Are you ready to become a Virtual Real Estate Owner? Have you already read the preceding articles in this series “Virtual Real Estate – Better to Buy or Build “ and “Cash in the Virtual Attic”? By graduating from Home Page Buyer’s Boot Camp you will guarantee yourself a much better chance of success.
Ignore this list at your own risk. Imagine you’re climbing a staircase and each step has a job for you to accomplish before you traverse the next and finally make it to the top marked “You have successfully purchased a Web site.” Remember, you are spending your own money on this venture so be sure to perform due diligence to minimize your risk. What sort of due diligence research? Read on to find out.
Step 1: Check out the seller. Have they sold sites in the past? What can you find out about him/her on Google, LinkedIn, Facebook etc? If they have sold a site before, what is their feedback score. Do they appear to be willing to go the extra mile? Do you feel they will be helpful in the transaction process?
Step 2: The Domain Name. What is the validity of the domain? Does it have page ranking? Who is the site listed to? Will you receive all rights to the name along with the site?
Step 3: Site Content – As has been said in numerous other videos and articles, be sure to check out your competition! How does their content compare to yours. Make sure your content passes Copyscape and other plagiarism tests that are currently available, many free of charge, on the web.
Step 4: Is the seller claiming any traffic to the site? Is it real, unique visitor, traffic or merely hits to artificially boost Alexa ranking? Are there certain days or times when you get more or less traffic? Where is the traffic coming from? If there is traffic, what is the conversion rate? Do you already have a plan for improving this?
Step 5: How much revenue is actually being generated? Is the seller willing to provide valid evidence to back up their revenue claims? When you see the books, make sure you see how much is going out vs. how much is coming in. How can you increase revenue and minimize risk? How hard will it be to redirect the cashflow?
Step 6: SEO – What are the incoming links doing for you? What are your current and potential rankings? Are there any backlinks? What is your SERP competition and what can you do to optimize your pages?
Step 7: What is the price of the site? Is it a good value? Always negotiate whenever possible and be prepared by learning everything you can about the seller. Know what you want out of the deal, what you’re willing to accept, and what concessions you’re willing to make. Most of all, remain open to alternative solutions and work together toward mutual benefits.
Step 8: What is your plan? You need to have a solid business plan in place before you ever acquire your first Web site. Think these questions through. Where do I see this site a week from now? 3 months from now? 6 months from now? Are you planning on flipping this site or do you want to keep it as a long term asset? Your answers to these questions will help guide you toward buying the right Virtual Real Estate and show you how best to market your Web sites to maximize revenue.
Step 9: How do you think the transaction should go? It is always wise to consult an attorney. The few hundred bucks you pay will be paltry compared to what it will cost you if this Web site flops due to transaction or contract issues. Make sure everything is written down and that your attorney approves all documents. This cannot be stressed enough.
Step 10: The transaction brings us to the final step which is the contract. Is this contract fair to both sides? Again it is a very good idea to hire an attorney. If you or the sellers write the contract it will be slanted towards either you or the seller. Later on this could lead one party or the other to claim some sort of damages. Leave the legal work to the experts and focus on what you do best – buying, developing, and selling Virtual Real Estate.
Be mindful, this is merely a quick overview of the ten steps to passing the Virtual Real Estate Buyer’s Boot Camp. The next ten articles will each include a checklist, one for each of the preceding steps, in greater detail. Remember, the key to long term wealth is through financial intelligence and any degree of success begins with a solid foundation.