Frequently Asked Questions: Buyers

Why would I become a member and buy through Investors Club as opposed to other online business brokers?

Investors Club is the only private marketplace that works exclusively for the buyers. Our entire business model is based on years of experience actually doing the work of building, buying, improving and selling websites.

As such we have first-hand knowledge on how to do things, what to look for in a deal and how to avoid the most common pitfalls. Our due diligence reports will be packed with actionable and in-depth advice as opposed to the cookie-cutter reporting you get from the other brokers.

In addition, we don't take a cut from the sellers (after closing), so there's no incentive for us to inflate the prices in order to make a bigger commission. We're keeping it real and our valuations are objective and logical.

What kinds of sites will I be seeing for sale on Investors Club?

During the first couple of months (Jan-Apr 2020), we'll be focusing primarily on content sites (affiliate, display ads, lead generation) because that's what we do best. After that we'll slowly introduce other business models such as eCommerce, SaaS, productized services, etc.

How often will new sites be available for purchase?

We'll be listing new sites for sale weekly, every Wednesday at 9 AM ET.

I'm not experienced with buying online businesses, do you have any resources to help me get started?

Yes, of course. Please read these two in-depth articles:

https://alphainvestors.com/business/website-investing-guide/

https://alphainvestors.com/how-to/websites-for-sale/

If you're still having questions about the process after reading through those articles, send us an email to info@investors.club and we'll help you get started.

Do I have to sign an NDA to look at the sites?

No, you don't have to sign an NDA. However publicly sharing (social, forums, blogs/websites, etc.) our listings will result in us closing your account without a refund. We are a private and exclusive community and we need to make sure that our listings stay within the platform. That's the only way to protect both buyers and sellers.

Will the site sellers sign a no-compete agreement?

We don't force the sellers to sign a no-compete but you can most certainly ask. If signing a no-compete is the only way to get the deal done the seller will more often than not sign it.

How do you evaluate these sites? How's the price determined?

We have a very complex proprietary system for evaluating each site that comes to us. The final asking price is determined by many different factors such as site age, revenue, traffic, content, backlink quality, and monetization methods, etc. We take everything into consideration before we form a valuation.

Are the prices negotiable?

By default, yes. If we have one asking price on the listing and you offer less than that the seller can either reject, counter or accept your offer. There's always room for negotiation. However, once you put in an offer and the seller accepts we'll temporarily 'close' the listing until you fund the Escrow and complete the transaction/transition.

If you decide to hire us to handle the entire process for you (Assisted Purchase) all you need to do is send us your offer and we'll take care of the rest (except funding the Escrow, of course).

Do you or the sellers offer any kind of financing or structure any deals with earn backs?

We don't (currently) but you can discuss that with the seller directly. From our experience deals below $100K are usually cash-only while in the upper ranges the sellers are more open to discussion.

What kind of Due Diligence do you do on these sites?

We do an in-depth analysis of each website that comes to us. That includes personal verification (ID, domain ownership, affiliate/ad account ownership), technical (content, backlinks, traffic), SWOT, financial and SEO analysis. All these reports will be available for you to download.

Will I be able to see the Due Diligence reports and have access to the site's Google Analytics before I buy?

Yes, you will be able to see the entire Due Diligence report for each listing as soon as you become a member of Investors Club. Analytics access is not granted by default but it can be requested.

If I buy a site through you do you offer any service to maintain and grow the site for me?

Yes. We have years of experience in building, buying, growing and selling websites. We will put our services at your disposal as soon as you buy a website through the platform.

What does the actual buying process look like if I do it on my own?

It depends on how you conduct business, but here's an example:

  • After you find a listing that you like and you're ready to put in an offer you'll contact the seller directly (contact information will be available within the platform)
  • After the seller accepts your offer you'll agree on an Escrow service (we recommend Escrow.com) and draft an Asset Purchase Agreement. Then you'll fund the Escrow
  • Once the money lands in Escrow the seller will push the domain to your registrar and then you can start transferring the website to your hosting of choice (or the seller can do it for you - it depends on what you agreed on).
  • After everything gets transferred you'll add your affiliate IDs/Ad tracking code and start monitoring the traffic/revenue over the next week or so. You shouldn't touch/change anything on the site during the inspection period.
  • If everything checks out you'll release the money from Escrow and start working on growing your new website.

This is a simplified version of what usually happens when people buy/sell websites.

What does the actual buying process look like if I hire you to help me with your Assisted Purchase product?

With Assisted Purchase we'll take care of everything for you and on your behalf. Here's how it usually works:

  • Discovery call: we'll connect to talk about the business and lay out the next steps
  • Conference call: we'll connect you and the seller on an introductory call, then push mute and let you ask questions and get acquainted
  • Negotiation: we'll mediate negotiations and guide you through the process of getting a fair deal
  • Purchase: we'll draft the legal docs, provide no-fee Escrow and manage site transfer
  • Final inspection: we'll monitor performance (revenue, traffic, etc) for up to 14 days. If it’s all up to scratch the deal is done!
  • Growth: we can then run and help you grow your new business.

We'll take a lot of work out of your hands so you can focus on what matters you the most.

What sort of contracts or legal documents are involved?

Generally the only legal document that is absolutely necessary to buy/sell an online business is an Asset Purchase Agreement (APA). There's also a Letter of Intent (LOI) which is sometimes used for larger acquisitions ($300K+).

How does migration work after the sale?

If you end up using our Assisted Purchase service we will take care of everything for you. If you decide to do everything yourself the migration can either be done by you or by the seller. You'll need to negotiate this with the seller directly. We are always here to help in case you hit a road-block.

What kind of contact or support can I get with the seller after the sale?

Most sellers will provide at least 30 days of support (via email, Skype or phone). We'll do everything we can to answer the most common questions on the listing page.

How long do sites usually sit for sale on Investors Club?

It depends on the site and the asking price. Most of the sites below $300K in value stay on the platform for less than a month. Sub-$100K sites are usually sold within hours/days of us listing them.

Can I resell the same site later through Investors Club?

Yes, of course you can! That's going to be an incredibly easy and painless process for you. Plus, you'll get to keep 100% of the sales price ;)

If there's a problem or issue with a seller, can Investors Club help me deal with it?

Certainly. All you need to do is contact us via email or phone and we'll jump in and help you solve the problem.

If I want a specific kind of site based on a niche or budget and I don't see you have one that fits, can you help me find one to buy?

Yes, it's called a Deals Concierge service. We'll go out and find you an off-market site that fits your parameters. More details on this service will be available once you become a member.

Can I pause my subscription membership?

Unfortunately, not. We will be limiting the number of 'seats' available so we can't afford to have inactive buyers in the platform if there are hundreds of people waiting to get in.

Is it easy to cancel my membership and then come back in when I want to make another purchase?

Yes, it is easy and can be done from your profile page. However, keep in mind that once you cancel your membership you'll have to re-subscribe using the latest and actual monthly (or yearly) price.

With every new batch of people we let in the price will go up. You will be grandfathered in at your current pricing level but if you decide to cancel the subscription that perk is gone. Here's a practical example: You sign up during the launch for $97/month and decide to cancel your account after three months. Two months later you'd like to sign up again but at that time the monthly price is $297. You'll then have to sign up for $297/month if you'd like to regain access to the platform.