Site buying and selling refers to buying and selling websites that are already in operation. It is attracting attention from people involved in online business because it has great benefits for both the seller and the buyer.
In this article, we will explain the details, advantages and disadvantages, and flow of site buying and selling.
What is site buying and selling?
First of all, what is site buying and selling? We will explain the details of site buying and selling.
Buying and selling websites operated by companies and individuals
Site buying and selling refers to buying and selling websites that are already in operation. It is also called “site M&A” because it involves buying and selling businesses conducted on websites.
A website owned by a company or individual is sold, and the person who purchases it takes over the operation. Rights such as the direction of operation will be inherited by the purchaser.
By purchasing, you don’t have to start up a website from scratch.
By using site buying and selling, there is no need to launch a website from scratch.
By purchasing a website that is already
indexed
by
search engines
and has a lot of traffic, you can start operating it immediately.
Types of site buying and selling
There are two ways to buy and sell sites. You can buy and sell between individuals or use an intermediary service.
buying and selling between individuals
Site sales include sales between individuals. The majority of transactions between individuals are conducted over the Internet, and are carried out on social media, bulletin boards, auction sites, etc.
Transactions between such individuals may be subject to reliability issues. Therefore, in order to conduct a safe transaction, it is important to draw up a contract and check the reputation of the seller.
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Buying and selling using intermediary services
Compared to buying and selling between individuals, you can buy and sell on the website with more peace of mind by using an intermediary service.
First, the person selling the item registers with the brokerage service and provides information about the website they wish to sell. The intermediary service will perform a review based on the information provided and make a decision on posting. After that, a brokerage contract and a confidentiality agreement are concluded between the brokerage service and the selling party.
Brokerage services introduce listed websites to interested takeover candidates. Negotiations with potential transferees are conducted directly by the seller and the potential transferee, but intermediary services may intervene if necessary. Once negotiations are finalized, the seller and potential transferee will conclude a contract and receive transfer consideration.
On the other hand, the buyer registers with an intermediary service and considers websites that interest them. Once we have finalized our considerations, we will negotiate with the seller through an intermediary service and conclude a contract. After that, we will conduct an acceptance inspection of the website and pay the price.
Advantages of buying and selling sites
What are the benefits of buying and selling on the website? I will explain it from the perspective of both the seller and the buyer.
Benefits for the seller
By buying and selling sites, you can reduce the effort and time of operation.
Also, if your website is paid, you can turn it into an asset all at once. If your site is successful, there’s a good chance you’ll be able to sell it for a high price.
Advantages for the purchaser
By buying and selling sites, you can save the time and effort of creating a site yourself.
You can also start earning quickly with already built sites, and minimize your risk by purchasing a successful website.
Disadvantages of buying and selling sites
There are also disadvantages to buying and selling online. This will also be explained from the perspective of both the seller and the buyer.
Disadvantages for the seller
The disadvantage for the seller is that the selling price may be low.
Additionally, since you are no longer responsible for operating and managing the property after the transfer, you may not be able to operate it as you had expected.
Disadvantages for purchasers
The disadvantage for the purchaser is that there are cases where you may not be able to get the expected revenue from the site.
Additionally, if the website does not operate as expected, you may have to re-operate and improve it yourself, which may incur additional costs.
Flow of buying and selling using intermediary services
When using an intermediary service for site buying and selling, what is the process for buying and selling? We will explain the flow of buying and selling for both sides, the seller and the buyer.
selling side
If you want to buy or sell a site, you must first register with an intermediary service. After registration, buying and selling will proceed as follows.
Registration for intermediary service
Provide information about the website you want to sell to the intermediary service and register it. When registering, it is common to provide information such as the desired selling price and the reason for selling.
Examine the website for sale
Brokerage services will screen websites for sale. Screening items include the number of website visitors, revenue, and quality of content.
Conclusion of intermediary agreement and non-disclosure agreement
If you pass the screening, we will conclude a mediation agreement and non-disclosure agreement. The brokerage contract includes information about the website to be sold and the conditions of sale. A confidentiality agreement requires you to keep information about your transaction confidential.
