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Thread: Do you consider an NDA a bad thing when looking at a for sale listing?

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    Do you consider an NDA a bad thing when looking at a for sale listing?

    I am getting slightly annoyed at listings that require an NDA but yet provide NO information. Perhaps just a few pieces of data about income to get you excited. I don't want to say they are all a scam, but I have certainly seen quite a few that are so flawed it takes about 1/2 a second for me to be turned off by the site as soon as they tell me.

    I don't have a problem when the key points of the site are disclosed (such as Quiet Light Brokerage - plus you only need a single NDA for all of their listings) but if the seller is so worried about even telling you the niche... it sends off serious red flags.

    I remember a seller saying he didn't want to tell me anything about the website because then I could copy it. Gee, doesn't that mean ANYONE could copy you at any given date and time. I also remember a site that was described as DVD Ecommerce site and then it turns out they are selling pirate content (foreign films) on DVD.


    I think these sellers are looking for the mythical "stupid/rich buyer". He has lots of money, doesn't ask a lot of questions, takes you at your word, doesn't verify any information and sees nothing but potential.

    What say you?

  2. The Following 2 Users Say Thank You to TrustButVerify For This Useful Post:

    Chabrenas (20 October 2012), Clinton (19 October 2012)

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    Administrator Clinton is a Premium Member
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    Quote Originally Posted by TrustButVerify View Post
    I have certainly seen quite a few that are so flawed it takes about 1/2 a second for me to be turned off by the site as soon as they tell me.
    As I have been saying for a while, I think the "Confidential Listing" section of Flippa - where you have to sign an NDA to see the URL - has become the home to pharma, illegal, trademark violating and other undesirable sites. Scammers gravitate towards it because it's easier to scam in here than outside. Unfortunately, despite the far higher costs for listing in CL, there is no vetting by Flippa and CL is full of the worst kind of rubbish. That you have to sign an NDA first to see rubbish is annoying.
    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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    In my opinion NDA's are really only relevant for higher end sales where disclosing information of the sale to any other non-purchasing party would cause harm to the business in one way or another. In the end most NDA's as Clinton outlined are not used properly (ie. Flippa) - your not going to have much recourse if your selling a $20k site, and the guy that leaks your information is across the world.

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    I think a lot of people just ask for NDAs without thinking it through. They think its just something you need to do. It is also not limited to people selling websites; people in regular businesses do the same thing.

    A typical NDA only protects information that is truly confidential. Most of them specifically exclude (as they should) information that was already in the public domain. What is more public than a website? The idea that getting an NDA somehow prevents someone from copying your ideas as displayed on your website is simply wrong.

    NDAs certainly have a legitimate use, but I find that they are grossly over-used. I try to make sure that any client that is seeking or signing an NDA gives some thought to what is really to be accomplished by doing so.

  6. The Following 2 Users Say Thank You to David S For This Useful Post:

    Bryan (23 October 2012), TrustButVerify (19 October 2012)

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    I currently have an auction up with an NDA. It's probably me you're talking about since you PM'd me earlier. I actually try to screen buyers for my auction to eliminate some the low-lives of the internet who are just looking for ideas to rip.

    As for my project, It's a totally legit deal and there's no violations. I've operated the site for 3 months and the only reason I"m selling is because I do not care to deal with the things needed to grow the business. Read my prior replies today to see where my interests lie.

    1) I believe NDA auctions help you sort through A LOT OF TRASH. Most of the entities dealing bogus sites on Flippa are automatically cut down by about 90%. They will not want to spend $120 on the possibility of a sell for something that's likely to be called out by 90% of those who are looking at NDA auctions.

    2) Anyone spending $120 on an NDA auction is likely making money. The project has to be worth something to carelessly put $120 into the extra confidentiality feature.

    3) Another good thing, Site and it's revenue stats does not show up in search when you enter "domain name" or "domain name for sale" in google. This is beneficial for any large buyer in my opinion. And also a good way to eliminate 'e$ Trails' ..... paper trails are a thing of the past... watch your e$ Trail today.

    Just a few reasons I like NDA.

