I’ve been regularly trawling through internet marketplaces for many years now. In the past year the quality of websites for sale has dropped noticeably. Even though there are many more sites being advertised for sale and being promoted as having huge potential, an experienced SEO marketer can tell that the vast majority of sites don’t live up to their bold claims. Buyers need to be more vigilant than ever. Here are some quick checks I do before even considering a buying a website. The alexa ranking should be lower than 150,000 AND the google pagerank should be PR3 or higher. Also, I don’t trust webstats other than google analytics. Some web analysers give an inflated hit count (which records a hit for every page element that is loaded). Google analytics only counts actual visitors to the site and gives you a comprehensive breakdown of traffic sources by country, whether traffic is organic, what the bounce rate of visitors is and much more. For example, if most visitors come from a website the seller owns, s/he may remove the affiliate link once the site has been sold to you. The buyer then loses both traffic and revenue upon sale. I never rely on revenue claims without having a screenshot of earnings e.g. from google adsense. Be careful of revenue stats that consolidate yearly earnings into an impressive total. This hides the fact that the website may have generated high revenue at the beginning of the year which has dwindled significantly by the end of the year. Also, revenue stats need to be shown for at least the past 3 months. Sellers may promote high earnings for the past week or month which simply cannot be sustained and may have been falsified. Revenue of course is only half the picture. If the site looks resource intensive, you need to find out how much hosting costs. A blog or forum may have paid posts. Traffic may also have been purchased. All these costs may outweigh revenue been generated hence the reason why the site is for sale (despite reasons sellers may give such as needing more time with family or for other projects). Always ensure that website ownership has been verified. I also prefer payments via paypal. Paypal offers dispute resolutions and from personal experience funds have been returned from scammers without too much fuss. I’ve been searching the following internet marketplaces closely and have not found a site worth buying in months. If there is a site that looks worthwhile investing in, it’s usually overpriced. The reason is simple – low supply of good websites and far too many eager potential buyers. Perhaps it’s time to look elsewhere for business opportunities? Let us know of your own experiences. http://tek3d.org/internet-marketplace-traps
Great advise, thanks ive been looking for some general advise when it comes to buying a website.. one question why the 150,000 alexa rank?
The alexa rank is only and indicator of traffic. It's not a guarantee. Any alexa rank should be backed up by a google analytics screendump.
I am somewhat surprised that Flippa would fall into the category of an Internet marketplace with diminished quality assets. While I haven't yet contemplated site flipping from the many IM sites I've been on Flippa seems 'the' go-to site for quality products. I see one site for sale on their list at a surprisingly low bid price, Fixya. I have absolutely no relationship with it except to recommend it to those who need an easy way to fix computer issues. Perhaps it is the inundation of many more new IM into this arena.
Great layout and contents are very informative. It's privilege to read your Internet Marketplace traps, thanks.
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Thanks you for sharing. But how would i know if analytic report is not a fake one? coz some one can create a fake ones and send like it was generated by Google. Even if i email the report to someone through analytic, Google will send it as an email from the Gmail of the account holder.
It's hard to build a successful business these days online. You need to live your brand and work at it for a few years. Ranking for search engines takes time. You won't get instant results.