EFP 123: Buyer Postmortem of a $40K Purchase

Justin Cooke

January 15, 2015

What do buyers do with our sites after purchase?

This is a question that comes up a lot and the answers tend to be across the board. Some buyers put time into expanding the site via content, paid traffic, etc. Others ride the sites out as a completely passive project.

We thought it would be interesting to ask previous buyers to come on the show and explain their tactics, strategies, successes, and failures after purchase.

What Do Our Buyers Actually Do with Their Purchased Websites?

Our first guest is Jay who purchased the niche product site RaveAid.com for just over $40K nine months ago. In this episode, we’ll cover his due diligence process, reason for purchasing, his expansion strategy, and dig into the numbers to look at where he’s taken the site (and where he’s going).

If you’re a website buyer or seller, this episode is a must-listen.

Check Out This Week’s Episode Here:

Direct Download – Right Click, Save As

Topics Discussed This Week:

  • What led to purchasing this site over others
  • The buyer’s due diligence process
  • How to negotiate a deal
  • Taking over the site and hitting the ground running
  • Strategy for growth
  • What a buyer should know going in

Mentions:

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“At some point, an entrepreneur has to take that leap of faith.” – Jay – Tweet This!

“Be careful assuming your customers won’t like a product or service.” – Justin – Tweet This!

Have you ever bought a site? What did you like or not like about the process? What advice do you have for other buyers or sellers? We’d love to hear your thoughts below!


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Discussion
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  1. brady says:

    Curious what happened to listing 40135?

  2. Chris says:

    What I’d like to see is the sold websites on your side to be sorted by the date sold for no other reason than it would be interesting to see.

    • Justin Cooke says:

      Hey Chris,

      We had to be pretty careful with the data showing on the homepage. Adding much else would leave it looking pretty cluttered, I think.

      Additionally, I’m not sure how the date sold would in any way help buyers. What’s the value add there?

      • Chris says:

        Nothing to do with the home page…. Why sort it? Was the site sold or was it pulled from your site? hard to tell. You post every month how much in total you sold but not how many sites (unless I missed that). That’s not really value add either but it’s interesting data. But here’s a scenario that you might not have thought of. If I’m a buyer and I have 5k I come to your site I wouldn’t know that you sometimes have cheaper sites. unless i dig. Another reason would be if a buyer wanted to figure out the average amount of investment people have made in the past three months in order to figure out how much average investment they need Or a seller contemplating selling with you. A seller considering selling a web on your site might want to know how long it takes For similar niche sites. I’m sure you have this information it is your business and the average sale price and length to sale is your bottom line. I’d also like to know how long it’s been for sale kinda like buying a house Why are people not buying?

        Maybe too much information is not good too. Totally up to u guys in the end.

        I’ve only bought a few sites from you guys for fun but sent a few good sales as well. People ask me all the time how to make money online. You guys have simplified my answer I just tell them to look u up. So keep up the good work.

        BTW I had no idea you replied..comment subscription?

        • Justin Cooke says:

          Chris,

          Sorry – I meant the main page of the marketplace, not homepage. (Where you can sort in listing view)

          We’ve had a few sites pulled from the marketplace over the last year because we couldn’t sell them, but very, very few. Most do end up selling.

          We have a write-up for sellers to give them an approximate idea on time-to-sell. It covers the different price ranges too:

          http://empireflippers.com/how-to-sell-my-website/

          This is prominently shown to sellers down several different funnels and helps, I think. We’re pretty careful about expectations, though. We don’t want someone to assume that their $10K site will sell within a week and then, 12 days down the road, have them asking, “WTF”? An average doesn’t show outliers, of course.

          To be frank, our focus is on buyers in the $50K+ range, which is why we have them auto-sorted highest to lowest. We don’t promote the Sub-$10K sites much, because they sell without much promotion or intervention on our part, so we need to promote to the higher end of the market.

          Your comment about how long a site has been for sale makes sense. That information is important. I think it was in our original design, but it became really confusing with some thinking it was the date the site was created and not the date we listed it so it got removed at some point.

          I hear you on comment subscriptions. We used to have with Disqus, but when we dropped it in the new redesign we didn’t add that piece back to WP comments, heh.

  3. Fazl says:

    Hi guys,

    Great podcast – it was really informative and insightful getting first hand feedback from someone who’s purchased a website through you guys and has thrived since. I am currently looking for a website to purchase and would love to hear more podcasts like this one.

    Keep up the great work!!

  4. Patrick says:

    Fantastic episode! Hearing the buyer’s side was interesting throughout and very relevant to prospective first time buyers. Thanks Jay for coming on the show to discuss.

    I also look forward to hearing more about the investor program.

    • Justin Cooke says:

      Thanks, Patrick! Yeah – big thanks to J for coming on the show.

      I’m looking forward to continuing this series. I have another buyer willing to come on as well, just need to setup the time for the call.

      Will have more info about investor program in coming weeks. It was on the back burner, but quickly jumping to the top of the list in 2015.

  5. Scott says:

    You mentioned an apprenticeship and I can’t seem to find anything else about it. Are you guys offering one?

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