Nowadays, the appealing return from buying an internet business has gotten a lot of web flippers in the industry. These webmasters build sites within a matter of weeks, get high levels of traffic and prepare a quick profit. After being in existence in just mere months, then they sell their websites to interested buyers and “guarantee” to increase their business’s profit. At first glance, the product seems like the solution to investors' prayers but actually, it could be too good to be true.
Buying any website from a Broker Corp is quite critical and it’s just like an investment. Whenever you invest, you ought to see all the advantages and drawbacks of it. Good revenue and good traffic source should not be enough to commit you to buying a website. Knowing the website’s history, the revenue trend, the traffic quality and time and expertise necessary to maintain a website are all vital before making the purchase. Your ultimate goal is to make sure that you uncover everything about the business before buying it.
Checking the website’s history is important to ensure that the site did not suffer from any long-term reputation problems. A careful analysis of the revenue trend is also vital that you make sure that the revenue the web site has been generating is sustainable rather than just seasonal. Another area to search into is the traffic source to properly identify where the revenue is coming from. Maintaining the website and keeping it current is also as important as the other variables as a good site will continue to grow.
When investing into an online business or website buying, it is highly recommended to employ the services of Website Brokers. A website broker is comparable to a real estate broker, except that in the place of trying to buy and sell houses for clients, they buy and sell website businesses for clients. The benefits are chiefly convenience-related. A website broker can manage many of the sales details for you, including the sales procedure itself. A website broker is not a requirement for everyone who is looking to flip websites but hiring one can give you a little peace of mind knowing that you are getting the most out of your business.
Wednesday, August 31, 2011
The Best Time for a Broker Corp to Sell
A good website can make a great deal of money. But a good website may even provide you much more money in the future. Try to ask a Website Broker, exactly why sell ?
Below is just not intended as investment advice, but it surely provides you with several things to think about when selling.
WHY NOW IS THE TIME NOT TO SELL…
Selling devoid of plan. Selling your business and having a million dollars in the bank is plain stupid if you don't have a plan for it. In case you don’t own an asset that's appreciating at the same or greater rate compared to the asset you are selling (where and asset is identified as a thing that generates you money, might be property, a small business etc.) then it is probably not the right time to sell.
Selling in a bad financial position You're going to get a significantly lower multiple for your business if you have had a bad financial record during the last year or two in comparison to historical data. When possible, retaining the company and increasing the financial position of the business can get you a larger sale price. Or, if you need the income quickly, to pay for an impending bill, deadline. Ask yourself are there other avenues to consider that could be a chance. Including, selling a share of equity or asking for an extension on the imminent deadline. You may be cutting yourself short if you don’t explore all avenues.
Selling to settle manageable debt Let’s if you have $25,000 in bad debt from college. You are thinking of selling your website through a Broker Corp for $100,000 to pay of that debt and put some cash in the bank. The payments on that debt are $300 a month. So the current site can maintain that debt can probably. It may be an idea to take that $25,000 and over the next year and invest that money into your $100,000 website and after 12 months it is now worth $200,000. Think about the opportunity cost of that money and consider those when selling.
WHY NOW IS THE RIGHT TIME TO SELL… When the Opportunity Cost is Higher not selling With limited resources such as time, energy, talent, people, capital. If they are better invested in other ways then it may be time to sell . The opportunity cost of being involved in your current Company/Business might include giving up:
• Another business venture or opportunity
• Time for rejuvenation and reflection
• Friends, family, and grandchildren
• Diversification of investments or reduced risk
• New challenges, intellectual stimulation, or education
• Health, travel, community involvement, spiritual service
• Or, any other opportunity that cannot be pursued because of the demands of your current Company.
Below is just not intended as investment advice, but it surely provides you with several things to think about when selling.
WHY NOW IS THE TIME NOT TO SELL…
Selling devoid of plan. Selling your business and having a million dollars in the bank is plain stupid if you don't have a plan for it. In case you don’t own an asset that's appreciating at the same or greater rate compared to the asset you are selling (where and asset is identified as a thing that generates you money, might be property, a small business etc.) then it is probably not the right time to sell.
Selling in a bad financial position You're going to get a significantly lower multiple for your business if you have had a bad financial record during the last year or two in comparison to historical data. When possible, retaining the company and increasing the financial position of the business can get you a larger sale price. Or, if you need the income quickly, to pay for an impending bill, deadline. Ask yourself are there other avenues to consider that could be a chance. Including, selling a share of equity or asking for an extension on the imminent deadline. You may be cutting yourself short if you don’t explore all avenues.
Selling to settle manageable debt Let’s if you have $25,000 in bad debt from college. You are thinking of selling your website through a Broker Corp for $100,000 to pay of that debt and put some cash in the bank. The payments on that debt are $300 a month. So the current site can maintain that debt can probably. It may be an idea to take that $25,000 and over the next year and invest that money into your $100,000 website and after 12 months it is now worth $200,000. Think about the opportunity cost of that money and consider those when selling.
WHY NOW IS THE RIGHT TIME TO SELL… When the Opportunity Cost is Higher not selling With limited resources such as time, energy, talent, people, capital. If they are better invested in other ways then it may be time to sell . The opportunity cost of being involved in your current Company/Business might include giving up:
• Another business venture or opportunity
• Time for rejuvenation and reflection
• Friends, family, and grandchildren
• Diversification of investments or reduced risk
• New challenges, intellectual stimulation, or education
• Health, travel, community involvement, spiritual service
• Or, any other opportunity that cannot be pursued because of the demands of your current Company.
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