This presentation is from Affiliate Summit West 2016 (January 10-12, 2016 in Las Vegas, NV). Session description: Expanding your affiliate business through website acquisitions and sales? Our experts will provide detailed strategies for buying and selling websites guaranteed to maximize your revenue potential.

1. Lessons Learned from Several Million
Dollars Worth of Site Acquisitions
Chuck Mullins
Founder
CashForYourSite.com
Chuck@CashForYourSite.com

2. Questions to Ask Yourself

Why buy and sell websites?

How much is my time worth?

Do I want a Job or an Investment?

What kind of return on my capital investment do I
need?

What size deal makes sense?

What kind of risks does the site have?

What are my plans for this site?

3. Why Buy or Sell Websites

Know your reasons for buying:
− Cash flow
− Asset appreciation
− Synergy
− Untapped potential
− Private Blog Network

4. Why Buy or Sell Websites

Know your reasons for selling:
− Cash out
− Redeploy capital
− Declining market
− Focus on core business
− Bored

5. How Much is Your Time Worth
$100k a year / (52 weeks x 40 hours) ≈ $50 per hour.
Don't work for less than you are worth:
Website Monthly Income = $1,000
Hours Required Per Week = 10
$1000 / (4 weeks x 10 hours ) = $25 per hour
Website Monthly Income = $10,000
Hours Required Per Week = 10
$10,000 / (4 weeks x 10 hours ) = $250 per hour

6. Do You Want a Job or an Investment
Site For Sale : $3000 a month pure profit.
Would you buy this site for a 6 month multiple @
$18,000?
What are the real costs in terms of time?
How much are you worth = $50 per hour
$50 per hour x (4 weeks x 40 hours ) = $8,000 of your time
$3000 / (4 weeks x 40 hours ) = $18.75 per hour
Hours Required Per Week = 40

7. What Kind of ROI Do You Want

Typical investment:
− CD Rates 1%
− Bonds 2-6%
− Stock market 7-12%
− Real estate 5-14%

Why do these investments pay different rates
of return?

What kind of return do you want?

8. What Size Deal Makes Sense
$50 x 40 hours x 12 months = $24k per year.
$50 x 40 hours x 12 months = $24k per year.
Total return needed on $500k investment would be $149k or
a 29.8% time and risk adjusted return.
The larger the deal, the less your time requirements impact
the return.
$100k x 25% = $25k per year
$500k x 25% = $125k per year
Total return needed on $100k investment would be $49k or a
49% time and risk adjusted return.`

9. Is The Investment Worth The Risk

How much competition is there?

What are the barriers to entry?

Are there one or more critical employees?

Does the business rely on an outside source?

Does the business exploit something?

What kind of SEO has been done?

Are there pending changes to the law?

Is the business seasonal?

10. Is The Investment Worth The Risk
•
What is the traffic mix?
− Organic traffic
− Paid traffic
− Social traffic
− Direct traffic
− Referral
− Affiliate

11. Due Diligence Tools

(P) - Centurica.com - Due Diligence Services $149 to $549+

(F/P) - SpyFu.com

(F/P) - Moz.com & Moz.com/researchtools/ose

(F/P) - SEMRush.com

(F/P) - Majestic.com

(F/P) - ahrefs.com

(F/P) - Screamingfrog.co.uk/seo-spider/

(F/P) - Deepcrawl.com

(F/P) - ScrapeBox.com
F = Free P = Paid

12. Due Diligence Tools

(F/P) - DomainTools.com

(F/P) - DomainIQ.com

(F/P) - SameID.net

(F/P) - ReverseInternet.com

(F) - Archive.org

(F) - Alexa.com

(F/P) - Compete.com

(F/P) - CopyScape.com

(F) - BuiltWith.com

(F) - State Business Websites - Example: kepler.sos.ca.gov
F = Free P = Paid

13. Due Diligence Tools

(F) - Google Trends

(F) - TradeMarkia.com

(F) - SocialMention.com

(F/P) - ReverseInternet.com

(F) - SpyonWeb.com

(F/P) - KeyWordSpy.com

(F) - SeoMastering.com

(F) - YouGetSignal.com

(F) - BannedCheck.com

(F) - Facebook.com / Linkedin.com / Twitter.com / etc.
F = Free P = Paid

14. Due Diligence Tools

Has the site been affected by Google updates?

