites out with an ROI. If it’s something we can do successfully, purchasing sites is a game we’d like to get into as well…there’s a ton of money in it.

    • http://www.makemoneyontheinternet.com Chris Guthrie

      Hey Justin,

      Yah I just bought a site last month for $10k and I’m really devoting a lot of my time to finding more great sites to buy. That really is a large part of the battle and something that I’m committed to in 2012. Only $90k to go now lol but yah I fell short of my goal last year.

      We need to catch up on Skype sometime – will hit you up soon.

      Chris

  • http://thinksuccessproject.com Mitja

    Wow Pat. This is some advanced stuff. Way to go. You should think about creating an ebook about the subject, when the time comes. Just a thought.

  • http://jogosdevestirfamosos.com/ Edward from jogos de vestir famosos

    The tools you mention in this article are great. Specially semRush (great tool).

    Something that is not so good about other tools like Compete.com is that data in available for giant sites and in english at the US. So data provided for other languages (like portuguese) and counties (like Brazil) is not accurate (even not relevant at all).

    Thanks for your tips!

    • http://www.makemoneyontheinternet.com Chris Guthrie

      Yah, I don’t operate in those markets, so I’m not really sure exactly what should be done there. Sort of a tough one.

  • http://www.prointernetincome.com Luke

    Looking forward to this one!

    D’Loading now and will whack it on during the drive home.

    I have been wanting to look into site purchase as it means not having to deal with the up and downs of being a new site in googles eyes.

  • Jerome

    Thanks Chris & Pat

    I checked out Flippa yesterday and found a site thats six months old. It already has a 2 pagerank and is seeing some decent traffic. Most of the links are manufactured probably due to the young age and the owner has not even bothered to monetize it (hence no income reports)….stating that it was not his aim for the site…….

    Hit or Miss?

    • http://www.websitehostpro.com Anya

      Page rank of 2 after 6 months? Check the pages of the pages and ranking of the site. Page rank is easily faked by redirecting a domain long-standing domain to a new domain. That’s fast page rank growth unless it’s quite a decent site.

  • http://talesofwork.com kimanzi constable

    I’ve listened to the podcast and it was very informitive (as usual) I don’t think I’ll have money anytime soon but when I do I’ll come back to this podcast. Good luck Pat in the sites that you buy!

  • http://plrcontentcentral.com/plrcontent.htm Sid

    I wanted to find more info on how to buy a website, and your post gave a great insight to the process. True, rather than build a website from scratch, which could take months, it would be prudent to look at one that’s already up and running. That way, it helps to focus on taking the site to the next level.

  • http://www.BusyExecutiveMoneyBlog.com Busy Executive

    This is really good. I will take a look at Flippa to familiarize myself with what’s out there.

  • http://www.smallscalebusiness.com Ben the Business Idea Guy

    I’ve just bought a site at Flippa using the Buy It Now because I feel that it was a goldmine.

  • http://www.phoenixmarkettrends.com Artur

    This was a great session. I’m actively buying sites and I’m certain some of the cautions mentioned will come in handy, especially when it comes to private sales.

  • http://www.lazybastardlife.com Jason

    Thanks for the tips. I had heard of Blekko but never used it. Listened to your podcast yesterday. Then this morning, read a post about it from SEOMoz.

    I just checked it out. It looks like a pretty good free tool for people with no money to spare on SEMRush (at least this is my initial critique).

  • http://www.purewaterrevolution.org Glenn Meder

    Pat, I loved this podcast! I have a request. Can you make a podcast explaining the whole online passive income approach to children? I have a 12 year old and I consider this to be invaluable financial education. Thanks much!

    Glenn Meder

    • Pat

      Hi Glenn, thanks for the inquiry. I try to write my content and share it in a way thats easily consumable – not to say that I write it for kids but I think kids could consume it – I don’t complicate things much knowing many people aren’t that experienced – young and old.

      Check out sessions 15, 16 and 17 for a good place to start – or you could start here:

      http://www.smartpassiveincome.com/passive-income-101

      Cheers!

