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Thread: New book on Buying Profitable Websites

  1. #11
    aka "meathead1234" Thomas is a Premium Member
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    I think it's pretty unfair to judge a book before you've read it based on your opinion on the industry as a whole. I buy/read books all of the time - don't necessarily have to agree with the author to learn or get something out of it. I don't like stocks/shares and think the industry is largely guesswork, but that doesn't mean I wouldn't buy a book from a successful stockbroker to learn. I don't think any mildly intelligent person would buy a book and expect it to be the holy grail for any subject.

    Successful people read a range of books by a variety of people on a subject to improve their overall knowledge. Can sit around all day long saying that the industry isn't like the good old days, but there are still people a living/building companies (and making more each year) in the industry so it can't all be doom and gloom
    Last edited by Thomas; 10 October 2014 at 4:57 am.

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  3. #12
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    Quote Originally Posted by nokkieny View Post
    I would be interested on a review of the book as I do enjoy the topic so if there is some quality information I might consider reading.
    Hi,

    There are no review copies of this book, but you can download a sample chapter from the landing page (link in original post at the top of this thread), and there are plenty of testimonials from successful people with years of experience in this industry. All the best.

  4. #13
    Administrator Clinton is a Premium Member
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    Quote Originally Posted by nokkieny View Post
    In fact this forum is probably the only good example I can come up with, but I also feel like there is a focus on why everything is bad. Maybe that is just how things are, but I wonder if there are some good sites to be had and some honest transactions, or is it just a minefield?
    There are definitely some good sites to be had, but the time spent finding them is more than most of those sites are worth. Time is money to me. I used to track how much time I spent per $10K in acquisition (and have written about it somewhere some years ago) - time spent rummaging in the cesspit, finding a prospect site, speaking with the owner, doing some basic DD, getting the stats and info from the seller, doing further research into that data etc. That time element kept growing and growing and growing partly because of the huge amount of junk and partly because it's far easier today to scam a buyer than it used to be. The buyer needs to have a thousand eyes, the seller but one.

    Relative newcomers to this business, like many of the players making money from either sellers or prospective buyers, won't be aware of just how tricky and time consuming it has now become relative to how it used to be. The game ain't worth the candle any more. I even took for a trial run some of the services that cropped up that purportedly shaved some time off of the hunt for an acquisition... and even created one or two automated techniques of my own. I've come to the conclusion that unless you've got at least a six figure sum today and are looking at broker listed, long established businesses, you're better off out than in. Nothing to do with "good old days". Simply that someone who doesn't know what he's doing is likely to get burnt. Someone who does know what he's doing would value his time and spend it more profitably than by hunting for websites to buy. You're unlikely to find this view in a book written by someone who needs to drive people into the industry.

    Quote Originally Posted by nokkieny View Post
    As far as these ebooks put out by those with conflicting interests, I have read a few on amazon and they were very light on content and vague. ...I would be interested on a review of the book as I do enjoy the topic so if there is some quality information I might consider reading.
    Without reading Justin's book I can tell you it won't be light on content and that it'll have more than a bit of quality information. The astute reader should be able to read between the lines and recognise the drum beating (for the industry) from the real meat. I would recommend you take his money back offer and demand a full refund if you're not satisfied. It's worth the gamble and I've no doubt he'll honour his promise of a refund if you are unhappy with the product.
    Find the right business brokers to maximise the value you extract from your business and improve the chances of selling your business.

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  6. #14
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    Quote Originally Posted by Clinton View Post
    There are definitely some good sites to be had, but the time spending finding them is more than most of those sites are worth. Time is money to me. I used to track how much time I spent per $10K in acquisition (and have written about it somewhere some years ago) - time spent rummaging in the cesspit, finding a prospect site, speaking with the owner, doing some basic DD, getting the stats and info from the seller, doing further research into that data etc. That time element kept growing and growing and growing partly because of the huge amount of junk and partly because it's far easier today to scam a buyer than it used to be. The buyer needs to have a thousand eyes, the seller but one.

