blee088 — 2013-04-01T01:40:04-04:00 — #1
Hello, I'm not sure where to put this but I am trying to get into the website business. I've been doing my own research about it, and I figure it's a good idea considering that I've grown up on the internet. I found a website on Flippa, please take a look:
I would just like to know your opinion on this. I am willing to put all of my money that I have saved for a year into this, and I want to make sure it is a good idea. I work a very terrible job that is deteriorating my health, I have been tested with off-the-charts levels of every toxic metal poisoning you can think of and I make just above min wage. I don't have a degree or much experience being 23 so I must find new ways to make money. I'm not asking for you to give me in-depth advice. I just need a little re-assurance, that putting 6000 or a little more on this website is a good idea or not. To me, it seems to be good, and I can't quite see what's wrong with it. Chances are, however, the reserve is probably more than I can spend.
molona — 2013-04-01T06:51:43-04:00 — #2
It is hard to help you in such a extreme decision and change of life.
Assuming that his figures are real, it may be a good business. But be aware that for a business to grow you have to dedicate time, energy and, since it looks that you're moving from one industry to another completely different, lots of learning.
The SEO business can be extremely profitable yet it is the business where you can find the highest rate of informed misinformation (meaning that there are lot of so called gurus but they don't have a clue).
In relation to backlinks, that's even more true.
So the questions you should be asking to yourself are:
- Is this what I want?
- does this field excite me enough, am I passionate enough about this topic? Do I really want to learn all that there's to know about it?
- In addition to the business model that's been created... do I have any ideas to keep the business growing?
- How long do I want to run this business? Will it be just a small step to a bigger plan?
Once you know the answer to these questions, you'd be able to know if you want to get into this business or not.
The good thing about this particular site is that the owner says that he will coach you... but make sure that if you go for it, you can find a backup in case that he doesn't (some people have good intentions but then they can't find the time)
mikl — 2013-04-01T08:35:05-04:00 — #3
I've taken a look at this site. Based on what I saw, I'd advise you to be very cautious about going ahead with it, for several reasons.
First, it looks just a little too good. If the profits are really as good as they claim, a lot of people are going to be bidding for the site, and the final price might be much more than you want to pay. I'd also worry about the product that the site is offering. Link building services are getting a somewhat bad name these days, and there's a general trend against them in the search engine world.
Given your present circumstances, this looks like a really risky move. You say you hate your job. If I was you, my first move would be to try to find a job I would enjoy. If that's not possible, and if you really like the idea of running an on-line business, I would start on a smaller scale, in my spare time; I'd look for some idea that didn't require a lot of capital, and which wouldn't be a disaster if it failed. I would carry on working in my day job until I had built up some expertise in the world of on-line marketing, and only then start looking around for new opportunities.
Keep in mind that the above is just my own view, based on what little I know about you and the site in question. You might well feel that it is worth going ahead with. But I would urge you to think carefully about the risk before you do so.
jaagare — 2013-04-01T10:34:37-04:00 — #4
First of all to run an online business you need a similar kind of commitment and hard work that you would require in any kind of job. To top that all, there is no stable income coming and would vary drastically from time to time so one should be ready to face ups and downs in business. Coming to the specific site - I would dig deep and see if the revenues are true and if yes then take it with a pinch of salt and cut down estimates. I have been running quite a number of sites and its not as easy as you start a site and start making instant profits. I have had some sites running for close to 2-3 years and now I am beginning to see consistent hits / page views and income. I understand that backlinking is a separate business line from what I have, but I believe the basics would remain same. Any business according to me would take close to a 1000 days to recover your initial investment and on going cost. Hence, given that the said site is making $2884 in 25 days which is close to $100 a day I would really begin to check all the details regarding how the income is being generated and how much of marketing cost is going into getting the income. If a site generates $100 a day usually sites sell at close to 3-10 times their expected earnings. That would mean that the price would be anywhere from 10k to 30k for such a site which would be a bit unrealistic for a new site. Probably if you have that kind of money you could very well try to angel fund smaller startups who need such amounts to make it big and if it clicks then you could have great profits
blee088 — 2013-04-01T17:22:15-04:00 — #5
I want to thank you all for the advice. I am a bit cautious about it. he says most of the traffic is paid traffic. I'm not really familiar if that makes things difficult or not. But that would make the search engine problem irrelevent. But, the paid traffic That would of course bring the profit down a bit. It shows $2,300 for gross, $1600 for profit. Since I posted this thread, he put up a BIN for $7000. So that is 4.35 times the profit/month, which is low, but not that absurd. it does fit the 3-10 number you suggested.
I think you may be right about getting a smaller site but right now I really just feel like putting a lot of effort and making as much money as I can. I'd rather get rid of all my savings and have a website that is making a lot of money than keep my money and make a couple hundred a month. Would it be a better idea to get a few smaller sites or would that be too much work? Btw, once I got this site I wouldn't be quitting my job at least not right away. I just need make more than minimum wage right now and I'm already working full time. And like I said, over time I want to cut down my hours for health reasons.
Also, is this type of business have a longevity to it? I'm assuming as long as there are websites people will need this type of thing, right?
as for the business plan. For the most part, This is mostly a stepping stone. But most of all, it is out of mere survival. I want to be able to be in control of my income. I still plan to eventually quit my current job and get another job, and still be running this site. Maybe at some future date, if I happen to have saved up some money, I will sell the site use that to invest in something else. But right now I'm just focused on getting money so I can afford living!
unit7285 — 2013-04-01T19:31:08-04:00 — #6
There are a lot of things you can do with $6,000. If you are not 110% certain that this is exactly what you want to do, and that it will fulfil all your desires and objectives, then leave it be and walk away.
