Buying An Online Business? Beware Of These 3 Mistakes!
In this day and age, everything has gone online, and this applies to purchasing businesses as well. When making the decision to buy an online business you must weigh all the options – it can be a costly venture! There are many pitfalls that can trap you, especially if you’ve never done it before.
This article is going to focus on three primary mistakes that buyers make when purchasing an online business, and how you can avoid them. Let’s get started.
1. Stop finding reasons to purchase an online business
Carlota Reyes, a marketing blogger at Paper Fellows and Boomessays tells us – “It’s only human nature to question your choices and find reasons to justify why you’ve made them, like buying new shoes or paying for a pricey meal at a restaurant, but buying an online business is very different. You should not be trying to find reasons to justify you purchasing it, if that’s the case, it’s probably not right for you”.
In other words, you should work by elimination. This means you should actually try to find reasons not to buy it and work backwards until you’re sure that there are no rabbit holes in sight. In essence, you’re ruling out all the things that could go wrong.
2. Using the wrong platform to buy
What does this mean? There are multiple websites and platforms where you can buy your online business, such as different e-commerce sites, websites such as Flippa, and mobile apps. These types of websites will have discounted deals that seem to be profitable, but be wary. As with Google Analytics, these sites don’t necessarily use a human verification process, but instead have automated vetting procedures. This system could deceive you by presenting a particular business venture as profitable when it may not be the case.
The solution is proper due diligence. You must do your research.Make sure the website is right for you. Confirm that the online business being sold is actually real and that their vetting practices utilize actual people. This is not an attack on the aforementioned sites – one of them could be right for you. However, it will certainly benefit you, either way, to validate documentation and avoid any unpleasant surprises.
3. Do your due diligence
Speaking of due diligence, it’s simply not enough to rely only on a website and its vetting process to ensure legitimacy. Why is this? Lena Roy, a business writer at State of writing and Lia Help explains- “Some websites have a vetting process that is sponsored by the same person that’s selling the business, which means even if it seems legitimate, if you fail to research deeper you may find that you’ve been deceived into buying a trustworthy online business that isn’t so trustworthy after all.”
This is known as Private Blog Network, and it’s important to be mindful about these. Google doesn’t appreciate it, and it’s a violation of their Webmaster Quality Guidelines. Once Google becomes aware of this scheme you will be penalized, your website will lose significant SEO rankings it may never recoup, and/or your links will be ignored by Google’s algorithm. This will essentially hide your website from the most trafficked Google search pages. This can severely impact the profitability of your newly purchased business and can definitely cause you to have regrets about making your investment.
Checking the metrics of different websites and using a document to compare that information is a good idea, and although it may seem time consuming, it’s worth making the effort.
Overall, the groundwork and investigation of any investment will be an eminently valuable and beneficial use of time. This diligence and perseverance become especially vital when considering an online business investment. The investment outcomes may seem very enticing at first, but learn from the mistakes of others and stay on top of cross-checking facts and figures.
Don’t be complacent about the metrics that you’re given by any website – and most importantly be sure to use the right platform for you. If you follow these steps, you’ll be prepared to avoid the pitfalls and start profiting immediately from your online business investment!
Elizabeth Hines writes about the latest tech and marketing trends, innovations and strategies. She also writes for online magazines and blogs, such as OX Essays, and others. She is a digital marketer and content writer at UK Writings and Write my essay.
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