Frequently Asked Questions: Buyers
Why would I become a member and buy through Investors Club instead of another online business broker?
Investors Club is the only private marketplace that works exclusively on behalf of its buyers. Our entire business model is based on years of experience actually doing the work of building, buying, improving, and selling websites.
Because of this, we have first-hand knowledge on how best to approach things, what to look for in a deal and how to avoid the most common pitfalls. Our due diligence reports are packed with actionable and in-depth advice as opposed to the cookie-cutter reporting you see from other brokers.
What kinds of sites will I see for sale on Investors Club?
We sell content sites (affiliate, display ads, lead generation) and e-commerce sites. In the future, we plan to add SaaS and several other business models to our inventory.
How often will new sites be available for purchase?
Sites are published live on the marketplace as soon as all financial verifications are complete, and listing agreements are signed.
I'm not experienced with buying online businesses. What resources do you offer to help me get started?
We try to make it as easy for you as possible, so start by reading these two in-depth articles:
https://alphainvestors.com/business/website-investing-guide/
https://alphainvestors.com/how-to/websites-for-sale/
If you still have questions after reading the articles, send us an email at [email protected] We're happy to help you get started.
What if I want to be a “hands-off” investor? Is that a possibility with Investors Club?
Yes! We offer a website operator service that is available through our parent company, Buzz Logic.
We offer a perfectly seamless transaction for you - from finding a site, organizing the purchase, and operating and growing your asset for you. Please see the link below for more information or send an email to [email protected]
Do I need to sign an NDA to look at the sites?
No, you don't have to sign an NDA.
But 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 so we need to ensure that our listings stay within the platform. That's the only way to protect both our buyers and sellers.
Does the site seller sign a non-compete agreement?
We don't force sellers to sign non-compete agreements, but there's no reason you cannot ask. If signing a non-compete is the only way to get the deal done, the seller will usually sign one. Our Asset Purchase Agreement has an option to include our standardized non-compete agreement, if applicable.
How do you evaluate these sites? How is the price determined?
We have a very complex proprietary system for evaluating every site that is presented to us. The final asking price is determined by numerous factors. These include site age, revenue, traffic, content, backlink quality, market demand, and monetization methods, etc. We take everything into consideration before we form a valuation. We firmly believe that our process determines the fairest and most objective valuations in the industry.
We also take into account that all revenue generated is on an accrual basis. For example, if a seller’s payment terms with an affiliate network is Net 30 days, and he/she achieved $1,000 in commission during the month of May, that will be recorded as earnings for the month of May despite the fact that he/she will receive it at the end of June
We also do not include discretionary expenses such as content creation or link building. This is because this cost can vary from one owner to another.
Are the prices negotiable?
By default, yes. If we have one asking price on the listing and you offer less than that price, the seller can either reject, counter or accept your offer. There's always room for negotiation. 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 seller offer financing or structure any deals with earn-backs?
We don't, (currently) but you may discuss that directly with the seller. In 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 complete 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), SEO, financial, risk and growth analysis. Premium members have access to all these reports as free downloads.
Will I have access to the Due Diligence reports and the site's Google Analytics before I buy?
Our complete set of Due Diligence reports is always available for Premium members. Each listing already contains traffic data pulled from Google Analytic’s API. Analytics access is not granted to individual buyers by default, but it may be requested.
How does the buying process work?
Investors Club now offers a full-scale migration for every site that’s purchased through our platform. This comes at no additional charge. We will draft the legal agreements, move the site, switch the affiliate links, migrate all of the accounts for you, and everything else you need. You will use our internal escrow service with no fees, and we will perform the monitoring during the inspection period. We will take care of it all!
Can I buy just a percentage of a site listed on Investors Club if I agree on that with the seller?
No, partial or fractional sales are not allowed. Only a complete ownership transfer of the sites listed on our platform will be possible. You can’t make any partnership deals or buy just a percentage of a site
What sort of contracts or legal documents are required?
Generally, the only legal document that is absolutely necessary to buy/sell an online business is an Asset Purchase Agreement (APA). Our legal team has created a great APA that we draft for every purchase made through Investors Club.
What kind of contact or support do I receive from the seller after purchase?
Most sellers provide at least 30 days of support (via email, Skype, or phone). The terms are agreed to in the Asset Purchase Agreement. We'll do everything we can to answer the most common questions on the listing page.
How long do sites usually remain for sale on Investors Club?
It depends on the site and the asking price. We make no guarantees because there are so many variables, but 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 listing.
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.
If there's a problem or issue with a seller, will 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 one that fits, will you help me find one?
Yes, it's called our Deals Concierge service. We'll go out and find you an off-market site that fits your parameters. More details on this service can be found here.
Can I pause my subscription membership?
Unfortunately, not. We will be limiting the number of 'seats' available and we can't have inactive buyers on 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. But keep in mind that once you cancel your membership, you'll have to re-subscribe using the latest monthly (or yearly) price.
Why do I need to provide proof of funds to be an approved buyer?
Part of our ethos is to ensure high marketplace integrity. With that in mind, vetting buyers by verifying proof of funds that are ready to deploy filters out the time wasters or tyre kickers and copycats. It gives our sellers confidence and is the reason why so many of them trust Investors Club.
How long does it take to approve my application as a buyer?
We usually approve buyers within 1 working day from when proof of funds are submitted
What access do approved buyers get on Investors Club?
Typically, if you're an approved buyer, and you don't have a premium account, you will have access to the following listing information:
- Basic listing details free forever (URL, revenue, asking price, contact the seller, make offers)
- Full access to our cost-saving offerings such as no-fee escrow, done-for-you legal docs, transfer, inspection etc.
- Access to listings 5+ days old
- No-fee escrow with fast turnaround
- In-app chat with sellers
Do you offer free trials or a discount of the premium membership?
Unfortunately, we do not provide free trials. We may from time-to-time offer a promotion to upgrade for a discount. But we do this very rarely.
I bought a site from Investors Club, can I get a free premium account?
If you buy a site for more than $100,000, and if we think you’re likely to buy more sites with us, you can apply for a free premium membership. Simply contact customer support for more information.