      • http://www.purewaterrevolution.org Glenn Meder

        Thanks for the reply Pat. I appreciate you keeping it simple and sincere. I just mention this so that the thought stays in the back of your brain so when an opportunity to speak directly to kids comes up, you take advantage of it. The way I’m thinking of it, you’d start even more basic, like Rich Dad Poor Dad, in painting a picture of working for a living versus investing in assets that make money for you. It’d be cool to make a video or even an animation that tells people why passive income is important and how easy it is to do. My child at 12 has a great opportunity to develop this passive income before he even turns 18! Anyway, think about it. Thanks again!

        • Pat

          True, I could definitely do something like that – thing is, generating a passive income is not entirely “easy”, but the sooner one learns about it and the sooner implementation starts, the better chance one has of succeeding with it, since a lot of it is (educated) trial and error.

        • http://www.purewaterrevolution.org Glenn Meder

          Yes. This would be a key point to make. Passive income isn’t easy, but life isn’t easy. Working 9 to 5 isn’t easy. Living paycheck to paycheck isn’t easy. It’s not easy in some ways, but it’s much easier in the long run. It’s a much easier formula for living the life that you want to live.

          Anyway, thanks for responding to my posts. I love your website!

  • http://www.diybusinesswebsite.info Jason

    Another great Podcast. I was thinking it is about time for you to come out with a book about “Smart Passive Income”, kind of like the “Rich Dad, Poor Dad” books with an internet twist. Maybe have some of your Podcast guests write a chapter each.

    • Pat

      Hi Jason,

      Thanks – hehe. I’ve given some thought to it, but don’t want to force anything out just because it seems like the right time from the outside – the book, to be awesome, must come from the inside and I’m not quite there yet. It’s a huge undertaking and I still have a lot to learn :)

    • http://www.inmarketingtips.com Kent @ Niche Marketing Tips

      Jason, I really like this idea. I love “Rich Dad, Poor Dad” and I am doing this “Smart Passive Income” as building my assets and generating cash flow like Rich does.

      When SPI book is out, I will pre-order for sure!

      • http://EminiMind.com/getting-started Tim Racette

        Right there with you guys. Building a portfolio of Internet real-estate is an awesome concept. Last October I remember playing Rich Dad’s Cashflow game and being stuck in the Rat Race. After a month or so of playing my mindset totally evolved and I had an entirely different mindset open to all sorts of possibilities. Same thing happened after reading ’4Hr Work Week.’

        Great Podcast Pat, thank you.

  • http://www.towhidzaman.com Towhid Zaman

    Nice to know what a experienced buyer always wants from a seller.I flip a lot but still your podcast is a goldmine for me.Thanks.

  • http://ButchGibson.com Butch Gibson

    Interesting segment. Plenty of what I might call surface information, but I wonder about what is beneath the surface. In other words, when buying and managing as many websites as you describe is there a specific tool, suite, or list of tools that make managing all of the sites, domains, maintenance, financial information, etc. easier?

  • http://www.ilovedividends.com Magnus from ILoveDividends.com

    I’ve not listen to the session – but I’ve reed the comments wich I found very interesting.

    I am also in to investing in websites, and since I’m from, and located, in Sweden I do try to make deals with other Sweeds. The image of american sellers is often marked with a big “be carefull sign” do to all the scam out there. Wich often is in english, and must not be americans. But the americans do get blamed!

    But I hope this will change! A good, swedish I think, escrow out there wich I have used is: http://www.Missdomain.com .

    • http://experienced-people.net/ Clinton

      Magnus, I’ve no idea who this missdomain company is, but their escrow service has no mention of who regulates them, what their dispute process is or even whether client funds are held in a ringfenced account.

      I would caution readers of this blog to be careful before transferring shedloads of money to a company they don’t know.