There are at least 1 million other things you could do with your $6,000, and the chances are that some of these things represent a much better opportunity for you. In which case it is probably better to keep plotting and planning and researching and 'what if-ing' until something that REALLY suits you springs into view.
You're obviously not sure about this particular opportunity. Therefore it is almost certainly not suitable for you.
Be patient, and the right opportunity will come along.
jaagare — 2013-04-01T23:12:40-04:00 — #7
Well long term as you are thinking of still being on the job and only trying to generate extra income out of the site you buy, I guess you should then try to invest in some company which needs angel / seed capital as this will help you concentrate on your job while if rightly invested, the seed capital could give you good stable returns in the long run.
Like I mentioned, if it were that easy to generate such incomes everyone would buy out such sites and get such huge profits. Its not how it works. All figures need to be taken with a pinch of salt and it would also depend on how the site was marketed and how such huge incomes were generated within such a short period.
For the 6k that you plan to invest, you could even try your hand at domain auctions with single or two letter keyword domains which you could try to get at such prices and wait for the right buyer.
I would still suggest you wait for the right opportunity rather than taking a hurried decision. Do check out some sites like angellist or such sites that connect startups with investors and you might find some opportunity which you understand and would love to do in the long run.
mikl — 2013-04-02T02:32:18-04:00 — #8
In my opinion, that would be just as risky as the original suggestion. Putting seed money into startups can sometimes bring good results, but it is a high-risk strategy - not one for someone earning just above the minimum wage who also has health issues.
Let's keep the objective in sight. Blee's ultimate aim is not to invest $6,000, but to get out of a low-paying job that he detests.
jaagare — 2013-04-02T03:07:25-04:00 — #9
Well I am totally aware that its a high risk strategy and may even lose 100% of the investments but he is anyway ready to lose the $6000 from a single investment. By investing in multiple startups there would be some de-risking and a hope that any one or more of the investments would finally click in the long run.
He does not plan to quit job and work full time on the site. As per his post :
I still plan to eventually quit my current job and get another job, and still be running this site.
You would agree that maintaining and running a website is not really a 30 minute job and would require investment of time, money and energy with varied income results. Income at the current rate stated is no way guaranteed. I doubt someone within such a short time the site has been up can make $100 a day. I have been running sites for multiple years now with unique content and loads of hits and am yet to see such results.
Further, my suggestion was based on the fact that he has no previous experience running and maintaining a website so that has its own inherent risks.
I may be totally wrong in my suggestions, but if I had that kind of money - I would definitely de-risk and start small by investing in multiple smaller opportunities than in a single opportunity
molona — 2013-04-02T06:32:06-04:00 — #10
I agree with @jaagare; on many things although at the end of the day, it is up to you @blee088 ;
Any business has its risks. You can loose everything even with a more traditional business. And that's why you should investigate carefully and decide if you want to do.
Do not only investigate the figures (you could try alexa and google and other tools to know if what he says is true. Also try to find his ads and investigate how that income is coming from), also investigate the seller and his reputation.
Maintaining a site is hard work, and needs dedication and time and lots of nurturing and energy. And very specially if you don't have experience in the field, and not even knowledge.
Let's say that his figures are right. The income will drop in the very same you take that domain (how much? who knows?)
Even if the seller guides you through the steps to retain that income and maybe even making it grow, there will be a moment that you will be on your own.
The only way that you may have a chance to succeed is if you're ready to work hard, study hard and move with times. As with any business, you'll have to update strategies, change them completely, see what works, see what doesn't, add new stuff, etc.
It is going to be tough ride, and there's a learning curve involved. Not as high as if you're becoming an engineer but it's not as easy as many people say. You'll be experiencing first hand the amount of rubbish that some "gurus" speak about SEO and internet marketing... to find that it is not true.
It is going to be stressing (even more if you have another job) and you simply need to love it to keep on going, and you need to measure your energies so you don't burn out in the first months and through everything away. It is a matter of making the right decisions, learning from mistakes and being constant.
Summary: If you don't love backlinking, don't even think about this web. If you do and are willing to spend the necessary energy to make this site grow, then do your investigation in relation to figures and the seller's reputation. Make a calculated risk, don't jump just becuase it looks profitable.
Edit: if this business is not for you, there are lots of things that you can try and get that income you want
kkk0 — 2013-04-04T03:39:58-04:00 — #11
its better to buy a web template which doesn't cost more than few dollars, and promote it to make money. established sites such as these are risky and expensive also since you haven't made it if any problem comes you will be at loss
dvduval — 2013-04-07T15:42:03-04:00 — #12
SEO is a rather volatile business, and sites can come and go. I looked at the backlinks to the site for sale over at Majestic SEO and I am only seeing links from Flippa. I personally do not feel this is a good decision, but of course this is only based on a my initial perusal.
blee088 — 2013-04-08T00:36:35-04:00 — #13
welp, I didn't get it. I bid $5000 and no one outbid me up until the very last minute. I got nervous the day of and didn't look at it until after the auction. i guess The seller extended the auction and set a new BIN for 5500 and someone took it. I sort of felt relieved to be honest. It just felt like such a gamble. I may have dodged a bullet, or maybe i could have made off. I guess I'll never know. I'd like to thank you all for your advice. It has helped a lot. I'm going to periodically check Flippa until something that really interests me and catches my eye. I'm sort of making extra money with the new bitcoin craze, and day trading crypto-currencies. So that is sort of an investment that is working out Ok so far. I'm going to try be a bit more prudent regarding business decisions from now on.