There are many entrepreneurs who buy established websites to boost there business. It could be for starting a new venture or for purpose of selling the website or to leverage the trafic that already goes to that website.
Before you purchase any website you need to identify its relevance for your purpose, its profitability and authenticity.
There are few questions that need to be answered before you start buying website. At the least following answers should be soughtNiche
Is niche of the website suitable for you. Does it fit your scheme of things. To be useful the niche has to be either similar or relevant or complimentary to your own business. If you plan to flip you need to see the demand for the niche.
It is better to buy websites in the related or hot niches. The might cost more but you are sure of making profits.
Is the site making profit? The price of the site can vary with the profits it makes. If the site is not profitable a lower price can be negotiated. You can ask for website stats and take an idea of traffic.
Monetization strategies of the website should be looked into and concluded if site is making an efficient use or not.
This information can help you to draw your own goals for the site.
Work and Maintenence
How much input was put in the wrok and maintence of the site. Was it outsourced or owner was doing it himself. If too muich work is involved the value of the website decreases.
Mission or Purpose
Does the website has any purpose or mission. Does it inspire the readers or helps them in some way or the sole motive of the website was to attract the visitors and make some money. if the site was aimed just at money, it could mean a lot of work to change the website impression.
If the site was out just out of hobby, it need to be seen whether it has been developed to acquire any potential or not.
Can You Leverage The Site
This would give you the final answer to whether to consider the purchase or defer it. Obviously buying a website that cannot be leveraged is a dead investment.
What other things do you take care of when buying a website?