When done properly, buying websites can have a higher return than real estate investments and trading shares.
Tips for buying profitable websites
- See for yourself exactly where the current source business is coming from. If it's Google, look for proof in Google Analytics and then also manually do a search on Google for that search term. If it's PPC or ads, check the PPC account and the ads reciepts for the amounts that are actually spent. If it's "word of mouth", actually speak to some customers and make sure. Check every source.
- Check how old the website is. The older the better.
- A new website that has "potential" is probably worth nothing more than a few hundred dollars. They are probably setting up copy 'n' paste websites for $0 a pop.
- Check proof of profit. See more than one form of proof.
- Consider the time and costs of running a website. Many website owners don't consider the value of their own time.
Where to buy profitable websites
http://feinternational.com/Professional team who target the selling of medium to premium internet businesses
http://www.buysellwebsite.com/ Usually lower value websites
http://centurica.com/ They list all the current websites for sale. They also provide due diligence documents for an extra level of protection.
http://wesellyoursite.com/ Targeting high end websites. Only a few listings.
http://flippa.com mostly rubbish websites. Lots of scam artists!
http://www.flipfilter.com/ Needed to at least filter some of the rubbish on Flippa.