I'm planning to buy a website.

Discussion in 'Growing and Managing a Business' started by Regent, Jul 25, 2013.

  1. Regent

    Regent
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    Hi, this is my first post here.

    The website in question has been around for 4 years. According to freewebsitereports it makes $3.80 Monthly in ads and has had a 37.20% in loss. There are errors (Warning: session_start.....) at the top of every page.

    According to freewebsitereport.org it's worth $92.00. How much should I offer?
    Is it better to give them an offer first or ask them how much they might sell it for?
     
  2. Joseph.Shivell

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    It sounds like this website is going to be redesigned after you buy it. Do you have the skills necessary to do this, or would you have to hire someone to do it for you? Plus, right now it only makes $3.80/month in ads. If you do buy the site, can you do the work necessary to substantially increase this? I would start at the $92 figure and make a lesser offer based on the amount of work you would need to do to make it profitable. If the owner rejects your offer, you can ask what the lowest price is the owner would accept, and meet somewhere in the middle. Keep in mind, though, that if you cannot redesign the site to get rid of the multitude of warnings, and cannot substantially increase the amount of income generated, it doesn't matter what you pay, you'd be wasting your money.
     
  3. Regent

    Regent
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    A few years ago I used to be interested in programming and web development. I learnt HTML, CSS, javascript, jquery and some PHP/ASP.NET. (and C#). I used to do projects on freelancer.com for converting PSDs to HTML/CSS when I was 15-16 years old (I'm 19 now). It's been a while since I've coded and I never really learnt more advanced stuff like Joomla which the website I'm looking to buy is developed with. My summer term at university ended just now and I'm looking to go back into learning how to make websites during my break and I'm just going to redesign the site myself. I don't think Joomla should be hard to learn how to use. I think the website has potential. It just seems the owner doesn't care about it.

    Any tips for negotiating? What should I put in the email?
     
  4. saahil

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    Hi Regent,

    I checked this site freewebsitereport, and has pinged in one of our site www.usedcarindelhi.com
    It shows grossly wrong alexa ranking, grossly wrong ad revenue and even page view details

    The best way of estimating site is by knowing comprehensive details
    a) Analytics - Traffic trend over last 6 months
    b) Backlink Analysis - Using Majestic seo / Open site Explorer
    c) Competition Keywords, ranking, country
    d) Ad revenue for last 6 months

    May be could use flippa for a better estimate or do a self valuation basis above
     
  5. Fergal

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    It sounds as if the people who own the website are not giving it much care and attention, perhaps they would be happy to sell it. If I was you I would send them an email asking if they might be interested in selling it. If they are I would then ask them what the monthly income of the site is and how much they would be interested in selling it for. Quite a few websites sell for ten times their monthly profit, so that might be a useful guideline for you when valuing the site.

    Have you considered whether you could build a competing site yourself, and make it better than the site you are currently considering?
     
  6. Rocky

    Rocky
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    IMO you should not really depend on the valuation provided by such sites as these could vary a lot in reality and you end up losing more than you expect. Best thing you could do is contact the site owner and ask if they would be interested in selling the site and then strike a deal.

    And irrespective of the price you buy the website at make sure that you can profit from it or else it's not worth the effort.
     
  7. Fergal

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    That's a good point. In my experience those valuation sites significantly over estimate the value of websites. I think they do that so that webmasters will link back to the valuation site, to show how much their site is worth.
     
  8. joy07

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    I think that, it is very good idea. Because now a days website business is the best business in the whole world. You will be glad to know that, i am also websites maker.
     
  9. Business Attorney

    Business Attorney
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    Sites like freewebsitereport.org are usually way off (and mostly are too high). They are simply guessing what the ad revenues are.

    Even if they are right about the $3.80 per month, I think that the website is worth very little unless you do something with it yourself. I've seen a rule of thumb quoted often that a reasonable price for sites with relatively low monthly revenues is 10x monthly revenue. That would mean that the site is worth $38. But if you have a site that costs you $12 a year for domain registration and even a low $48 for hosting, the site is costing you more than it is bringing in. Even if you already have a hosting account that you can simply add the site to for no additional cost, you are only netting about $35 after paying the annual domain registration. Even if you only spend an hour a month creating content, creating backlinks and other activities, you are making less than $3 for an hours work. How much is a site worth if it creates a job that pays you $3 an hour?
     
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  10. wealthybucket

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    that a very good, becouse today its also good way of earning money.
     

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