  • http://www.ButchGibson.com Butch Gibson

    Wow. First time I’ve commented on a Smart Passive Income podcast, and I guess I’m getting an ear full, eye full, and an inbox full of feedback. I didn’t really hear anything negative in the program, although it sounds like some folks are suggesting that there was. It sound like (to me) that the guest merely suggested to deal within an area that you might be able to control. If for instance you live “your country” then you may want to deal with sellers in “your country” because if there are any problems you’re able to use the legal system of “your country” to potentially provide assistance. If you live in “your country” and deal with an individual or company outside “your country” then you may have difficulty working out the problems.

  • http://www.ilovedividends.com Magnus from ILoveDividends.com

    Clinton,

    Of course should people be very carefull with their money transfers to company the don’t know. When you put it that way I would not recommend it for a american. I choosed to use it because it has good reputation in Sweden and has an Swedish telephone customer service.

    But we need more people like you Clinton. People with knowledge who can teach the rest of us how it’s really works.

    Sorry for my bad English…

  • http://www.andregarde.com Andre Garde

    Great post, Pat. I haven’t been here in awhile but coincidentally I bought a pair of websites just recently to add to my portfolio. They aren’t big earners by any stretch of the imagination. However, the motivation for my purchase was to study the onpage-SEO and apply it to my other sites, because both sites are ranked ridiculously high with no backlinks at all in niches with attractive exact local searches and CPC. I bought them so that I could dissect them at my own leisure, understand the Analytics data, and take all the best points and enhance my current batch of sites to improve them.

    Okay, they do earn a little, but I digress (and besides it’s peanuts). I actually bought them on a public forum as opposed to Flippa. I find that there’s too many sales pages promising the dream on Flippa to sift through that it’s hard to find out what’s good in a reasonable amount of time. Perhaps I’m just impatient, but I have it easier on a forum where the crowd is smaller, and for me it becomes easier to spot the gems amongst the chaff. Far less competition as well, and cheaper if you’re a first-time investor like myself.

    I did a ton of homework though before I bought those sites, and to a fairly technical degree (backlinks are just the tip of the iceberg). It helped that I was able to speak with the sellers over personal cell phones/Skype as well, and I grilled the heck out of them. Above all I think if you keep asking the seller questions and they don’t get answered to your satisfaction, move on — there’s plenty of websites out there.

    I’m sure that you’ve covered all this in your podcast, but I haven’t listened to it yet. Been very busy as of late, but hope to catch up with all the SPI that I’ve missed since last December!

  • http://buy-expired-domains.com/ Thomas Hoi

    Hi Pat,

    Thanks for this podcast on buying website. I tried this 2 years ago, bought a website for over $200 and add some ads but did not make back my investments. Since then, I have been watching on flippa to buy more but I found that the quality of sites are getting lower since the sellers are only interested in making a quick buck.

    I agree with Chris that the best deal is from private sales where you just ask the website owner if they are interested to sell their sites. I tried these too but without much success. But I still like the idea of reaping the benefits off other’s people hard work.

    Then I accidentally stumbled upon expired domains. I initially bought expired domains with high PR for the purpose of back-linking. So there was one PR4 expired domain which I acquired and immediately re-developed it back to it’s originally website (with content from archive.org) and I thought I could just put an amazon affiliate link to see what happens…. less than 2 months later, I made a sale of over $5,000 from this website…. I was amazed…..

    Since then, I have been researching more on expired domains traffic but could not find good resources, so I started my own free video course and hopefully more internet marketers can benefit from them.

  • http://techwalls.com/ Tuan @ TechWalls

    I’ve just got scammed when selling a website recently. I transferred all domain and files but then buyer didn’t pay me. Could you recommend the best way to avoid scam in selling websites?
    Thanks

    • http://www.trustedsiteseller.com Ryan @ TrustedSiteSeller

      I have had this happen to me too Tuan way back when I first started buying websites. Treat it as a learning experience and you won’t ever make the same mistake again.

      If you are dealing with a seller that you haven’t worked with before, and you aren’t using a broker, then you should usually use Escrow.com for any type of sale. You have to pay a little bit of a fee, but it makes the transaction a lot more secure.

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    Thanks & keep posting..

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