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Two major things you need to take into consideration.
what % of the 20K is from his affiliates generating revenue and what % is from his own traffic generating the revenue. I would feel safer if it was all affiliate revenue. I can build a membership site, get it up to 20K net in a couple months sell it to you and direct my traffic to my new sites i am building, etc.. so what are you left with 2 - 3 months of declining rebills and a huge advertising expense you need to pay that is cutting into that nice 20K net per month the guy was telling you about when you bought the business. You would have to be a fool to think the traffic is going to stay 100% when you buy it.
The other thing is who does he use for processing ???? I could have sold you guys a hell of a deal on memberships sites back in August... Would you be sick if you paid 100K for a site thatwas neeting 20K a month that was using ibill, do you think you would have been fucked? Considering 3rd party billing companies go out of business on a daily basis you might want to check into that.
Last thing is why does he want to sell ??? 19 out of 20 times it's BS. he wants out... well if he thinks someone will pay him for 3 - 4 years then that makes sense, but if he is only going to get 6 months of income from the sale, why not hire someone one to run it for you if you dont want to be bothered with it ? makes no sense ?
And for the scammers... i can go use a credit card to buy adverising on a site that makes 20K a month on the books (minus showing my credit card) when in reality my site breaks even but i market it as 20K net... how can you spend that kind of money and just assume they are telling the truth, especially when it makes no sense for them to sell.
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ICQ: 86364801 Email: will [at] innovativeassets [dot] com
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