My experience buying a site on sitepoint

[dogisland]

I've written my purchase of a $10k website at auction on sitepoint.

I thought people here might be interested if you're a bit lazy like me and would rather buy income than generate it from scratch.

Anyway here it is My Experience Buying a $10,000 Website on Sitepoint (Part 1) | Ian Purton

[Dixiebelle]

Seems kind of scarry to me. I would think that Site Point would have handled the sale for you. I would have been afraid to send that much money to someone I had never met. You were lucky.

Dixie

[Writing Warrior]

That sure is a lot of money to spend. It makes my head spin just thinking about paying that much money to someone I'll never get to meet!

I'm glad you didn't end up getting scammed!

[Hamida Harland]

I've never bought sites for that much, but I've sold a few in the high four figure - low five figure bracket and I'd never do it without using Escrow and a contract. It seems pretty risky for both of you.

[derekwong28]

There is just no way I would have gone through the transaction without using Escrow. You were very lucky not to have been scammed.

[dogisland]

Vlad had some pretty good recommendation on another marketplace and that made me feel safer. My gut feel is that it would go well and it did.

[TimRobinson]

I don't understand. If it was making him solid income, why did he decide to sell the site?

[dholowiski]

Wow, I got nervous just reading that. I would have bailed when he wouldn't give me his address. I don't think I have the guts to do a deal like that. I look forward to part 2.

[Marhelper]

IMO it is not wise to buy a site over 2k without using escrow.

[BuySellSites]

Never SELL a website and accept paypal as the payment method!

Buying a site is not nearly as risky. All you have to do is pay using your credit card through paypal. If the seller doesn't transfer the site over to you, you simply file a chargeback and you get your money back.

As a seller, they are taking on an enormous amount of risk.

If you were an unethical buyer (there are lots out there), all you had to do was buy the site, wait until the domain name, hosting details and files were tranferred to you, then file a chargeback.

Now you have the business and your money. Not very good for the seller!

I learned this the hard way a few years ago when I sold a site for $5,000 and the exact same thing happened. Lost the site and the money.

Luckily, I've bought and sold over 100 sites since then and know all the potential pitfalls to watch out for.

Always use Escrow.com from now on, it's the only safe option for both parties.

Max

[Melody]

I recently sold a site for 35k - between the time I opened the auction at Sitepoint and closed the deal was 6 days - Buyer sent me a 5k deposit 30 minutes after our first phone call, I opened an account with Escrow.com and once they verified the transfer, the funds were released to me.

To be honest - I was amazed that the Buyer sent that much to my PayPal acct so quickly - I don't think I would have!

Escrow.com actually messed up and delayed the closing by a day but I have to agree that I would never do a deal without them - worth every penny I spent for the service!

[dogisland]

I think Escrow would be good for ensuring the domain/code is transferred but it doesn't remove the other risks.

i.e. will the traffic remain, will the sales remain. Will the seller re-surrect the site under a different domain etc etc.

I don't understand. If it was making him solid income, why did he decide to sell the site?

I guess he wanted the 2 years income in advance. Whereas

Buying a site is not nearly as risky. All you have to do is pay using your credit card through paypal. If the seller doesn't transfer the site over to you, you simply file a chargeback and you get your money back.

Agreed, and as a buyer It's nice not to have to pay escrow fees.

[Hamida Harland]

I don't understand. If it was making him solid income, why did he decide to sell the site?

Why not? I've sold quite a few sites for similar amounts - whenever I want to go on holidays, or have a shopping spree etc. The last site I sold paid for the deposit on my new apartment. It might not be sensible, but people can do whatever they want with their money.

I think Escrow would be good for ensuring the domain/code is transferred but it doesn't remove the other risks.

i.e. will the traffic remain, will the sales remain.

As the seller I've always offered an inspection period with Escrow (so that the buyer can be confident that the site is making income I'm claiming). It's up to the buyer to work on the site and keep the traffic and sales going - although for a five figure site I'd always offer at least a few weeks support. Plus I always write up a pdf on exactly how I run the site, how to promote it etc.

Will the seller re-surrect the site under a different domain etc etc.

That's what a contract is for - include a non compete clause.

[dogisland]

That's what a contract is for - include a non compete clause.

Do you have a pre-built contract you use or would you draw one up per sale ? Also what's the value of a contract across jurisdiction i.e. in this case the seller was from Romania.