If you are reading this blog post, I assume that you are looking for the perfect way to establish an online business without actually going through its initial “struggle” phase, which is perfectly fine because buying an already established business relieves you of spending uncountable hours/days/months, man-power and resources on it. One big payment is done and you have already got yourself a smooth business and you can hit the ground running.
On the other hand, if you are thinking of starting a new business, you also have to start thinking of every aspect of starting it – you need to think about what product/service you will be selling, think about the content that needs to be posted in it, find a good domain name, create strategies to attract a lot of traffic to your new website (which most bloggers admit is the toughest challenge they face), create contacts, loyal audiences and so much more.
Any entrepreneur (like yourself) knows that the hardest phase for any business to come into being is its initial phase where it has to try and work out so many strategies time-wise, effort-wise and resource-wise that it is almost next to impossible to become profitable within a short time.
From the above shown image (google credits), you would know that around 70% people have only 1 blog/online business to rely on, and about 60% of the bloggers have at least once in their life, abandoned their online business!
Why? Maybe they didn’t have enough resources to suffice the needs of their overgrowing blog or they just weren’t creative or experienced enough to get past the initial struggle phase. Whatever the reason, the piece of knowledge to take away from this survey is that starting all the way from scratch not only drains all of your energy and time, but at the same time, also has a 60% chance of failing.
We all know the successful side of an online businesses, but that is the side that comes to light only and only after it has passed over its struggle phase. Before jumping over it, who knew there were more than 50% chances that it will end up in trash!
Exactly! If you go the long, hard way, you can end up dead on your road of ambition and enthusiasm. But what if you buy a second hand car from someone who wants to sell their car and cut your time spent and reach your destination early?
And all that can be done with a simple solution: ‘Buy an Online Business’. With this, you just need to look for an online business for sale, strike a deal, pay for it and you now have a properly established business to your name which has surpassed its “struggle” phase, already has a loyal audience, an email-list, a brand name to it, a properly defined niche and probably has some income being generated. All you would have to do is run the online business.
That being said, let’s look at the 4 ways in which you can buy an online business.
1. Direct Purchase
Suppose you come across a website or an online business that you think is profitable, attractive and aligns with your niche. How wonderful it would be if it were yours? If you were the owner of this great online business, then with your new and creative ideas, you can take it to another level of profitability and success.
This is exactly what direct purchase is. You look for a website (preferably with a domain name you like, an amount of traffic and loyal audiences you can work for and a niche which aligns with your goals), contact its owner, talk about their online business’s total valuation, strike a deal and change its owner to your own self.
Although it isn’t as simple as it sounds, it is worth it.
A great advantage of this method is that a lot less compromises are to be made in this sort of a deal. Why? Because you are approaching the owner of only those businesses which you actually like and feel a real connection to.
Another great thing about this way is that there is clarity. You know what you want and you go get it. any other way, you get too many options and that increases your chances of getting confused, and that can end up in wrong decisions. Here, you want a particular thing and you work towards it with no distractions to confuse you.
A downside to this way would be that you might have to pay a little extra. Why? Because the other person knows that you are looking for a particular business without a broker and can easily charge you extra for it; pretty much like anyone would do if they were the owner of a limited edition accessory.
Another disadvantage for you can be that valuating that business on your own without an experienced broker might be hard, meaning you can be easily duped. But this is a problem with an easy solution. All you have to do is hire a broker or anyone experienced in this field (someone like us) and let them handle it.
Because you are reading this, we can safely assume either you are a beginner with a lot of capital or an already established entrepreneur looking for something extra beside your main gig. If you are the former one and are buying a business, then you are probably busy setting up the content teams, marketing teams, IT teams and so many more groups that you will lose your mind organizing before you even start to understand the business; and if you are the latter one- an already established businessman/woman, then again, we think it is safe to assume that you are busy as the Sun, burning all day doing your job. No matter which one of the two are you, the point is you just won’t have enough time to buy a business directly, especially if most of them are not even willing to sell it! “Time is money!” and who knows it better than you?
It is no brainer that direct purchase requires
2. Online Marketplace
You must have had at least one experience with online shopping. Well, this is exactly like this, but instead of tangible products, online businesses are bought and sold here.
There are a lot of people who wish to sell their online business and a lot of customers who are willing to buy them. All you have to do is go on one of these websites, look through all the options available, evaluate them according to your needs, contact the owner, strike a deal and become the new owner.
It is one of the most obvious ways to go and buy an online business for yourself. It is exactly like shopping online. You make an account, put in filters according to your desires, look at the available options, try to know more about the business (via email or in person), strike a deal and buy the product. There are also some laws which protect you from frauds in this sort of method because online marketplaces too have a reputation to save.