Negotiations with transfer candidates
Our brokerage service introduces prospective buyers who are interested in the website you are selling. The profitability and growth potential of the website are important points for candidates to take over. The seller negotiates with the potential buyer and agrees on the price, conditions, etc.
Signing a contract with a transferee candidate
If negotiations proceed and an agreement is reached on the terms of sale with the potential buyer, a contract will be concluded. The contract will include the transfer price and terms of sale.
Obtain transfer consideration
Finally, you can earn transfer consideration. The brokerage service may receive a portion of the transfer price as a commission based on the sales contract.
Additionally, after the payment of the transfer price is confirmed, the brokerage service will pay the seller the amount minus the commission from the transfer price.
When using a brokerage service, buyers make payments to the brokerage service and sellers receive payments from the brokerage service. By intermediating payments through an intermediary service, you can reduce troubles and concerns related to buying and selling.
purchasing side
When buying or selling a site, there are great benefits for the buyer as well by using an intermediary service. Now, we will explain the flow when the buyer uses an intermediary service to buy and sell on the site.
Registration for intermediary service
First, register with a site buying and selling intermediary service. To register, you basically only need to enter information such as your email address, password, and name. By registering, you can receive information about websites that are for sale.
consider the matter
Once you have registered, you can view information about the website for sale. Information on websites that are for sale includes price, number of accesses, revenue, operator information, etc. From here, select the website that interests you.
Negotiations with transfer candidates
If you have a website that you would like to purchase, we will begin negotiations with potential transferees through our intermediary service. A brokerage service acts as an intermediary and negotiates the sale price and terms.
Signing a contract with a transfer candidate
Once negotiations are finalized, a contract is drawn up and signed with the transfer candidate. The contract will clearly state the sales price, payment method, when the website will be taken over, and how the site will be inspected. We will proceed according to the terms stated in the contract.
Website acceptance inspection
Once the contract is signed, we will conduct an acceptance inspection of the website. The website acceptance inspection involves the participation of the buyer and seller, as well as the person in charge of the brokerage service. The acceptance inspection includes confirming the normal operation of the website and confirming the contents stipulated in the contract.
payment of consideration
Once the website has been inspected, we will make the final payment. The method of payment must be agreed in advance in the contract. Generally, payment methods such as wire transfer, credit card payment, and PayPal are used.
Once the consideration has been paid, the sales contract is complete. However, you must comply with the precautions specified in the contract.
For example, when the seller transfers the rights to a website, if there are issues with registered trademarks or copyrights, those issues will be passed on to the buyer. Therefore, it is necessary to carefully examine the application in advance to ensure that there are no problems.
What websites are in high demand?
When buying and selling websites, if the website is in high demand, it may be sold at a high price. Here, we will explain the characteristics of websites that are in high demand.
Long history of operation
If a website has been in operation for a long time, it tends to be in high demand because it has accumulated a lot of content and access.
Websites that have been in operation for a long time are highly reliable and are easily evaluated by search engines, giving them an advantage in terms of
SEO
.
Operates in high demand genres such as finance and education
Demand also differs depending on the type of website. For example, genres such as finance and education are said to be in high demand because they provide information that many people need.
Other genres that are closely related to people’s lives, such as romance, beauty, and real estate, are likely to be in high demand.
Already has a wealth of articles and content
The more articles and content your website has, the more opportunities it has for search engine visibility.
Additionally, websites with a wealth of articles and content tend to be in high demand because they are trusted by users.
Sales are not dependent on one person
If a website’s sales depend on a few, the demand for that site tends to be low.
For example, if affiliate advertising revenue makes up the majority of your website’s sales, demand may be low because you are dependent on that advertiser.
On the other hand, websites with multiple revenue streams are in high demand because the risk is spread out.
summary
In this article, we explained the details, advantages and disadvantages, and flow of site buying and selling.
Buying and selling websites is a meaningful transaction with benefits for both the seller and the buyer. Further activity is expected in the web industry in the future.
Why not consider buying and selling sites after carefully considering both risk and return?