Buying someone else's established website?

[all4jah]

Hi everyone. I need some advice. I just received word that a website in my genre is up for sale. I don't know the price yet, I just emailed the current owner for more information. I already have a website but this other one would add some much needed niche content, plus allow me to do some co-branding, build awareness for my main site, and give me more potential revenue via advertising, AdSense, etc.

I am completely new to this "buying an established website" thing. Can any of you point me in the right direction on how I can learn. For example, let's say I do decide to buy it out. How do you pay them? Do you pay half and then they transfer it over to you and you pay the other half? Etc etc etc. What protections can you set up for yourself? The owner is halfway around the world so there is no way we could meet in person.

Here is what information was sent to me, I wrote back requesting more.

"...I'm considering the sale of (website). I have thoroughly enjoyed the time spent over the years improving the website and meeting people involved in gamebird propagation. If you should hear of anyone interested in expanding their existing website, or want an established site, please refer them to me. The site operates in the black every year, has one of the highest gamebird related visitation rates and one of the best message boards/ forums for exchanging gamebird information. Over the past 12 months the site has experienced over 1 million hits and 252,000 visitors! The message board has approx 600 active members and over 8000 posts/messages."

It has a forum, some articles, and a bookstore that sells books in my genre.

Anyway, any help y'all can provide personally or pointer in the right direction would be EXTREMELY welcome.

Josh

[Blinky]

hi all4jah.
First about the paying process...The owner of this web site you are trying to buy will accept one of these common ways via PayPal, Visa Electron, Wire, Stormpay or/maybe check.Usually the deal is like this: paying the first half and after receiving the site the second payment. ;)
That's all I can say about it.Wish ya great deal.
Regards.

[all4jah]

How would you recommend doublechecking on the stats and profits for their website? Do you require tax forms or server logs, etc?

Thanks.

[Blinky]

I think about the check you should deposit your money in a bank and after that the bank will transfer then after your name( with some transfer tax - that's another way banks earnig money).But I am not 100% sure :rolleyes:
Yeah, I suppose with 2 checks.And by the way the visa electron debit card Max cashout money per day is $300, so doublechecking is not a bad Idea after all.I think there might be a insurance for this staff, and as a good bank, it has to offer express service (within 2-3 business days). :D
all the best

[rogerd]

There are escrow firms commonly used for domain transfers and the like that you could employ. I think going the escrow route would make a lot of sense in that it protects both parties.

Something else to think about: a non-compete clause for the previous owner. (I have no idea how this would work internationally - the laws where the seller lives might govern.) You want to protect yourself if the owner gets bored after a month or two and starts spamming your forum with announcements for HIS new forum. This could be particularly problematic if the owner is well known and respected in his community.

DO check the stats - see if you can get direct access to his reporting software or the raw logs. Be sure you know what the traffic really is - a million "hits" means nothing at all. You want to know about pageviews (not including bots & spiders), daily/monthly unique visitors, referral numbers from search engines and other sites, etc.

If the money involved is at all serious, have an experienced attorney check things out.

Good luck!