Buying websites for passive income is in my opinion the best way to invest your money (and yes I have, and do invest in many other things). However, not only does it allow you to have time independence, but also location independence meaning you are free to be anywhere in the world. And as your own boss this what allows you to choose the hours you need to work. Or should I say, if you choose to even work! (and yes needing to work in most online businesses is an option too).
But that is another article for another time.
For now let’s get stuck in and start learning these 6 exclusive secrets to buying websites for passive income that most people don’t know about.
Buy From Brokers
Now while most people are out there hustling on auction websites such as Flippa, most people don’t realise they can get premium businesses when buying from website brokers. I too first started out using websites like Flippa, and to be honest I found it tough to batter my way through so many poor websites for sale. And even recently, Flippa now has a broker side to their business. Which you can check out for yourself, and it is quite cool actually.
And the reason I tell you this is because you can always earn more money, but you can’t earn more time. And there is a lot of time out there wasted by individuals sifting through dud online businesses. C’mon guys lets work smarter and not hard here, and you can do this by using website brokers instead of crummy auction sites.
Stick To What You Know
If you are an expert in your field, why would you choose to go somewhere else? I can understand if you wish to develop more knowledge in another area, however when first buying websites for passive income wouldn’t it make sense to stick to what you know?
For example if you are a personal trainer, wouldn’t it be best to buy websites that is in the health and fitness niche? Chances are you’re going to know who your audience is and what they want already from these types of websites you are looking to buy. And since you know their problems, you know how to help them already. Where as if you were to buy a website selling flowers it would take you twice as long. If not longer, whilst you still need to actually learn not just how the business runs but also about the products and why your customers want them.
Again I will repeat myself (yes on purpose so you remember), let’s work smarter not harder. We were born with brains for a reason right. Sticking to what you know is always a wise move.
Due Diligence Is Key
Through everything I have learnt about buying online businesses, this is by far the most important thing we need to do. I am telling you now, it is key and the amount of time you spend doing your due diligence will really show when it comes to the online business you buy.
I have found that the more time I spend doing due diligence, the better I am rewarded with the right business that checks out. If I spend a long time looking high, low and under every single rock on a particular listing and it checks out. I am then graced with a superb business to takeover that grants me ease of (business) transfer and maintenance to continue running the site.
I tell you this because I urge you to spend some time on your due diligence and really look around every single corner, as you never know what may be hiding. If you need more help with your due diligence be sure to check out these 7 killer resources for buying Internet businesses.
Second from spending a lot of time on due diligence when buying websites for passive income, is spending time to ask the seller questions.
You see a lot of investors will take for granted the option to get on the phone and talk to the seller, don’t be that person. This is a part of your due diligence and as I wrote about before, the more you put in the more you get out.
The same with asking questions, the more questions you ask the better! Obviously be respectful of the seller’s time and refine your questions so you are not asking the same thing but in a different way. Yes, on my first business I brought I did this and after I hung up I realized how much of a douche I sounded like.
However I was still content because I asked so many questions, and that is your job. Hold yourself accountable to do this and you will find that it pays off.
In all aspects of life professionalism pays right, the higher you are up professionally or the more skilled you are the more money you make. And that is the same when it comes to buying websites for passive income. If you know what you are talking about and how to communicate with the seller, they will certainly take notice.
This means when the seller acknowledges that you know what you are talking about, their guard is automatically dropped and they have much more respect for you on a buyer to seller level. Now this DOES NOT MEAN you can be a narcissistic investor and bid for the business with your ego!
This means that when it comes down to 5 other buyers interested in the website, which the seller may be in contact with. Who do you think the seller would prefer to sell the business to? The person who is inconsistent and unprofessional or you (the professional) who knows what you want and can make the purchase a super smooth transition for the seller also. Another sneaky tip – this gives you purchasing power too when putting down an offer (but don’t be too greedy).
Don’t Be Afraid To Walk Away
Sometimes this can be real tough!
When buying websites for passive income, you would have spent a lot of time on due diligence and checking out absolutely everything about the business. But there could possibly be just one thing that you are a bit shady on. Which means you start to second guess it, but at the same time you are positive that even with that slightly fishy smell seeming insignificant, you could still possibly make the investment work.
And although that fishy smell could be small, it could too be detrimental. This where you need to weigh up your risk versus reward.
And from my experience, I have found that by sticking to the old saying of “If in doubt, leave it out” has served me well. I have in many different cases seen those websites I spent time on during due diligence not even sell. And there is a good reason for that.
So don’t be afraid to walk away no matter how long you have spent looking into the business, if there is that one little thing you are even slightly concerned about, walk.
“Sometimes your best investments are the ones you don’t make”
I hope you though this post was informative.