Quote:
Originally posted by scoreman
Income is not all you will want to examine to determine worth.
Look at the chargeback and refund history. That could be a ticking time bomb. I would also look closely at the traffic base being used to feed the sites. Will the current channels of distribution be in place when the site is purchased and for how long? Who are the affiliates? What are they doing? Has it been managed with longevity in mind (i.e. are the partners spamming, targeting questionable keywords in the SEs, are they ethical?). I would also look at the churn rate, the server configurations, the 2257 documentation, how developed the site is for efficiency (i.e. how many billing options were used, how the exits were handled, whether they used cascading billing, whether there was any decent opt in lists compiled, etc etc etc.). Get an escrow acct for warranties and representations made by the seller. Get a lawyer.
You arent a newb at this JR, so im sure what im saying is not breaking new ground for you. I just wanted to point out that the traps for any site purchase are in matters above and beyond looking at copies of their checks from iBill/CCBILL/Paycom et al.
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Very good points Scoreman,
If he runs his own merchant accounts, you will be able to transfer the member database and view the bank statements from the merchant account and should request copies of all of the chargebacks as well. Analyze the chargebacks for the past year for a trend up or down and have your merchant account use the same descriptor name if you are going to get one (smart thing to do) so there is no discrepency on the billing statements.
Mitch
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Mitch Farber
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