Advantages of Buying an Existing Website
Length: 492 words (1.4 double-spaced pages)
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Reprinted with permission of VotanWeb.com
With any new website you have two challenges: developing the product or service and then seeing what if anything, people are willing to pay you for it.
Regardless of a website's past performance, an existing website will, at the very least, have a history from which you will be able to make certain decisions. Even if the website was not profitable in the past, your strengths may lend themselves perfectly to turning it into a viable venture. Furthermore, you have the ability to verify what the website did in the past that resulted in the current status of the operation.
The website is 'up and running' already.
It is likely to have an existing client base.
The previous website owners are likely to lend support and goodwill.
There is a tried and tested website formula to emulate.
The website can be sold on by yourself.
Generally more chance of success than starting a similar website from scratch.
A large investment is often required,
Website transfer costs i.e. lawyer, analysis, accountant etc..
A large amount of time required to research the opportunities available.
Ease of Investigation
In order to buy the right website, you will be required to do a thorough investigation of its past activities, its operations, its current status, the competition, the industry and its future potential. You will accumulate this information and then you will have to determine how it measures up with you at the helm. Clearly, this information gathering will be substantially more accurate and easier to obtain when dealing with an existing website, as you will have the resources available from which to get the details.
You will have the benefit of purchasing a website that has an infrastructure including customers, suppliers, servers, and systems. This will allow you to focus on building the business as opposed to a start up or new website where everything begins at ground zero.
Purchase Price Differences
Buying an existing website does not mean that it will cost you more. In fact, many times it's less expensive than launching a new website. Even in those cases where it may require a premium, at least you know what you are getting if you investigate it properly. A new website will require a whole series of studies that will indicate that "theoretically' the website should do well.
However, the only thing the studies cannot guarantee is whether or not you will be successful. Also, complex website can take many months to build. You can avoid all of this when buying a website.
Flexibility in Negotiating
You will have far more flexibility when negotiating the purchase of an existing website versus any other options available; it's not even close! Everything from the purchase price to financing is open to negotiation. Doesn't it make more sense to put yourself into an environment where you have the greatest number of options available?