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Just as with other forms of assets whether they be Stocks, Bonds, Real
Estate, or traditional "brick and mortar" businesses, Internet
properties in the form of websites, domain names and Internet businesses
can have significant value and represent a source of recurring income
for intelligent investors. Additionally, their portability, flexibility
and relative ease of market entry make them attractive options to Investors
and Operators alike. We aim to provide Investors and Sellers with an intuitive
and robust tool for researching and marketing websites, domain names and
Internet businesses.
We are always looking for new and exciting resources, if you have potential
additions or suggestions for this section, please feel free to Contact
Us.
Tips for Investors from SiteHedge.com
- Verify all site traffic, expenses and revenue claims via reports
and statements from the Seller. Traffic statistics and keyword popularity
can all be verified via applications installed on the webserver. Even
the cheapest of hosting accounts come with fairly robust stat packages.
Revenue from online advertising can be verified with publisher's reports
and bank statements from the Seller.
- Work out the details of web hosting and post transfer support from
the previous owner. Depending on your situation you may want to leave
the site on the existing server or move to your own. Also, there are
bound to be questions post transfer, so get the Seller to commit to
post transfer support for a given period of time.
- Agree in advance to all specifics of the transfer. Put these details
into writing. At the very least, an email or FAX stating all terms
of the transfer.
- Utilize a reputable online Escrow service such as Escrow.com to
mediate the transfer of funds, title, etc.. This allows you to gain
possession of the product and review it before releasing payment to
the Seller. For more complex transactions, you should seek out the
services of a qualified Accountant and Attorney.
External Resources for Investors
Tips for Sellers from SiteHedge.com
- Be sure to note an asking price on your ad. Investors are more inclined
to make you an offer if they know the price range that you are in.
- Be realistic about the asking price of your Internet property. Sure
there are some exceptional domain names that will hold their value
whether or not there is a revenue generating site in place. However,
for the most part, if you are not generating revenue and do not have
a complete site in place, then there is going to be a finite market
for resale of your Internet property. At the same time, if you have
a great site in place that has cash flow, then you have a strong basis
for determining market price.
- Be sure to list as many details about your site or domain name in
your ad. Don't skip the traffic, revenue and other fields if they
apply. Having these stats available is attractive to buyers and will
draw more serious sales inquiries.
- When documenting stats, expenses and revenue on your ad, try to
be as accurate as possible as serious buyers will want to review your
reports and statements. If the reports don't match what is advertised
in your ad, then you will run the risk of losing negotiating leverage.
- Make sure that you can document all site traffic, recurring expenses
and revenue.
External Resources for Sellers
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