website to buy cash flowing websites
- Thread starter cubical
- Start date
Jordan
Member
- Joined
- Sep 22, 2007
- Messages
- 4,035
Few things to know:
1) Websites aren't perpetuities - They die eventually. It's a fact of life. Some of the money coming out of a website isn't its true earnings. It's capex because that website does have a short-life.
2) It takes work - There's no such thing as a business that runs itself selling for 1-2x annual income. You're buying a job.
3) Sellers have a huge advantage - There's a reason people are selling a site. No, it's not because they're bored with it, they want to start a new project, or because they need funding (who sells a cash flowing asset at 1x annual income when they need funding!)
It's not a business for the faint of heart or the time-strapped investor.
1) Websites aren't perpetuities - They die eventually. It's a fact of life. Some of the money coming out of a website isn't its true earnings. It's capex because that website does have a short-life.
2) It takes work - There's no such thing as a business that runs itself selling for 1-2x annual income. You're buying a job.
3) Sellers have a huge advantage - There's a reason people are selling a site. No, it's not because they're bored with it, they want to start a new project, or because they need funding (who sells a cash flowing asset at 1x annual income when they need funding!)
It's not a business for the faint of heart or the time-strapped investor.
