Would you buy a website with loan money?

25 replies
Hey guys.One of my buddies is going got a loan around $4000.

Now he is thinking, to buy a ready website on flippa and with revenue paying a loan.
what do you think about this?
I told him that it is a bad idea because you should watch after the website, ads and all it will also cost to you. and the traffic wont be there forever.

what is your opinion?

Thanks guys!!
#buy #loan #money #website
  • Profile picture of the author Gambino
    Far to many variables with both your friend and the website to give any advice. If his plan is simply to buy a website and pay off the loan with the money the website is making without doing anything else... I would say it's probably a horrible idea.
    {{ DiscussionBoard.errors[10923878].message }}
  • Profile picture of the author 727kristie
    I agree with you!! Sounds like a bad idea :-/ As they say, don't put all of your eggs in one basket. Way more secure ways to invest $4k. Just my opinion :-)
    {{ DiscussionBoard.errors[10923893].message }}
  • Profile picture of the author Woomeister
    I'm not sure what sort of site he (you?) expects to get for $4000 that has enough revenue to pay anything really.
    {{ DiscussionBoard.errors[10923895].message }}
  • Profile picture of the author Kay King
    I think it's a horrible idea - and he sounds very new to working online.

    Does he have the money to pay off the loan if the site fails? Probably not.
    Signature
    Saving one dog will not change the world -
    but the world will be forever changed for that one dog.
    {{ DiscussionBoard.errors[10923909].message }}
  • Profile picture of the author agmccall
    What was the purpose of the loan in the first place

    al
    Signature

    A bar of iron cost $5. Made into horseshoes, it's worth $12. Made into needles, it's worth $3500. Made into balance springs for watches, it's worth $300,000. Your value is determined by what you are able to make of yourself

    {{ DiscussionBoard.errors[10923921].message }}
  • Profile picture of the author Kay King
    Good question....the loan was to buy a website that will hopefully make enough money to pay off the loan?
    Signature
    Saving one dog will not change the world -
    but the world will be forever changed for that one dog.
    {{ DiscussionBoard.errors[10923928].message }}
  • Profile picture of the author allancaeg
    Dangerous idea.

    If you're at a point that you need a loan, there are surer and faster ways to make a profit. You can begin the stair step process by using someone else's platform.

    Building a business on someone else's land (e.g. Udemy, Fiverr, Airbnb, UpWork, Etsy, CreativeLive, etc) is also a "loan." It's the business debt of getting access to an audience without building a platform. You pay for this by playing by the platform owner's rules.

    I'd rather pay the platform debt rather than borrowing money.
    {{ DiscussionBoard.errors[10923952].message }}
  • Profile picture of the author vikingmarketer
    Well first of all I like his thinking. Use other peoples money to get an income producing asset.

    Although it has some flaws.

    1. 4k for a pretty good established website with traffic and revenue which isn't just nickles and dimes(exagerating to make a point). Is very rare to come by also due dilligence is a must.

    1.A: If he decides he really wants to buy a website then DON't buy warez type sites and entertainment sites can also become a problem. Generally speaking yeah they are easier to drive traffic to, but often people have a harder time monetizing them.

    1.B: If he can he should probably buy a website with some sort of asset e.g. a customer list,a subscriber list,members or perhabs some decent social media profiles. Because he can leverage that and better grow the site or if there isn't any of that stuff. Then he better get it setup if he buys a site.

    2. Another option is basically this:
    Pick a decent niche by where people will pay money to help them overcome things easier or fix their issues. Generally speaking wealth,health and love are the big 3 and then you can chop them up into smaller markets. Find a good offer on cb for it above 30 gravity and about $25 in commissions. Remember to check if the salespage and all would compel people to buy.

    Find some plr or write your own sexy report that you giveaway on a squeezepage.

    Signup for an autoresponder and have at least 3 emails besides the thank you for subscribing email. They should all lead back to the aff offer. Although don't hardsell value and then entice them to click the link.

