Buying a website – 10 useful tips
Posted By admin on September 2, 2008
I have decided to divide my tips into two categories – transaction tips and valuation tips. These are the very basic hints on how buying a website should proceed, therefore all those inexperienced in the matter should find something for themselves here.
Transaction Tips
- It is important to hire an attorney. In order to protect your interest you simply must have a purchase contract that is signed and written accordingly. Such contract should be signed by all owners on the sellers side (and that includes all officers if buying from a company)
- Get a chain of clear title on the domain. If the domain has been owned by more than one person or company you must make yourself sure that it was cleanly sold each and every time. Popular virtual property does change its owners from time to time. Your attorney should be able to help you document this. After you have built the domain into a PR8 you don’t want it yanked back to some previous owner.
- Get a clean title on the content. Your attorney should write this into the sales contract. The seller will guarantee you consistent copyrights to all of the website content.
- Employ an escrow agent. The escrow agent will make the seller comfortable and hold your money until all of your conditions have been met.
- Do not close the deal before the domain is in your name, at your registar (you can check it in the whois query) and you have been given the passwords to the hosting, control panel and ftp.
Valuation Tips:
- How sexy is the domain?
- What is the content quality? Is it linkable? Will you own it completely?
- How many backlinks are present? What about their thematic relevance?
- Will the backlinks stay unchanged when the deal is closed?
- What is the site’s actual income? What is the conversion rate? Is it possible to increase it even further?
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