Website Due Diligence

So You Want to Buy a Website? Here’s What You Need to Know

Hey there! If you’re considering purchasing an existing website, you’ve definitely landed in the right spot. I’m going to (literally) give you the A to Z of website investing. Intriguing, right? So, let’s dive right in and shed some light on how you can use due diligence to make sound, informed decisions.

Looking to learn how to buy a website? My detailed course covers the ins and outs of buying content websites - from finding a site, through website due diligence and valuation to closing the deal.

What Exactly is Website Due Diligence?

Website due diligence is the comprehensive review and investigation of a website before buying it. It’s an essential step in the digital acquisition process, just as it is in traditional business.

This process not only validates the website’s worth but also identifies potential risks, strategies, and future growth opportunities. Great insights!

Why Website Due Diligence Matters

When you buy something, you do your due diligence to figure out if it is something worth your while. For example, when you buy a car, you don’t just check the paint job; you kick the tires, check the engine, and even take it for a test drive.

Website due diligence is your “test drive” in the digital landscape. It helps you sift through possible pitfalls, ensuring that you’re not just buying a shiny front end. At the same time, it can help you find hidden gems with a lot of potential!

Here are some articles where I talk about just that:

Basic Principles of Website Due Diligence

The quality of data you get depends on the quality of your research. So, to do your due diligence right, make sure to:

  • Thoroughly review all website-related data.
  • Verify the website’s earnings and traffic.
  • Investigate the website’s SEO health and potential.
  • Evaluate the website’s overall quality, including aesthetics and functionality.
  • Understand the market and niche in which the website operates.

If you need some more guidance, make sure to check the links below:

Pros of Website Due Diligence

Website due diligence has numerous benefits that aid in creating a safe and informed digital investment environment. Let’s break down some of these advantages:

  • Helps you make informed investment decisions: As simple as it sounds, website due diligence equips you with all the necessary information about the asset, thus helping you make sound decisions.
  • Identifies and mitigates risks: Due diligence allows you to foresee and manage potential risks and surprise factors before they become problems post-acquisition.
  • Ensures a safer investment: Overall, due diligence minimizes the risk of scams, ensuring that your digital investment is safe and profitable.

Cons of Website Due Diligence

Despite the numerous benefits of pursuing website due diligence, it is not without its challenges. Below are some key considerations to keep in mind:

  • Time-consuming: The process of website due diligence can demand a significant amount of time due to the extensive nature of the review required.
  • Requires technical knowledge: The analysis often requires technical expertise, especially when examining aspects such as data analytics and SEO.
  • Potentially overwhelming: Due to the depth and breadth of the examination, the process can seem daunting, particularly for first-timers.

Is Website Due Diligence Worth Pursuing?

Despite the time and effort required, effective website due diligence is absolutely worth pursuing. It is an essential step that greatly reduces risk and leads to sound investment decisions.

You’ll appreciate its enormous value and potential. And if you’re not convinced yet, I talk about it a lot in my podcast:

  1. Financial Analysis – Understanding the Numbers
    • Review income statements, balance sheets, and cash flow statements. My Website Evaluator tool is great for that!
    • Look for consistent earnings and observe trends over time.
  2. Traffic Analysis – Evaluating Visitor Data
    • Examine the website’s traffic patterns and visitor behaviour.
    • Ensure most traffic comes from reliable sources and not from paid promotions.
  3. SEO Analysis – Checking Online Visibility
    • Review the website’s keywords, backlinks, and search rankings.
    • Use tools like SEMrush or Ahrefs for a comprehensive SEO report (if you can, of course).
  4. Market Analysis – Exploring the Niche
    • Learn about the website’s target market and competition.
    • Check if the niche is profitable and sustainable over the long term.
  5. Technical Analysis – Assessing Website Quality
    • Examine website design, user experience, and mobile responsiveness.
    • Look for potential technical issues, like speed problems or broken links.

Website Due Diligence Frequently Asked Questions

How long does website due diligence take?

It depends on the website size and complexity. For a smaller website, a few days to a week could be enough. But for larger, more complex ones, it might take a couple of weeks. The goal is to be thorough and meticulous.

What red flags should I watch for in website due diligence?

Keep a keen eye out for things like inconsistent earnings, sudden spikes in traffic, over-reliance on a single traffic source, dubious SEO tactics, or an outdated website design. Spotting these early can save you a lot of trouble.

All Posts in Category Website Due Diligence

Flippa Is Changing The Game

Flippa Is Changing The Game – Why I Am Excited & You Should Be Too

I have bought business from Flippa and I know many people who have too. If it wasn’t for Flippa I would never of even started my career in buying websites and wouldn’t have been able to help my clients make thousands of dollars from buying websites too. However, there was a time where many people …

Flippa Is Changing The Game – Why I Am Excited & You Should Be Too Read More »


BOB Podcast Ep 007: What Makes A Good Website Investor (For Beginners) With Adam Bebe

In this very special episode, I get to speak with Adam Beebe, Senior Broker of Latona’s Website Brokers where they sell 5, 6, 7 and even up to 8 figure businesses! We talked about what makes a good website investor for beginners.

We also explored the reason that drew Adam to the space of buying and selling websites. How do you become an attractive website buyer and be successful in buying websites? What is the biggest mistake buyers make and what they should have done differently?


BOB Podcast Ep 006: Charley’s Experience Buying A $2.5k per Month Website

In this exciting episode, Charley shares his experience on an investment where he sealed a deal for a $2.5 thousand per month website.

How to know if a business is for you or not? What are the things he learned in the process of doing his due diligence? What are the highlights he went through in the whole process of buying this business? What everybody else, who’s doing this, should be looking out for as well?

BOB Podcast Ep 005: Flippa CEO Blake Hutchison Explains Where Beginner Website Investors Should Start

Today’s very special guest is the Flippa CEO, Mr. Blake Hutchison, who runs the biggest online marketplace for buying and selling website businesses.

In this episode, we are going to talk about: the ins and out on where should a beginner website Investors Start, how to do great due diligence, determining the returns from buying websites, and where his whole industry of buying online businesses is headed.

BOB Podcast EP 004: Mistakes We ALL Make When Buying Businesses

In this episode, Charley and I shared the absolute key to go away and talk about Mistakes We ALL Make When Buying Websites.

How can mistakes be destructive to us as investors? How important is cross referencing financials to ensure the solidity of the business? What GREAT questions you should prepare before speaking to the seller of the business? Why is it important not to sell ourselves into an investment which could set you back significantly? These questions will be answered in this episode, so sit back and listen before you start investing in websites.

BOB Podcast EP 003: Website Due Diligence Stories You Need To Know

In this episode, Charley and I are sharing a lot of golden nuggets as we are talking about Websites Due Diligence Stories You Need To Know. So if you guys are looking to go away and make money online, invest in anything, we talk about some very powerful stories where we almost lost a whole lot of money, hundreds of thousands of dollars, and some other stories where we’ve become very, very successful as well up into making the seven-figure mark.

As we deep dive down into the rabbit hole, you will hear the best investment I ever made and the best investment Charley ever made. How easy it can be to be blinded during website due diligence. What is the ratio of legit business sellers online from scammers to fudgers and even unconscious sellers? And what is our process of analyzing businesses?

Scroll to Top