    Now learn about paid traffic and free traffic and promote the crap out of that.

    Ofc if the budget is 4k maybe get somone to write a small email sequence.
    {{ DiscussionBoard.errors[10923975].message }}
  • Profile picture of the author ibuywireless
    A long time ago I read the realist thing I ever read about niche sites some guy said "Dont buy a income producing website until you know how to build one" at first I was like "if I knew how to build one i wouldnt need to buy one" but i thought about it and taught myself how to build profitable websites. Tell him save his money and start his own site. If hes really lazy he can outsource the content but without knowing what hes doing it would be a losing battle
    {{ DiscussionBoard.errors[10924066].message }}
  • Profile picture of the author workfromhomeonly
    Hello Friend,

    My Suggestion :

    Its not complete bad idea , if you have website knowledge, adsense experience sure you can proceed.

    My Point of View Risk Factor is 50%.


    Thanks
    Bharathi.
    {{ DiscussionBoard.errors[10924091].message }}
  • Profile picture of the author PinkStar
    Time is money, so it can make sense to buy a ready-made website. But only if your friend knows the niche and how to market it. Or the traffic will dwindle and so will the income.
    Ask your friend what his plan is and if he doesn't have one, explain that a website doesn't run itself.
    Signature
    Move it along folks, nothing to see here
    {{ DiscussionBoard.errors[10924179].message }}
  • Profile picture of the author starlox
    Well the short answer is NO, but it is with an *. I assume since you mentioned taking a loan and buying a website he/she has never done something similar to this before then i would advise staying as far away from these types of places. Why?, you may ask. First before buying a website of flippa you need to do a thorough background check on the site, since your friend is doing it first time he may not know how to properly do it. Some examples: how is the site making money - is it through ranking, ads whatever. So your friend may buy the site but all the traffic coming to the site is though ads and the webmaster may now how to do it, your friend not. Second it's easy to manipulate the amount of visitors of the site, so your friend may buy the site and find out most the visitors are fake or redirected to the site. And so on and so on.
    {{ DiscussionBoard.errors[10924354].message }}
  • Profile picture of the author shaqsquash
    Depends on how expensive the loan is. Some loans charge huge interest + fees and have aggressive payback terms. I once took out a 18 month loan for $3000 and it would have costed me $10,000 had I not payed it back fast.

    If he can grow the site faster than the cost of the loan and pay back the loan with the site profits it could be worth it. For example if the site was 3000 and made $250 a month or about 12 months revenue and the loan costed him $500 a month he'd need to grow the revenue of the site to $500 to break even. Not terribly hard if it already has traffic and he has a plan.

    He got any experience owning websites?
    {{ DiscussionBoard.errors[10924386].message }}
  • Profile picture of the author Kay King
    If he can grow the site faster than the cost of the loan and pay back the loan with the site profits it could be worth it.
    and if he can't he still owes $4k

    Then the next thread will be "my friend borrowed $4k to buy a site and the site isn't making money - what can he do?"...

    If he had experience he'd know whether to do it or not....
    Signature
    Saving one dog will not change the world -
    but the world will be forever changed for that one dog.
    {{ DiscussionBoard.errors[10924662].message }}
  • Profile picture of the author luciesmazanska
    Beware of scammers on Flippa! Sometimes there are websites that are supposed to make money with Adsense,
    when in fact the traffic is artificial, and Google deletes your Adsense account and bans you from activating a new one!
    Flippa defends themselves that they have nothing to do with this, because you have to confirm by yourself the legitimacy of the claims in the ad.
    Be extremely careful before buying website from flippa.
    Signature
    ★★★★★
    {{ DiscussionBoard.errors[10924974].message }}
  • Profile picture of the author Shana Walters
    Speaking from my own personal experience I say it is a horrible idea.

