I never thought it would go this fast, but we are presently buying another website! In the past few months, our online company has taken a major step forward in terms of increased traffic and making money ;-). While we were paying our business debt with our surplus income, we started to shop around… again!
Buying a website is like going to the bakery and buying your favourite desert (crème brûlée anyone?). It’s fun and exciting and I can barely think of anything else except the moment you take that first bite! But while this is very exciting, we have to keep our feet on the ground and pay the right price for the right site.
Then again, perhaps more appropriately. I should compare buying websites to buying a property. Some do it because they fell in love with the prospect, we try to buy the best valued property at the right price. You need to look at everything under the roof and aviod getting impressed by some fancy decorations!
I’ve already written a quick series about how to buy a blog a few months ago. However, there is always something to add about this topic ;-). In my previous articles, I had concentrated more on how to price a blog and proceed with the transaction. However, I didn’t talk much about how to determine what you want to buy.
Buying a website is an exciting adventure. There is always some risk involved for each party as you never truly know if the website will continue to grow or, gulp(!), collapse in a few months.
When we bought Gather Little By Little, we were looking at buying a very popular and well established blog. In fact, at the time of buying, GLBL was way bigger than The Financial Blogger. We wanted it that way because we knew we could learn a lot of things through this transaction.
This time, we wanted to buy an established website (more than 2 years) but we were not focused on huge traffic or readership. We were looking at a blog where we could use our experience to make it grow (and obviously pay a lesser price since it is not fully developed).
Why not creating a new blog on our own? Simply because it takes a lot of time to grow traffic and revenues when you start from scratch. You are better off buying a blog that has decent search engine traffic and build on this.
So the key points of what we were looking for were:
– A Good quality personal finance blog
– A Long history so it’s “Google friendly”
– Good readership but with great potential
– Page Rank of 3 (important for Google)
We were lucky as it didn’t take long to find the website, start the negotiation and come to an agreement.
While the purchase of GLBL took several emails of going back and forth with offer and counter offer (it was a big blog, so it was normal to have such negotiation going on), this purchase went quite smoothly. We started by offering our “homemade analysis” of the website and describe how we get to the offering price. Since it was a fair offer and we took the time to detail factors that influenced our price, there was much less negotiation.
When you complete any business transaction, I think it is very important that both parties find what they are looking for in order to end with a win-win situation. If it’s not the case, you may run into big problems sooner or later.
Sorry pals, no scoop for today… we are still in the transfer process so I’ll come back with more news once we fully own the website!
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