    Addressed to Clinton:
    It seems you are always pointing out the "things that could go wrong" vs the positive of things a lot of times. And I agree just as anything else, people can violate good business practice. However, I believe NDA auctions are A LOT LESS HAZARDOUS than buying a regular site listing on Flippa and most forums, when talking in percentages. Would you not agree?


    To avoid scammers

    1) Obviously look at their history on Flippa. I've sold ~$5000 in sites I believe, in shown revenue there. However, 2 of those buyers ended up asking me what else I had and the deals became worth 5x more than what the Flippa listing shows . Regardless, of all the deals I've done, no one has reported negative.

    2) Know the history of your seller. Get a REAL NAME and Google it. I wouldn't spend more than 'hundreds' with someone who's name I can't google. I'm not a big buyer but just something I would look for.

    3) Even with that said........... It's all about what you want as a buyer at the end of the day. Everything can be bad if you look for reasons. That's how the Yin & Yang work.. especially with the internet.


    In referring to me, which I feel this post is implying:
    I've sold to people on Flippa, Digital Point, and also Alpha Brand Media. ABM, a company worth probably half a billion in web properties, proudly lists my site as their highest traffic site in their urban/pop culture catalog. Not only that, they liked what I sold them so much they used me as a guide into the pop/urban niche , where I brokered additional deals with other webmasters I know. Through the owners of ABM media, I've done 6 figures in transactions alone.

    And you can gogle my name to prove that. . . Feel free to ask

    I really a little disappointed you would try to take a shot like this in the forum. I do not understand why me not agreeing to give over a domain name, which is in a LOW (1 other business) COMPETITION niche, sets off such smug responses at times. Someone else was angered by me not just carelessly handing over the domain name.......... sounds fishy to me when an 'interested client' acts like this.

    I'm being forward and honest. That's how I do business.

    I'm not really into the sneering and cat-chat.
    Last edited by cBusiness; 20 October 2012 at 2:30 am.

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    Nobody has mentioned you or your NDA site. You've made your own associations. And completely unnecessarily I might add. You could have approached the OP privately if you believed his post was specifically about you and were unhappy about it.

    Quote Originally Posted by cBusiness View Post
    Addressed to Clinton:
    It seems you are always pointing out the "things that could go wrong" vs the positive of things a lot of times. And I agree just as anything else, people can violate good business practice. However, I believe NDA auctions are A LOT LESS HAZARDOUS than buying a regular site listing on Flippa and most forums, when talking in percentages. Would you not agree?
    If you've read any posts of mine on the topic you'll know I don't agree. You've got one site listed in Confidential Listings; I've filled in tons of NDAs. Who is likely to have a better idea of what type of sites one gets in CL?

    Look, when the police raid the brothel and you're in there, you're seen as one of the regulars. You might be innocent - perhaps you're there to clean the toilets or read the electricity meter - but that's a story for later.
    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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    If I'm wrong, I have not said anything to misrepresent myself. I'm just candid about things I can perceive as disrespectful and try to head off things, by presenting facts.

    Lol @ The brothel quote. I just wanted to share my opinion on the NDA and also see if your angle at many posts is to give the fatal flaws of different things vs the up-side.

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    Quote Originally Posted by cBusiness View Post
    I currently have an auction up with an NDA. It's probably me you're talking about since you PM'd me earlier.
    ...

    I really a little disappointed you would try to take a shot like this in the forum.

    ...

    I'm not really into the sneering and cat-chat.
    cBusiness: I'm NOT referring to you.

    In my original post I said:

    Quote Originally Posted by Me
    I am getting slightly annoyed at listings that require an NDA but yet provide NO information.

    ...

    but if the seller is so worried about even telling you the niche...
    I actually have no problem with your listing. It clearly states your niche as the eCigs business and you lay out your information clearly enough where anyone can decide if they might be interested.

    If you look at some of my past threads you'll see I'm communicating with many sellers. I apologize if you took this as a personal attack, it was not meant to be.

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    There are loads of good points made in this thread, eg sellers sometimes ask for an NDA because they're afraid of having their site copied. In general NDAs are not used properly and they're over-used.

    But the reason why I've dug up this thread today is because of the suggestion that Flippa's "Confidential Listings" are full of scammers. Has anyone got anything to add to that point? What's your recent experience been of sites for sale in that section?
    British Expat - helping people to live and work abroad since the year 2000.

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