    Gorgeous Lucky Bitch,
    Shana Jahsinta Walters.
    Signature
    Write until my fingers fall off. LOL!!!
    {{ DiscussionBoard.errors[10930309].message }}
  • Profile picture of the author Shawn Arms
    It is so funny how many folks are saying be careful of Flippa and then there are tons of WSOs saying "sell stuff on flippa" Wow!

    How about I give you guys a better idea?

    Are you or your friend goofy looking or attractive? Do you know any good looking girls?
    Where do you live?

    The reason I ask is you could start a video creation business. That is the easiest for me. Go to Fiverr and find animators, spokespersons, video editors, etc.

    Here is the example.
    https://yourvideospokesperson.com/

    You can put some videos together using Fiverr folks and create a website with those videos.
    Then you can hire a salesforce who works on commissions only.
    Charge 700-1000 for a video that is 1 1/2 minutes. Pay 100-200 in commission, then get it done for 200-500 and pocket the rest. You could make 200-500 per video if not more.

    Now if you don't want to go that route by yourself and really want someone to make a site for you go here.
    White Label Reseller Solution - 100% Custom Whiteboard Videos, Animation & Video Scribing
    They give you a 20% discount. You upsale it 20% more. You profit margin is 40% and you give the 20% to the sales rep and pocket the other 20%.
    They can setup a website for you for $1000 dollars. Or you can even use other video people online and just do sales force type people and walla. Get 10-20 sales folks and sale 100 videos a month making 200-500 off each video. You do the math.

    We do about 125 videos a month personally. And there are millions of businesses in the US so it will not get oversaturated. Then go around the world and bam.

    Grow by adding more services such as turning websites to mobile sites, videos, seo, public relations, etc. and you can find them all on Fiverr or other sites.

    Then you can take another 1,000 and invest in my side project which will make 100,000s of dollars if not millions. But I digress on that.

    Look guys I just gave away the farm if you want to make money online.

    Find a sales force and then outsource the business. Boom. No hoping people buy your affiliate products. Get hungry sales reps working on commission and find an great outsource venue like Fiverr.com

    Now you can pay me for that information if you like or you can buy my other WSOs. LOL.
    {{ DiscussionBoard.errors[10930362].message }}
    • Profile picture of the author Regional Warrior
      Originally Posted by Shawn Arms View Post

      It is so funny how many folks are saying be careful of Flippa and then there are tons of WSOs saying "sell stuff on flippa" Wow!

      How about I give you guys a better idea?

      Are you or your friend goofy looking or attractive? Do you know any good looking girls?
      Where do you live?

      The reason I ask is you could start a video creation business. That is the easiest for me. Go to Fiverr and find animators, spokespersons, video editors, etc.

      Here is the example.
      https://yourvideospokesperson.com/

      You can put some videos together using Fiverr folks and create a website with those videos.
      Then you can hire a salesforce who works on commissions only.
      Charge 700-1000 for a video that is 1 1/2 minutes. Pay 100-200 in commission, then get it done for 200-500 and pocket the rest. You could make 200-500 per video if not more.

      Now if you don't want to go that route by yourself and really want someone to make a site for you go here.
      White Label Reseller Solution - 100% Custom Whiteboard Videos, Animation & Video Scribing
      They give you a 20% discount. You upsale it 20% more. You profit margin is 40% and you give the 20% to the sales rep and pocket the other 20%.
      They can setup a website for you for $1000 dollars. Or you can even use other video people online and just do sales force type people and walla. Get 10-20 sales folks and sale 100 videos a month making 200-500 off each video. You do the math.

      We do about 125 videos a month personally. And there are millions of businesses in the US so it will not get oversaturated. Then go around the world and bam.

      Grow by adding more services such as turning websites to mobile sites, videos, seo, public relations, etc. and you can find them all on Fiverr or other sites.

      Then you can take another 1,000 and invest in my side project which will make 100,000s of dollars if not millions. But I digress on that.

