WOW - This is a tough one! Hundreds of thousands at stake. HELP!

10 replies
I was at a monthly "progress" meeting to day with an existing client and he told me he was very close to buying a website. However, he is asking me (as the expert) if he can verify all the information that the seller is telling him about the site.

Now, I have SOME experience in this because for a while I was into buying and selling websites (mostly on Flippa.com), but not on this scale. The website my client is looking to buy is in the HUNDREDS OF THOUSANDS of dollars. So naturally, I am a little nervous about giving him advice on this purchase and helping him with the verification process.

The website is an adult site, and it makes it's money in advertising. It reportedly gets 12 million visitors a month. He was also told by the seller that there were people signing up for subscriptions of $30 a month, but he hasn't launched his own "subscription thing" yet, so he was redirecting those subscribers to a different site for their access and goods.

Also, the seller says he has a guy who he pays regularly to keep the site updated with content. So apparently the content is taken care of by a third party.

Apparently, the purchase consists of 12 smaller sites that all sort of come back to the "mother website" which is a much bigger and broader website. All 13 of which my client would be buying.

Now, this is a HUGEEEE purchase, and I do not want to steer him wrong at all. I do have some experience like I said, but I want to be extremely diligent with the verification process so that I know for sure it is all legit. What my client wants to do is just buy the site, and maintain it and collect revenue. He doesn't want to make any changes, because it's a very profitable site, and he doesn't want to mess with something he doesn't know much about. But still, that would mean he would have to keep the advertising spots filled, and other stuff like that.

As far as the revenue, I don't have to worry bout that. My client is going to review the sellers books and verify all of that on his own. What he would like me to do is verify the traffic, figure out what type of maintenance is needed, and basically just verify anything else the seller is claiming.

In my experience, the way I have always verified traffic is by Analytics snapshots, or access to the sellers Analytics dashboard, but with a site this big and profitable (and costly) I really want to be extra extra thorough with ALL of my verifications.

I would realllllly love it if anyone who has some experience or knowledge to share on this matter would do so. I think this could be a great project for me, and my client will end up super happy. I just don't want to miss anything or make any mistakes that could make things go bad for both of us.

Let me know what you think. Thanks so much!
#hundreds #stake #stats #thousands #tough #traffic #verification #verify #wow
  • Profile picture of the author DogScout
    The only thing I can think of off the top of my head is when looking at the logs, make sure the traffic IS coming from where he says and not some PPC networks.

    I am sure you have a 'spy program' which can tell you if he uses Adwords/AdCenter, etc, but there are a lot of PPC networks. If he is saying the bulk of the traffic comes from the satellite sites, the logs should reflect that. You also need to see the satellite site logs to see where that traffic is coming from... NOT UNDISCLOSED PPC networks. That means checking referring URLs to be sure you are not finding banner ads, etc that he is not disclosing. I am sure he is spending some money on advertising and marketing, you need to be sure the logs from the site and the satellite sites bear that out. (& that refferals from search are not Adwords/AdCenter ads).

    Good luck
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    • Profile picture of the author tpw
      I agree with Mark...

      Checking the logs is essential, and verifying the source of click-through's if at all possible...

      Also Google the domain names, and see if there is additional info to see...

      If the guy has a Google Analytics account, ask to review that as well...

      Also, if you are at all worried about your own experience to identify the legitimacy of the deal, let your client know that you would feel better to have a third-party come in to check your research...

      Simply explain to your client that he is talking about a lot of money, and you don't want to make a mistake in your analysis...

      By bringing in one more consultant, you can build your own confidence in your findings, and have a second set of eyes analyzing the available information... And you will have a reliable sounding board to iron out any lingering questions in your own mind...
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      • Profile picture of the author joeyjamz
        Thank you both so much for the helpful info. I hadn't thought of using a third party to cross-verify as well, but thats a great idea.

        I actually DONT have a Spyware type of program that tells me if a site owner is using PPC or not. I haven't even heard of that before. I am not experienced in PPC at all, only SEO. So tell me this, would I be able to find out all the necessary traffic information by accessing the sellers Analytics? Because that's what I plan on doing. Wouldnt that tell me all sources of traffic and I would be able to determine just by that alone?

        Let me know what you think. And thatnk so much for the help
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  • Profile picture of the author Brad Gosse
    Feel free to email me some of the details. I know most of the people in that biz and can do some digging for you. sales@yourbrainmedia.com
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  • Profile picture of the author Maddi
    Half way through the post I immediately thought of someone who has been in the biz and could help you out with real experience and background in that industry.

    Only to scroll down and find that person has already posted above me

    Hope you get it sorted.

    Maddi
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  • Profile picture of the author Steve Faber
    When dealing on that scale, make sure you have good E&O insurance.
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  • Profile picture of the author Shannon Herod
    The best thing, and ethical thing, is to tell your client you are underqualified to advise him on this decision. Because in reality you are. Swallow your pride and do the right thing.

    Shannon
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  • Profile picture of the author Mike Hill
    I would make an agreement that involved benchmarks... A certain sum of money upfront (like 25%) then at each quarter another 25% just to protect yourself. Use an escrow for these transactions and if the seller is offended by that then move on...

    This is just my opinion but you have to be careful when dealing with this sort of thing.

    You could also get a 3rd party to review the site to make sure everything is above board and nothing has been exaggerated. There are companies that can do this for you I'm sure...
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  • Profile picture of the author seanicasia
    Well, it's always a good idea to come from the point of under-promise and over-deliver.

    Like you said, there's a lot of money at stake here, and the responsibility is on you. Are you confident enough to shoulder that responsibility should there be an error in judgment?

    Also, even though your client might say he wouldn't touch the whole project after buying it, would you know what to do IF and WHEN something needs to be done, like when traffic suddenly drops, or when the subscription starts and people have complaints?

    One, you can either bring someone experienced and competent on board to split the profits or two, just be honest with your client.

    As Russell Peters said ... do the right thing
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  • Profile picture of the author lacraiger
    my opinion is your partner shouldn't be getting into something that he has no clue about.

    talk about a blind investment.
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