This document provides lessons learned from acquiring websites worth several million dollars. It outlines key questions to consider when buying or selling websites, such as reasons for the transaction, expected return on investment, and risks. When buying a site, thorough due diligence is important, including researching the site history, competition, and traffic sources. Proper planning is also key, such as developing migration and expansion plans. Effective tools can help with due diligence, and additional questions should be asked of sellers to fully understand investment risks and opportunities.

1. Lessons Learned from Several Million
Dollars Worth of Site Acquisitions
Chuck Mullins
Founder
CashForYourSite.com
Chuck@CashForYourSite.com

2. Questions to Ask Yourself
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Why buy and sell websites?
How much is my time worth?
Do I want a Job or an Investment?
What kind of return on my capital investment do I
need?
What size deal makes sense?
What kind of risks does the site have?
What are my plans for this site?

3. Why Buy or Sell Websites
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Know your reasons for buying:
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Cash flow
Asset appreciation
Synergy
Untapped potential
In-house link network

4. Why Buy or Sell Websites
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Know your reasons for selling:
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Cash out
Redeploy capital
Declining market
Focus on core business
Bored

5. How Much is Your Time Worth
$100k a year / (52 weeks x 40 hours) ≈ $50 per hour.
Don't work for less than you are worth:
Website Monthly Income = $1,000
Hours Required Per Week = 10
$1000 / (4 weeks x 10 hours ) = $25 per hour
Website Monthly Income = $10,000
Hours Required Per Week = 10
$10,000 / (4 weeks x 10 hours ) = $250 per hour

6. Do You Want a Job or an Investment
Site For Sale : $3000 a month pure profit.
Would you buy this site for a 6 month multiple @
$18,000?
What are the real costs in terms of time?
Hours Required Per Week = 40
Hourly Pay = $50
$50 x (4 weeks x 40 hours ) = $8,000
$3000 / (4 weeks x 40 hours ) = $18.75 per hour

7. What Kind of ROI Do You Want
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Typical investment:
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CD Rates 1%
Bonds 2-6%
Stock market 7-12%
Real estate 5-14%
Why do these investments pay different rates
of return?
What kind of return do you want?

8. What Size Deal Makes Sense
$100k x 25% = $25k per year
$50 x 40 hours x 12 months = $24k per year.
Total return needed on $100k investment would be $49k or a
49% time and risk adjusted return.`
$500k x 25% = $125k per year
$50 x 40 hours x 12 months = $24k per year.
Total return needed on $500k investment would be $149k or
a 29.8% time and risk adjusted return.
The larger the deal, the less your time requirements impact
the return.

9. Is The Investment Worth The Risk
How do you evaluate the risk of an investment?
Which company looks the most risky to you?
Price evaluation and risk are two very different things.

10. Is The Investment Worth The Risk
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Has the site been affected by Google updates?

11. Is The Investment Worth The Risk
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How much competition is there?
What are the barriers to entry?
What kind of SEO has been done?
− White hat vs black hat

12. Is The Investment Worth The Risk
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What is the traffic mix?
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Organic traffic
Paid traffic
Social traffic
Direct traffic
Referral
Affiliate

13. What Are Your Plans For The
Site
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Get a detailed plan and time line before closing on a deal
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Migration
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Operation
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Backup website
Transfer domain
Update income sources
Take/transfer accounts
Transfer website
Who, what, when
Expansion
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Who, what, when

14. How to Transfer the Site
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Communication is Key
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What is your pain point?
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Agree on specific terms and a transition plan before you
agree to purchase the site.
High value vs. low value sites
Prepare a contract detailing the terms of sale:
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Time frame and consequences for transfer
Payment Terms
Seller Support
Non-Compete
Non-Disclosure
Non-Performance

15. How to Pay For a Site
Send Payment First:
• Escrow.com
• Paypal.com
After Transfer of Domain and Files in Hand:
**Warning these methods have little to no recourse!
• Check
• Cash
• Wire Transfer
• Western Union

16. Where To Buy and Sell Websites
Auctions
- Flippa.com
- Ebay.com
Broker
- QuietLightBrokerage.com
- Latonas.com
- WeSellYourSite.com
- AcquisitionsDirect.com
- WebsiteProperties.com
- W3BusinessAdvisors.com
- WebsiteBroker.com

17. Where To Buy and Sell Websites
Market Place
- CashForYourSite.com
- BuyingandSellingWebSites.com
- BizBuySell.com
Miscellaneous
- Craigslist
- Forums
- Contact Site Owners
- Networking

18. Due Diligence Tools
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(F/P) - OpenSiteExplorer.org / Moz.org
(F/P) - SEMRush.com
(F/P) - MajesticSeo.com
(F/P) - SpyFu.com
(F) - BannedCheck.com
(F) - SeoMastering.com
(F) - YouGetSignal.com
(F/P) - DomainTools.com
(F/P) - CopyScape.com
(F) - Alexa.com
(F/P) - Compete.com
F = Free
P = Paid

19. Due Diligence Tools
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(F) – Archive.org
(F) – BuiltWith.com
(F/P) – Topsy.com
(F) – TradeMarkia.com
(F) – SocialMention.com
(F) – Google Trends
(F/P) – WhoRush.com
(F/P) – ReverseInternet.com
(F) – SpyonWeb.com
(F/P) – KeyWordSpy.com
F = Free
P = Paid

20. Additional Due Diligence
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Read the comments of other prospective buyers
Research the seller not just the company
Ask questions that you have already researched and know the
answers to
Ask seller to add you to their Google Analytics account
Ask questions about potential revenue streams
Ask what plans the seller had for the business moving forward
Ask seller to verify all claims with documentation
Ask about anomalies
Ask about skills and time required to operate the site
Ask, Ask, Ask!!!

21. Lessons Learned from Several Million
Dollars Worth of Site Acquisitions
Chuck Mullins
Founder
CashForYourSite.com
Chuck@CashForYourSite.com