So you want to buy a website?
While it’s something online and may not feel tangible, it’s still an asset and an investment much like brick and mortar businesses.
That means with the gains you might at not needed to start something from the ground up, there are also risks. Whether you’re interesting in flipping a website (where you buy and sell at a higher margin) or keep it and use that to generate cash flow, you need to make sure you understand how to value a blog.
When done correctly, buying a website can reap some big rewards. Read on to find out how to value a blog and buy your first website relatively safely.
Figure Out Your Risk Tolerance
Before you go and buy a website, think about how much you’re willing to lose. Not to say that will happen, but you can’t guarantee anything. So take a good hard look at your finances and emotions and ask yourself how much you’re willing to risk. Is it $5,000? $500? If any number makes you queasy, then you’d want to reconsider if this is the right step for you.
If you decide on a maximum number, think about how much time you’re willing to put into the business. Obviously the more time you have the better, but see how much you’re willing to commit to this new venture.
Figure Out What Types of Sites Will Grow
You’re obviously in this to make money, so you’ll need to find a website that will have cash flow potential. Ideally, you want a niche that is evergreen. That means it’s not just fueled by a passing trend and may go out of style one day. Examples of evergreen niches are electronics, sports, beauty and health, and even insurance. These niches have the potential to be around long term, not just really popular one day and gone the next.
You’ll also want to figure out how competitive the niche is. If you see a lot of competition and can’t dedicate a lot of time to grow the business, you may want to look elsewhere. Also, take a look at similar websites and see how they monetize their website. This can also give you an idea of how competitive or profitable that niche is. Think about how the website you’re interested in buying is ranking for in the search engines and if there’s any potential to grow even more.
Finding Sites for Sale
This part can be tricky if you don’t look to reputable places to buy websites. You also want to see what kind of quality the website is. If you’re not sure how to value a blog, a good rule of thumb is the value should be about 12 to 18 times the monthly income it’s making.
Here’s a list of some places you can check out that has websites for sale:
Buying a website doesn’t have to be a long and arduous process. You just have to do your due diligence, assess your risk tolerance and go for it. Will you be buying an online business anytime soon?