An advantage that comes with going along with online marketplaces is that you don’t have to be an expert with valuating the business or knowing how to determine the credibility of the business, because this is already done for you by these marketplaces via experienced brokers (again, someone like us).
When the valuation is done and credibility checked, all you have to do is select the niche you want to go for and look for the website that will suit your needs. No more struggles with technicians.
The only disadvantage that one might see in here is the time you have to invest in looking for the perfect business, which is totally worth the gain.
If you are considering going for this option, the
It is the ultimate, most reliable place to find online business, website, apps and even domains for sale. It has a great function to filter out businesses according to your needs. There are businesses on there that sell for under $1000! So, if you are a new entrepreneur looking for a smaller investment, Flippa is a good fit for you. They also offer an escrow service and valuation tools to help you complete the transaction. This is done in collaboration with experts in the industry (P.S. we can tell you this first hand since we are one of the brokerage firms who collaborate with Flippa for valuation and credibility checking).
- Shopify Exchange
As the name suggests, this platform heavily relies on businesses based on Shopify. As with Flippa, you can filter out businesses according to your needs. It too has a valuation tool you can use to evaluate the value of your potential purchase.
3. Auction Sites
The name itself suggests that a lot of potential buyers come together to bid on the businesses, the highest bidder goes home with their purchase. This is a great opportunity for the sellers to attract more eyes and get better and profitable deals out of it, but it poses some risks for the buyers, such as yourself.
Auction sites are very similar to online marketplaces but just as unpredictable. You can end up with the best deal of the century or the worst purchase in the history. Here, the valuation might not be as formal and necessary as that in the marketplace which of course, increases the risk for the buyer. You cannot be sure of what you are buying. There is always a chance that the information you are receiving was misinterpreted at some stage.
It is not a good option to opt if you are not familiar with this field, or if you are a fresher in business dealings. The potential of your purchase is harder to determine even for some experts and can be seen as no less than gambling.
Marketplaces like Flippa hold auctions and these can be as cheap as $1. Yes, you can buy an online business for even under a buck. But then again, the question comes- “Will it be worth it?”
4. Website Brokers
Now, buying an online business shouldn’t be something hard based on the information provided above, right? You go to these online sites, auction and marketplaces and buy what you need as per your goals, right?
Sound perfect, doesn’t it?
Yes, there are complete steps in themselves but they are not perfect. They are efficient but not satisfactory. What are the chances that the site you went through is perfect for you and your dream goals? What are the chances that the price you are paying for it is the best? What are the chances that you are looking at all the aspects before paying for it?
Answer is “very low”. The chances of landing on these is very low.
If you don’t have any expert backing you up, you are missing out on so many better deals for your dream business, you are missing out on some aspects of your potential businesses, you are missing out on time and energy-efficient methods, you are missing out a relaxed and smooth process of buying a business.
A website broker’s job is to list down your needs based on your goals, present a list of all potential businesses and sellers via the vast contacts they gathered through experience and expertise in the field, draft ad present orders, assist in negotiation with the best offers, look after the paper work and provide after-sales support.
All you have to do in the entire process is hire a broker (someone like us), sit back, talk and choose and let the broker do their job.
The advantages of going this method are many. Not only do you get experts who use their experience to evaluate business in a manner designed specifically to suit your needs, you also get access to a very long list of potential sellers (across the world) ready to sell their businesses with the best offers in hand. With their broker’s network which is definitely larger than your own, it is also quicker to find the perfect deal.
- Dotexit – Planning your Exit Strategy
With our global presence, deep sector knowledge,
With a fresh team with each member having an experience of minimum 8 years in the industry and an international presence to look after all your interests and all the potential match for your kind of business, the future with DotExit looks very promising!
- Empire Flippers
Empire Flippers can be thought of as the eBay of buying and selling websites and other online businesses, but not just any brand new website, but those that have aged, and in many cases generating revenue. In order to list your website with Empire Flippers, who according to several online sources is arguably the largest online marketplace, you need to pay a $279 listing.
- FE International Review
With over 5 years of website brokerage experience FE International has emerged as the pre-eminent advisor within the industry. It has an established network of pre-qualified international buyers with an 70% chance of the sites listed being sold within a span of 3 months.
If you want to walk down this road, you have many paths to reach that destination, each having its own goods and bads. It is for you to decide.
If you still have any queries which you think is stopping you from buying your dream business, you can always contact us and get free guidance from our experts in the field, know how we and the industry works, and make a decision for yourself.