What is the best type of established site to buy for a newbie to safely make money?

[KenW3]

@benitez17, Thank you for your reply. Website brokers able to address these concerns, and able to take responsibility for the accuracy of business data provided, would achieve greater success. The ones that would/could protect buyers, rather than simply represent the sellers, would have a guaranteed source of repeat, exponentially increasing, business.

Business brokers here in the US function much the same way as Realtors. A real estate agent represents sellers, who agree to pay a percentage of the sales price to the sales agent. Buyers do not have similar representation. I brought in my own Realtor for the last house I bought, as the commission is then split equally between agents. I wanted her to represent me and not the seller. That didn't happen.

The third question, perceived as a repeat of 1 and 2 is an attempt to find financing options that directly address this concern. I suppose a contract can be written that discontinues all future payments on a loan, if due diligence did not uncover all liabilities or revenue was incorrect, but that may only work with seller financing unless there are investors specialising in web business finance. (This is an opportunity in itself.)

There are many different ways to fabricate proof of sales and income for web sites, and falsify site metrics. Even the best at DD may be fooled. It would seem that being able to safely buy a guaranteed revenue stream would result in a much higher multiple paid. Profitability for a broker, along with reputation, could result in market domination, especially if the ability to take responsibility for new paranoid buyers with capital was adequately addressed.

[Clinton]

Ken, I don't know any business brokers who perform the type of service you suggest i.e. acting for the buyer in not just finding/acquiring a site, but also in assessing the business proposition and analysing the risk.

There may be an opportunity here for brokers, but there's a big snag.

As you say, brokers are very similar to realtors, and the broker's job is to represent the seller just as with realtors. But there's one major difference between buying a property and buying a business. When you buy a property in the UK your solicitor checks the deeds, makes a limited number of other legal checks and deals with the contract. Checking a business over isn't that simple.

Brokers have a skill set - finding buyers and selling businesses. Buying businesses, on the other hand, and doing all the associated due diligence involves skills that brokers simply do not possess. It's a very personal thing. You're looking for a business that gels with your skills and abilities and which you can add value to. A broker isn't the best person to provide that service unless he's very experienced in buying and running businesses and he's taken the time to develop a keen understanding of your needs.

[benitez17]

@benitez17, Thank you for your reply. Website brokers able to address these concerns, and able to take responsibility for the accuracy of business data provided, would achieve greater success. The ones that would/could protect buyers, rather than simply represent the sellers, would have a guaranteed source of repeat, exponentially increasing, business.

Business brokers here in the US function much the same way as Realtors. A real estate agent represents sellers, who agree to pay a percentage of the sales price to the sales agent. Buyers do not have similar representation. I brought in my own Realtor for the last house I bought, as the commission is then split equally between agents. I wanted her to represent me and not the seller. That didn't happen.

The third question, perceived as a repeat of 1 and 2 is an attempt to find financing options that directly address this concern. I suppose a contract can be written that discontinues all future payments on a loan, if due diligence did not uncover all liabilities or revenue was incorrect, but that may only work with seller financing unless there are investors specialising in web business finance. (This is an opportunity in itself.)

There are many different ways to fabricate proof of sales and income for web sites, and falsify site metrics. Even the best at DD may be fooled. It would seem that being able to safely buy a guaranteed revenue stream would result in a much higher multiple paid. Profitability for a broker, along with reputation, could result in market domination, especially if the ability to take responsibility for new paranoid buyers with capital was adequately addressed.

Why would they take legal responsibility for someone else's information? The contracts I have seen basically state that everything is correct to the best of their knowledge, but they are just passing along what was provided. They collect as much information as they can to prove the seller's statements, but they aren't infallible.

The comparison to a Realtor is a good one. If a homeowner didn't disclose some important information the Realtor, the Realtor isn't on the hook if the buyer finds out. The Realtor also represents the seller, since they are the ones ultimately paying the Realtor, unless you sign a buyer's agent contract.

Regarding question #3, I can't imagine anyone that would sign a contract where they could be penalized for omitting or making a mistake on basically irrelevant information. I wouldn't.

[Linus]

That is very encouraging to hear, but being a newcomer, it all does still seem daunting. I don't really knwo where to start at this point. I know I want to make money online and inparticular with websites, but I have limited skills and limited finances. What do you recommend I focus on?

Thanks.

[grynge]

I would suggest Linus you focus on something you actually enjoy, a hobby, an activity, or something you like doing. This way your first endeavour is more something you will enjoy rather than being a pain when the money only dribbles in. These days getting a website up and running can cost as little as $10 USD, using a open source cms, a free theme and maybe even free hosting if not hosting can cost as little as $5 per month for something decent in the US. Most hosting these days will also install one of the major cms's for you for free so all you would need to do is upload your theme and start writing.

You could also look at flippa/dp for a cheap up and running site (I would say pay as little as possible $20 or less) and ask that they transfer the site to your own hosting. Even if things go awry you only out a few bucks. once you get the hang of running a small website you can always start looking for something a bit bigger.

You can also ask here for any help on whatever stage you are upto. There is normally always a member willing to give you some reliable decent advice.

[benitez17]

I would suggest Linus you focus on something you actually enjoy, a hobby, an activity, or something you like doing. This way your first endeavour is more something you will enjoy rather than being a pain when the money only dribbles in. These days getting a website up and running can cost as little as $10 USD, using a open source cms, a free theme and maybe even free hosting if not hosting can cost as little as $5 per month for something decent in the US. Most hosting these days will also install one of the major cms's for you for free so all you would need to do is upload your theme and start writing.

You could also look at flippa/dp for a cheap up and running site (I would say pay as little as possible $20 or less) and ask that they transfer the site to your own hosting. Even if things go awry you only out a few bucks. once you get the hang of running a small website you can always start looking for something a bit bigger.

You can also ask here for any help on whatever stage you are upto. There is normally always a member willing to give you some reliable decent advice.

I always recommend a combination of these two suggestions as a good starting point: Find a cheap existing site in a niche that you like, and then ask the seller a lot of questions.