Thursday, August 25, 2011
How to Purchase Income Producing Websites
1. Ask the website owner for full website visitor statistics. Look at the number of unique visitors over time. Select a site where unique visitors increase or at least remain stable over time as this indicates steady website traffic. In addition, analyze how long visitors stay on the website and where traffic originates.
2. Ask for the website's profit statements and analyze earning trends. Look for websites that show an increase in profit over a number of years. Take into account seasonal trends that may affect earnings, such as holiday seasons. For example, a gift website may consistently see a rise in earnings in November and December. This rise in earnings does not indicate that website profits are increasing on a general basis.
3. Ask the website owner for a list of operating expenses. Evaluate how much money the website brings in, compared to the amount of money it takes to operate. For example, you earn full website profit if a website runs on its own and does not require any additional work. If the website requires constant updates, fresh content and regular maintenance, then the profit decreases because of the money needed to run the site.
4. Inquire about customer lists or email marketing lists and whether the website will sell these assets along with the site. These lists increase the value of the website as people who already know and trust a website will likely revisit the site or purchase products in the future.
5. Check how many websites link to the website. You can run a simple backlink search by inputting the word 'link:' followed by website URL in most major search engines. Look for sites with quality links that come from high-traffic websites in the same niche category as the site you are looking to purchase.
6. Evaluate the search engine ranking of site-related keywords in major search engines as good search engine placement will bring in web traffic and eventual profits in the future. Take into account the age of the website. Search engine rankings increase over time, so a new site may not rank well even if a website integrates all search engine optimization techniques.
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