15. Due Diligence Tools
 How long has the site been ranking?

16. Additional Due Diligence
 Read the comments of other prospective buyers
 Research the seller not just the company
 Ask questions that you have already researched and know the
answers to
 Ask seller to add you to their Google Analytics account
 Ask questions about potential revenue streams
 Ask what plans the seller had for the business moving forward
 Ask seller to verify all claims with documentation
 Ask about anomalies
 Ask about skills and time required to operate the site
 Ask, Ask, Ask!!!
 Does everything add up?

17. What Are Your Plans For The Site
 Create a detailed plan and time line before closing on a deal
− Migration
 Backup website
 Transfer domain
 Update income sources
 Take/transfer accounts
 Transfer website
− Operation
 Who, what, when
− Expansion / Optimization
 Who, what, when

18. How to Transfer the Site
 Communication is Key
− Agree on specific terms and a transition plan before you agree to
purchase the site.
 What is your pain point?
− High value vs. low value sites
 Prepare a contract detailing the terms of sale:
− Time frame and consequences for transfer
− Payment Terms
− Seller Support
− Non-Compete
− Non-Disclosure
− Non-Performance
 Contracts With Key Employees

19. How to Pay For a Site
Send Payment First:
• Escrow.com
• Paypal.com
After Transfer of Domain and Files in Hand:
**Warning these methods have little to no recourse!
• Check
• Cash
• Wire Transfer
• Western Union

20. Where To Buy and Sell Websites
Broker
- QuietLightBrokerage.com
- FEInternational.com
- DealFlow.Flippa.com
- DigitalExits.com
- WeSellYourSite.com
- AcquisitionsDirect.com
- WebsiteProperties.com
- W3BusinessAdvisors.com
- WebsiteBroker.com

21. Where To Buy and Sell Websites
Auctions
- Flippa.com
- Ebay.com
Market Place
- BizBuySell.com
- BizQuest.com
Miscellaneous
- RhodiumWeekend.com–Internet Investment Summit
- Master Mind Groups
- Networking
- Contact Site Owners
- Craigslist
- Forums

22. Pick The Right Broker
Asking Price of Site $23,000
Excerpts from a conversation with a broker
I ask for a P&L and clarification on numbers that were provided but
were incomplete.
Broker - "This is a bargain basement sale. Not a $600,000
acquisition. So unfortunately that means we have more potential
buyers and less available time to entertain such in-depth
questions which certainly do feel like competitive research vs
due diligence." … " this is a quick sale and we have others
interested. Currently you don't have an offer on the table but
you have questions which, I'd argue, are irrelevant to what the
asset package / sale is. So it's just a matter of balancing the
time and needs of the clients and other prospective buyers."

23. Bonus Tool Slide
• (P) - Hubstaff.com – Time Tracking Tool for out sourced labor
• (P) - BaseCamp.com - Project Management
• (F/P) - Trello.com - Project Management
• (F/P) - MainWP.com – WordPress Plugin to Manage Multiple Sites
• (P) - DepositPhotos.com - Cheap Stock Photos
• (P) - SafeSiteCertified.org - Trust Seals to Increase Conversion Rates
• (P) - DigitalMarketer.com – Boost Traffic, Conversion, & Engagement
• (P) - AppSumo.com - Offers Amazing Discounts on Great Tools
• (F/P) - Buzzsumo.com - Lists Top Social Media Posts
• (P) - TextBroker.com - Inexpensive Quality Writers
• (F/P) - UptimeRobot.com - Monitor Site Uptime/Downtime
• (P) - Optimizepress.com – Easily Create WordPress Landing Pages
• (F) - Google Docs - Collaborative Document Editing
• (P) - TechSmiths.com - "Camtasia" Screen Capture Videos & Tutorials
• (P) - FreedomVoice.com - Vanity 8XX Numbers, Auto Attendant, Mailboxes ...

24. Lessons Learned from Several Million
Dollars Worth of Site Acquisitions
Chuck Mullins
Founder
CashForYourSite.com
Chuck@CashForYourSite.com