Questions Frequently Asked Concerning the Purchase of a Website :: Sell Websites Buy Websites

Questions Frequently Asked Concerning the Purchase of a Website Reprinted with permission of VotanWeb.com What are the key motivators for people to buy a website? Before making a decision to purchase a website, a buyer should understand his or her objectives to make sure those objectives can be met by purchasing a particular website. Surveys of people purchasing websites reveal similar responses. Surprisingly, making money is not at the top of the list. Here is a list of the typical answers, in their order of importance: I want to control my own destiny. I would be happier if I worked for myself. My current work does not take advantage of my skills and abilities. I want to make a lot of money. Should I start my own website or buy an existing website? An existing website has a historical track record (good or bad) which can be used to evaluate the website. An existing website has usually shown there is demand for its products or services, and it should have, among other things, detailed financial records. Sometimes, a seller of a website will agree to help to train a new owner. These are important factors because many websites tend to fail during the early stage of their development. On the other hand, there can also be disadvantages to buying an existing website. A buyer will be assuming an established website culture and infrastructure which may make implementing changes more difficult. Also buyers will generally have to pay a premium for an existing website. What should I be looking for in a website? A buyer should only consider a website he or she will feel comfortable owning and operating. The time and effort which will be required is an important consideration as is how much the buyer can afford to pay for the website. The amount of cash the buyer needs to regularly take out of the website is very important, especially if the website is to be the buyer's only source of income. Because many experts believe you should not purchase a website unless you can make it better, it is helpful if a buyer has some definite ideas on how to improve the purchased website. Can I obtain financing to help me buy a website? The availability of outside financing will depend upon the asset base of the website, its operating history, collateral availability and projected cash flow - the same issues considered in all business lending.