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According to the BLS, entrepreneurs started 774,725 new businesses in the year ending March 2019. From the historical data, we can expect approximately 155,000 of these businesses to fail within the first two years.
There's no wonder you would want to buy an existing online business that is successful.
There are a lot of mistakes made when buying an online business. The following advice will help.
Find A Site
Find a site in a niche that is popular. There are places to buy websites that will let you sort through which sites are most lucrative:
Flippa | Buying mini cash-flowing businesses on Flippa
Investors Club – They list smaller websites.
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Flipping Websites Facebook Group – This group is run by the same owners as Investors Club.
Niche Website Flippers Facebook Group – Another popular Facebook Group for finding private sellers
Expect to pay a broker's fee. Depending upon the revenue that the site is generating this can be substantial.
How Much Will It Cost?
Typically you will need to pay a multiple of how much the site is earning each month. If a site earns $1000 a month, it would sell for $27,000-37,000.
What About Traffic?
Sellers will often "exaggerate" how much traffic a site is getting (and how much it's earning).
The tip here is to have the seller add you to their Google Analytics to allow you to verify if the traffic numbers are real.
This also lets you see the history of the traffic fluctuations.
Note: you will want to make sure that the majority of this traffic is organically coming from US-based visitors. Organic traffic is more consistent and easier to scale than paid or social.
*Click link below to finish reading this article
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