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.”
Website Links
Pro Guide to Buying Websites:
flippa.com/myresources
Further details on Pro Guide to Buying Websites:
flippa.com/blog/pro-website-buyers-guide/
About Flippa:
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