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what are the pros and cons of buying an internet business?

Is the due diligence process different? What type of questions to ask about the business?

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Answers (7)
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We are financial consultants to a group of investors whom we have their consent to manage their funds which is in our custody for cooperation in joint venture business investments.

Our areas of interest include Property Development and real estate, Health Care, Education and training, Mining and exploration, Energy, oil and gas,Technology, Software development, Agriculture, Manufacturing, Finance Services and Leisure.However, all viable proposals within reason will be considered.

Funds shall be made available to you as a direct investment loan at 3% interest rate per annual for a period of 2 or 30 years depending on what you prefer. You may contact us if you have interesting investment proposal for possible business collaboration for our study.

We look forward to your reply to enable us provide you with details or you may visit our website.

Kindly acknowledge receipt of email.

Thank you.

Yours Sincerely
Jesse Peterson
phone: (980) 239-7539
email: info@interventionmortgagefirm.com
web: http://www.interventionmortgagefirm.com/

Jun 6, 2017
jim thomas

Football Web Site for Sale-12 Year Old
Google Rank of 4
please let me know if you have a client interested in this acquisition

This web site was established in 1998 and has grassroot marked in 20 countries over 100 cities across the USA and Canada. Its a fully developed sports web site for sale. Its the leader in the niche football market and is currently ranked # 1 according to google for the sport. Name Brand Recognition Internationally. The Web site is an easy seven letter.com domain with 20,000 unique visitors during football months, and 10,000 during non football months. This is a Turnkey operation and can be run from the home. Site has 50 products listed with dealer contract. Drop Ship With 30-50% markup

Asking Price-$99,000

Facilities: Single word dot com domain. This is a 7-letter "product" domain. Sale includes fully functional website + all content and databases. Over 30,000 emails addresses, 2000 Fans on Facebook.
Competition-Several Small business who fail every 3-5 years.

Growth/Expansion: 12 million people play the sport, Its also promoted and sponsored by the NFL.
Industry sales are 5million for sport directly. International opportunity is large. . Revenue is small in the following categories and needs to be improved, Celebrity Events(Including Superbowl), Licensing, apparel, Membership, Advertising Sales ,eccomerce, Camps & Clinics.

Support/Training: This is a turnkey operation. Owner is willing to stay on and take percentage.
Reason Selling: 12 years of working alone, the business needs strategic partner to help capitalize on the brand name.

Asking Price-$99,000

please let me know if you have a client interested in this acquisition
Email me at JZcostarica@gmail.com

Jul 14, 2010
Buy-a- Company

Ted,

You are thinking correctly on this. Some good, old-fashioned present value of future cash flow analysis is necessary. Don't forget to subtract out the value of your time for the hours you need to spend running this.

BTW, if you Google the top keywords for this type of business, where does it show up? If it's not near the top now, and you expect it to get worse, I would pass.

May 13, 2010
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Fairfax County, VA

Buy-a-Company,

Thanks for your advice. The potential weakness of the business is that more competitors are coming into the market, and they seem to have much more funds than I can afford, to do a lot of internet ads and SEO. So if we don't do anything to market it, in 2--3 years, this site might slowly go out of business. That is why simply looking at the ROI for the valuation is not OK in my mind.. The verification of numbers is not an issue in this case because I know the seller and there is a great deal of publicly available info about him. He has agreed to allow me a period for due diligence before I pay for anything. I am not buying it on some auction site. But still I need to decide if going through all that hassle and spending time is worth it.

May 12, 2010
Buy-a- Company

Ted, if you like the business, can get a pretty clear vision of where you want to take it, and feel comfortable with its future, (and can verify the numbers), then go for it.

I cannot emphasize enough the "verify" part. There are many fly-by-nighters selling websites. I've seen plenty that purport to make $5000 per month and they want to sell them for $2000. Yeah right.

In my opinion, a legitimate internet business that makes money and has good visibility is worth 2.5x cash flow. That's a 40% ROI! Subtract out the value of your time working the biz to get a comparable ROI.

Give me some examples of what you've seen on that other site. I'll bet we can find the faults.

May 12, 2010
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Fairfax County, VA

Hi Buy-a-Company,

I saw that you said somewhere you have experience buying websites. I am talking to an online business owner about purchasing his site. He is asking close to 2.5 times the trailing 12-month earnings. It has a solid 5 year earning history and the owner has shown me the financials. The revenues have fallen slightly after the first 3 years but it has been pretty steady in the last 2 years.

There is a good chance that we can improve it and get more earnings. That is the plan of course--and the owner is selling because he doesn't have time to improve it. Do you think about 2.5 times 12 month earnings is a good valuation for online businesses as long as we can verify the earnings?

My worry is that on flippa.com, I see many sites selling in auction for less than that. I understand that it depends on the site, but I am concerned about overpaying.

May 12, 2010
Buy-a- Company

I disagree with Net Biz. You need at least 2-3 years to judge. One month is nothing.

One important issue is, how hard would it be for a competitor to knock off your business model, get better search engine placement, and kill your sales? Most net businesses have intense competition. If they are new and successful, look for many new competitors soon.

Some work-from-home competitors are willing to work with very low profit margins, so lack of competition and barriers to entry are critical. Never buy a "me, too" business!

Make sure you can verify sales, traffic, ad expenses, as there are a lot of scams out there.

May 11, 2010

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