    Relative newcomers to this business, like many of the players making money from either sellers or prospective buyers, won't be aware of just how tricky and time consuming it has now become relative to how it used to be. The game ain't worth the candle any more. I even took for a trial run some of the services that cropped up that purportedly shaved some time off of the hunt for an acquisition... and even created one or two automated techniques of my own. I've come to the conclusion that unless you've got at least a six figure sum today and are looking at broker listed, long established businesses, you're better off out than in. Nothing to do with "good old days". Simply that someone who doesn't know what he's doing is likely to get burnt. Someone who does know what he's doing would value his time and spend it more profitably than by hunting for websites to buy. You're unlikely to find this view in a book written by someone who needs to drive people into the industry.
    How would you say the market is for brokered sites and $50k+ flippa listings today versus in the past? I completely agree with what you are saying and it sorta defines my frustration with the market and business of buying and selling as a whole. I would relate buying a site under $10k to buying a penny stock. But, unfortunately most of the market is for these types of sites and so is most of the information. However, I feel like when you get to a higher price point the risks drop significantly, of course you are going to due the typical due diligence as part of the process, but from my point of view the most important due diligence is determining the viability of the business long term. Is it the type of site that fits into my long plan? Is it likely that this site with years of steady profits will continue to have steady profits? Basically a market risks analysis. This is what I am really trying to learn and I understand trial and error will be part of that.
    Part of what I did initially is went back through all the high value sold flippa listings and checked to see if those sites were still active and I would say 9/10 were at least still online, of course there is no way to tell how they are doing financially, but I believe for the most part these sites are not scams. So my overall strategy or expectations are that I should statistically be able to at the very least break even, and this would be considered the worst case scenario. I will learn a lot in the process and hopefully someday save up enough to buy a 7 figure site that I can manage from a tropical destination with beer in hand . Or maybe I will figure out that spreading the risk between multiple sites is a better plan, who knows..
    Regarding time spent and investment, I have started 4 businesses from scratch. I will say there are some advantages to doing this, however, it's a lot of work, it's normally expensive and the risks are there. So from my point of view, if I can buy an existing established business for 3x earnings or less, sign me up. It's also something I enjoy, I am tired of being in business purely for money and am trying to start doing things that actually hold my attention. Which is a nice part of websites because if you get bored with one you can just sell it.

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  8. #15
    Administrator Clinton is a Premium Member
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    Brokers? That's a completely different matter. For the first several years there were no brokers at all. Then people realised you need no qualifications to be a broker - the background knowledge from reading a site flipping book is enough to convince people you know what you're talking about. So all kinds of people started setting up as brokers. Several have developed their knowledge as they went along and now know a lot about the market. Not all have developed their ethics as well.

    The result is that now you have brokers who know what they're talking about and some who don't, brokers who price sites at ridiculous figures and keep them listed for years, brokers who "copy" listings from elsewhere to give the appearance they're busier than the solitary one listing they've had all year, brokers who encourage scam listings because they know it's not the broker's job to do DD, brokers who have played escrow and done a runner with the money ... all sorts. But there are "good" brokers too. Don't go by the broker, go by the quality of the listing you've found on their site and always remember the broker isn't on your side, he's on the seller's side.

    Listings at brokers are generally of a much higher quality than listings at Flippa partly because it's not economical for them to take on $5000 listings and partly because owners of proper businesses prefer to list at brokers than at a pull-your-pants-down-and-show-everything-to-every-idiot-marketplace. That's why it's still not worth going to Flippa for $50K+ listings. Brokers do some vetting before taking a listing on. Flippa takes a $50K listing on with the same abandon as a $50 listing. Flippa have no time or effort invested in looking at the property first before taking it on so no idea even if it's a blatant, in-yer-face fraud.

    I doubt this book would advise you to avoid the scam central Flippa (I refer you to my conflict of interest post) and to exclusively use brokers, but I would. Use brokers as you've got a "decent budget". For those who don't have a decent budget stay out of the market as most of the trickery is at the bottom end. I won't give a fixed figure but the lower you go in price the more chance you'll get conned till you get to the very bottom where the deal is clear in that you're buying a template and that's it (though even there you can realise later that the template isn't as "original" as claimed, that there's some hidden dodgy code to overwrite your Adsense publisher ID and steal your money etc etc).
    Find the right business brokers to maximise the value you extract from your business and improve the chances of selling your business.

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