Buy A Website Through Flippa

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hi guys David Jenyns here from podcast interviews calm and today we’re excited because I’ve lined up an interview with one of the guys behind flipper flipper calm at the moment for those of you who haven’t heard is pretty much all arranged everybody’s getting into buying and selling web businesses and it represents a fantastic opportunity and I’ve got Luke Moulton here thanks for coming down excellent excellent and we want to pretty much just delve into what are some of the best practices for buying and selling websites so if you guys want to take advantage of this opportunity you know how this starts so maybe if we just dive straight into a short let’s go straight into the meat and perhaps I suppose there’s two sides to this coin is dying and then there’s selling of domain names so yeah essentially flipper is a marketplace and it’s an option style marketplace so similar to eBay where we have where we have buyers and sellers so we essentially provide a marketplace where buyers and sellers can come together and buy and sell websites and domains yeah now on the on let’s say maybe you can we start with the buying side the generous pad she can take us through the I suppose best practice let’s say someone’s wanting to get started they want to buy a domain at home if they’re their first time what are some of the things that they should look out for when doing the right food religious so we always try to stress certain supplies they do the due diligence and there’s a lot of things that you can do to make sure that you’re getting essentially good value for money and and that you’re buying an established business I mean if you want to be a buying an established business with revenue then trail it like buying business you know do due diligence look at check revenue a couple of things that I always do when I’m looking at sites in the marketplace first thing I do is actually run it through it tool called SEM rush SEM rush is essentially it checks on what so keywords the demands ranking for that you’re interested in and it can actually show I think it’s up to up to ten of the keywords that it’s ranking for so you can you can always cross-check those with whatever the seller information the sellers actually provided on the option that’s a bit of due diligence yeah always try to get analytics particularly google analytics and people do list aw stats which is another steps package but analytics is certainly probably the more reliable steps to be looking at couple of other things are actually asked for asked for access to Google Analytics as in log yes and you know and this is if you’re buying if you’re seriously behind spending thousands of dollars buying what online business you know you might not go to this depth if you’re only spending a couple hundred dollars on buying a lower-end site which I always say this is playoff on flipper as well you know sites will start from usually around the 100 200 dollars and go up from there but you know if you’re seriously spending a fair bit of coin do as much due diligence as you can a lot of things you should do and you David being an SEO guy would know that you should check backlink profile SEO Mars has a great tool called open site Explorer and and you can have a look at what sort of backlinks are pouring toward Emine so you know it doesn’t have you know high high page rank sites linking back does it have a good spread of links you know some of these SEO guys say they have their own network and sometimes they they they control all the links that’s something you’ve got or example yeah we’re not supposed to doing this and due diligence the main thing obviously you don’t want to get duped and I think that was one of the good things about flipper with especially with building up these profiles and having trust rank and different things like that so I suppose there’s less chance of getting duped if you go for a seller who has proven themselves a few times before yeah definitely yeah well I’m curious to know if you’re finding if there’s many situations I don’t know if people come crying to flipper if something doesn’t quite go right or like is that a concern like should people take what the person saying in their listing at face value and say no not necessarily well unfortunately we’re not in a position to be manually checking every single option and which is why we’ve stressed that you need to do your due diligence and don’t always take the sellers information for granted so yeah try to do background checks look at the look at what other comments people have left the seller yeah and that can be difficult like we’ve had recently quite a high profile site sold on the flipper and it was by very trustworthy men and I sold for about $90,000 yeah well he doesn’t sell those every day so and he hasn’t sold on flipper before so you know it can all sometimes be simplest as actually finding out the sellers real name and doing a background check you know google them yeah so you what see what some of their facebook we can or find out is that got a LinkedIn account and you know particularly if you’re spending a lot of money you want to make sure that the sales fair dinkum so yeah do a background check I think the other thing that comes to mind as well when you’re actually figuring out the valuation and this really is you know the million dollar question and it Dale’s come out with course recently to help people value websites in a traditional sense when you buy a business you buy it based on you know how much earnings has it happened you might do a a multiple of that earnings for a couple of years or something like that when it comes to online it’s it’s still a very new industry and people are finding their feet we have how do you determine what represents good value for you personally I don’t know if you find sell websites of it look you know I certainly have the lower end a lot to try and experience what our what our audience is experiencing it’s really it’s a really tough question how do you value a website and there’s a lot of factors if a site has revenue and profit there’s a general rule of thumb and it’s a very very loose one usually looking at any index of ten per month so take what the site is using per months multiply that by ten and it will give you a very very rough indication the value of the side there we plenty of high high-end investors out there that that wouldn’t agree with me and that’s why I say it’s a very loose rule of thumb um but certainly this the sub the sub the sub 5k mark even sub 2 k mark I certainly look at page rank traffic they’re really two other moments and it particularly facade isn’t showing much revenue you know someone signed it it’s turning twenty bucks a month through that sense then then focus on the traffic and and also obviously make sure you do YouTube diligence to make sure it is actually getting the traffic that the sales is because you know their traffic is is something that you can monetize and that’s where I guess this the speculative aspect of buying selling sites comes in one other important thing on traffic is is to actually check where that traffic is coming from not paid sources that learn the light switch off exactly and if you’ve got someone who’s selling the site and they’re getting five thousand visitors per month about 4,000 of those are coming for pay-per-click and they’re spending a couple of grand to get those visitors then the warning light should come on yeah you