      Look guys I just gave away the farm if you want to make money online.

      Find a sales force and then outsource the business. Boom. No hoping people buy your affiliate products. Get hungry sales reps working on commission and find an great outsource venue like Fiverr.com

      Now you can pay me for that information if you like or you can buy my other WSOs. LOL.
      Shaun

      You have been pushing this idea re the video scribe in various threads !! not all can do video scribing and this is for his friend not him the OP is against it maybe read the whole thread before posting next time
      {{ DiscussionBoard.errors[10930404].message }}
  • Profile picture of the author JohnVianny
    WASTE OF TIME AND MONEY


    You better build an opt in page and spend the money in ads for building a huge list!

    And then a site where you talk about the topic you choose, even if it's new site.

    With 4K you can buy fb ads and solo ads and start build a respectable list which lasts more than a filippa site.
    {{ DiscussionBoard.errors[10930410].message }}
  • Profile picture of the author yukon
    Banned
    If he's this naive at managing money odds are he'll get screwed on Flippa whether he buys with or without a loan.
    Signature
    Hi
    {{ DiscussionBoard.errors[10930425].message }}
  • Profile picture of the author Julio
    Your friend could borrow the money to buy one good domain name instead then flip it for a profit.
    Signature
    DominioNombres.com Marketplace!
    {{ DiscussionBoard.errors[10930451].message }}
    • Profile picture of the author yukon
      Banned
      Originally Posted by Julio View Post

      Your friend could borrow the money to buy one good domain name instead then flip it for a profit.

      A casino would be more entertaining.
      Signature
      Hi
      {{ DiscussionBoard.errors[10930460].message }}
  • Profile picture of the author Julio
    With 4K anyone can get 2 or maybe 3 LLL.net and do a nice flip.
    Signature
    DominioNombres.com Marketplace!
    {{ DiscussionBoard.errors[10930477].message }}
  • Profile picture of the author Shawn Arms
    You have been pushing this idea re the video scribe in various threads !! not all can do video scribing and this is for his friend not him the OP is against it maybe read the whole thread before posting next time
    I mean anyone can do it. It doesn't have to be video. It is just plain service brokering. It is one of the easiest and fastest ways to make money. Since video can be done for cheap but charged at a higher price this seems like a viable option.

    Just trying to help the man to easiest way to make funds and use that 4k the best way.

    Just trying to help folks leave their 9 to 5 slavery.
    {{ DiscussionBoard.errors[10930486].message }}
  • I am not sure if that is a good idea, especially if your friend has never owned a website before and it is their first-time exploring internet marketing - $4,000 sounds a lot to get your feet wet unless it is a really good established site.

    If it isn't an established site already making money, then your friend may find making the money back to pay for the loan when he has now idea how to run or market an online business may prove to be difficult if he doesn't at least know the basics to build it up.

    Hopefully, this site has a proven customers base that he can work and build on otherwise your friend might find this a struggle.

    Also when it comes to buying a new website that you believe is going to generate a lot of income because of the supposed incoming traffic presented by the seller, then you really need to do you due diligence on that as some sellers build a site and send a lot paid traffic or bots to it to make the site look attractive however once you buy it the traffic stops and you are stuck with a dead site.


    Also ask if they are currently promoting the site anywhere else. Any site that is getting traffic but is not being advertised /promoted elsewhere using paid traffic or web 2.0's, blogs or anywhere else then any real substantial traffic would definitely have to be organic through search engines.

    At that point it would also be best to check with the seller if the site is currently ranking on any of the major search engines (Google, Yahoo, Bing), if yes, then ask for what key words so you can search for them yourself to see if the site shows up and what position it ranks.


    Make sure to really do your due diligence when it comes to what keywords the site is currently ranking with as that could be a great way to monetize the site through relevant affiliates.
    {{ DiscussionBoard.errors[10930676].message }}

Trending Topics