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Old 04-16-2008, 10:35 AM   #1 (permalink)
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Will you buy a established website?

I'm just thinking, if the website is making a steady profit, why would people want to sell it? (because most of them claims it brings them a steady cashflow of blah blah amount)
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Old 04-16-2008, 12:18 PM   #2 (permalink)
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Quote:
Originally Posted by forfun_cash View Post
I'm just thinking, if the website is making a steady profit, why would people want to sell it? (because most of them claims it brings them a steady cash flow of blah blah amount)
This can be for many reasons, both personal and business related.

Personally, someone may just enjoy creating their idea without any real plan but to focus on design and Search Engine Optimization and user experience/interface, then if it seems profitable and thus more "businesslike" tasks will be needed (cash flow, analysis, marketing strategy, etc) they sell it so they can use the knowledge base gained from that project to better the next.

From a business standpoint, it is a lucrative way to gain a profit off of work that you specialize in…and what I mean is that if you can create a site that works, functions superiorly, and drives in hits, multiple revenue streams, and can be strongly present in a particular niche, you can sell that to someone for a markup who may have the skills to lead the business side of the operation, but needed the means/face of the business (aka the site) to get there.

There are many people on here that do site flipping, or building and then selling even though they are profitable until the day they sell.

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Old 04-16-2008, 01:29 PM   #3 (permalink)
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Time value of money. Would you rather have $100 today or $500 in ten years? Depends how you think the business will do.
If the business is in the black, its a decision of whether you want a lump sum, or want a better payout by taking the risk and continuing to increase your value. (this is also true of negative growth from a PV standpoint)
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Old 04-16-2008, 02:26 PM   #4 (permalink)
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It's just like when Gillette sold out to Procter and Gamble. It was the biggest monopoly buyout to date. Why did Gillette sell? They made a million dollars every second of the day. Who could could say no to 57 billion dollars though. I mean think about it. I wouldn't say no either.

If you get what you think your business is worth, why not sell?

Now you can start all over and build an even bigger empire.
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Old 04-16-2008, 02:41 PM   #5 (permalink)
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You have to look to see how long the site has been in business as well. A lot of people like to spend 90 days getting a site going with $200 a month in income then sell the site for $1000-$2000. The problem is that as soon as the previous owner stops working on the site... it dies...

Also, (I run into this a lot) people say that have incomes of $200 per month or $2400 per year. What they never disclose (and too few people ask for) are their expenses. I could easily create a site today that would be creating $200 per month in income... but I might have negative profits. Meaning that they may be paying for the traffic that create their income.

You need to do your homework as a buyer and as a seller you need to give all the information. It is very easy to misrepresent a site as a seller and to misunderstand what you are buying as a buyer.
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