It’s always a good idea to make a complete plan before you purchase a website. Try to think of every aspect of owning a website. Coming up with foolproof answers to these questions will be your best defense against making a purchase you will later regret. This plan is often better implemented when you write it out. This provides a visual reference as a checklist, so you leave no question unasked or unanswered. If you go into a purchase without a plan, the outcome usually isn’t a positive experience. Here are some further questions to ask before you consider your plan complete:
Is This Site Going to Fit into Your Business Model?
You need to figure out how this website will fit in with other virtual properties you already own, if it even does. Maybe you are looking to purchase a site and flip it. It’s a consideration you need to make before finalizing the purchase.
Do You Have an Exit Strategy to Implement When You Want to Sell the Site?
It’s often unlikely you will keep this site forever. Even if you are certain you won’t ever want to part with your newly purchased site, it’s always a good idea to have an exit strategy. Are you going to sell it? Can you combine it with another website you own? Are you willing to let it just go by the wayside? These are all considerations you need to figure into your plan before purchasing a new site.
What Will This Site Do to Help Your Business Grow after You Buy It?
Don’t buy a site just because it’s shiny. You should have a good reason for wanting to make the purchase. Maybe it will lead more traffic towards a few of your other websites. It may attract many more new customers to your current business, thus helping your company quickly expand. There are many possibilities. It’s always helpful to brainstorm several ideas and keep an ongoing list, in case one idea triggers another later on.
Who Is Going to Be the One to Do All the Work on the Site?
Be sure to have someone who can keep the new site going. If it will not be you, then you definitely need to have a person who will be in charge of keeping the site running smoothly. You can’t purchase a new site that is doing well and expect it to continue being successful without at least some maintenance. Hiring someone may be necessary, unless you want to take some of your own time to make sure the new site continues to be profitable. It won’t be worth the money spent if you let it go by the wayside, just because you didn’t figure upkeep of the site into your purchase plan.
Where Is the Money Going to Come from to Keep the Site up and Running?
A good business plan budgets for investing. Borrowing money is sometimes the only way possible to afford the purchase of another website. Be sure to count the cost. Knowing exactly how much money you will need to buy the site, and the amount necessary to maintain it successfully, is the key to not going broke from the purchase. It’s also important to know where this money is coming from. Are you going to borrow from a bank? Are investors going to supply the funds? Some loans charge a high interest rate, so you’ll also want to know this in advance.
Many sites are so successful, the revenue covers the cost and any ongoing maintenance. There also may be enough revenue being generated from other sites you own, providing a plentiful flow of money coming in for whatever you need.
Making a website purchase on a whim can excite and pose many problems. It’s best to learn more about the seller.
*Originally published on WorldStart June 18, 2010
