MELBOURNE, Australia--(BUSINESS WIRE)--The latest quarterly Website Buyer Survey conducted by the Flippa website marketplace indicates that most website acquisitions are not done in line with industry best practice – especially with regards to investment due diligence.
Flippa CEO Dave Slutzkin commented that “the research indicates that 50% of website buyers spend less than one hour verifying seller claims to key metrics such as revenue and traffic prior to purchase. Only 13% of website buyers actually discussed the website with the seller in person or over the phone.”
The research furthermore showed fewer than 5% of website buyers did a run through of the seller’s analytics or revenue systems – even fewer went so far as to review a seller’s bank statements to validate revenue claims.
As the world’s largest marketplace for buying and selling websites, Flippa arguably represents the bulk of website acquisitions in a given week.
Slutzkin said “We’re seeing the findings of this research being reflected at the top end of town – there have been a raft of tech stories already this year where even venture capital firms have fallen short on website due diligence best practice.”
To address this gap, Flippa have developed a Pro Guide to Buying Websites.
Available for free to Flippa users, the guide dedicates an entire chapter to validating seller claims - from site traffic and revenue through to content quality.
In discussing the Pro Guide to Buying Websites, Slutzkin explains “Websites continue to be a popular asset class due to their competitive pricing and strong performance compared to more traditional investments such as real-estate and the stockmarket. Hopefully resources such as the Pro Website Buying Guide mean investors are more empowered to buy websites with reduced risk.”
Pro Guide to Buying Websites:
Further details on Pro Guide to Buying Websites:
Flippa is the #1 marketplace for buying and selling websites. Buyers and sellers trade around $3 million worth of websites and domains through the Flippa marketplace each month. Over 150,000 bids are placed on Flippa website/domain auctions each year across nearly 20,000 successful auctions and private sales. The most notable of these include Mark Zuckerberg’s Facemash.com as well as Retweet.com and s9.com.
More information: Flippa.com/about