Hey guys, So there's this site that I would like to buy. I've been watching this site forever, and it's a great site with a huge reputation (one of the reasons I'm so interested). The guy who owns it isn't really great at keeping up-to-date with it, so its pretty outdated- but its got 1.5 million members. Not sure how many are active, but still, 1.5 million people is good enough for me. Here's the problem, he wants somewhere near 1.5 million for it. Fair price in my estimation as its been around for years, and its got one of the best reps of a "small" site I've ever seen. Featured in magazines, newspapers, and blogs all over- its really got links galore . Now I don't have anywhere near 1.5 million- so I don't know what to do. I'd be willing to put everything on the line, but I don't know if there's a company that specializes in this or something of that sort. Anybody got any ideas? And guys, try to keep the a$$hole comments to yourself... I know my chances don't look good just wanted some opinions! Thanks Mike
Hey mate, My first suggestion would be to write up a little on how you plan to make money with this site. This will do 2 things, 1) clarify to yourself that the investment is worth it and 2) clarify to potential investors that they will see a return. I'm not an expert at this kind of thing, but I think if you can make a good business model you can find someone to invest in you. Make them feel safe and that they aren't risking their money. For this matter, you could even approach a bank for a loan with it. Good luck with it mate, you are braver than I am to deal with such large numbers!
if you can get back the 1.5 million members, then it's worth it. I am interested in looking at the site, it will be great if you could give us the url etc. is it an informative site? I think you need to have a great team to develop the site as well..
The seller is looking for a quick exit. Try to keep him involved with the site/company. Offer him equity with buyout terms. Transfer the domain to a lawyer, pending a contract that states if you default on some payment terms that he will regain ownership. Don't give away specifics but you have to engage the seller into believing you will turn this site into a cash machine.
There's a big difference between saying that and achieving it. Have you had previous experience making $1.5 million? If not, then you're less likely to be taken seriously by an investor. In any event, you need to have a sound business plan if you're looking for third party finance; included in there would be details of all the expected revenue, projected cash flows statements, evaluation of risks etc. Have you drawn this all up yet? That's not inspiring either. How much you invest in the project is seen as a statement of your commitment to it. That you don't have a solid cash contribution to make may be seen as your lack of confidence in the project.
What type of website is it? Because I know of multiple big companies that have MANY MANY customers dont even make that much. You have to account for expenses. I bet with 1.5 million customers, assuming 50% of them are active, hes running a few dedicated servers, with alot of bandwidth. Expect roughly $1000 - $5000 a month alone in server costs.