.iz and Matt share to you the 3 tell-tale signs that a website is a great investment.

Introduction

Matt: Welcome everybody! This is Matt and Liz Raad, and what we want to talk to you today is about the three essential elements that make up a great website investment.

Liz: Yes. Because we’ve been having chat about the best website buys that we’ve ever made. We thought, what are the similarities between those website deals? What were the things that were common to our best ever website investments? And it might be a bit surprising to you because the first essential element that we realized is that all our best deals are not related to the price or the topic or the nature – anything like that. It’s actually relating to the seller. The person who is selling the website.

The Website Seller

Matt: Yes. And what were the ideal outcome or the ideal websites that we buy are of genuine sellers. Sure, we’re dealing with sellers all around the world. At the end of the day, it boils down to a relationship between people. And you’ve got to trust people that you are buying off. This is important with websites because you might need on going help with them. The best ones we’ve done are where sellers openly share with us everything they’ve done on the website, they’ll even share with us their outsource team, the techies or the writers and things and it just made the work so well.

Liz: Yes. Their affiliate accounts, the connections within the industry. So, this is what you are buying. When you are investing in websites, you aren’t just buying a bunch of codes, you’re actually buying a complete package of everything that’s needed to make money using the system that they’ve created. And that’s the other good thing about buying from these genuine sellers. Often, they’ll have some really unique ways of making money online. They’ll find these little beautiful tweaks that they’ve discovered and no one else knows and we get access to those instantly by buying basically all their intellectual property and all the experience they’ve had in building up that website.

So, one of the main things that we look for when we’re investing in a website, because remember, we’re doing this and we want this all to flow calmly and smoothly and these deals should be easy. So, the more genuine the seller, the better the deal flows and the better the deals are that we’ve found.

Potential For Growth

Matt: Now, the next thing that we look for and it flows on directly from genuine sellers is room for growth. Because if we get a genuine seller and they’ve ideally they’ve built the site themselves. And its their passion and they’ve put lots into it. Often, they’re really good websites investments that we’ve made are the ones where people don’t quite monetize it that well. Or they may be a bit tired of the website and they’ve put their heart and soul into it for a few years.

They’re probably tired of it and that’s why they’re selling. So, that’s a great reason for us to be buying in the first place. But then, we find that there is a very simple fix ups that we can do. So, with fresh eyes coming into the website, we can very quickly tidy up the website and that’s why we really love to buy really nice and simple websites.

Liz: And again, it’s very like property. So, when you invest in a property, you’re always looking for those worst houses on the best street. Houses that you can very quickly and easily add value to. And we’re using exactly the same strategy here online using our virtual real estate. So, we’re looking for these websites that have those simple fixes that we can do that websites grow very quickly and easily.

Increasing Cashflow

Now, the reason we do that is of course that we want to grow that website in value and in cashflow as quickly as possible. Then we can pay it down as quickly as possible. Because once we’ve paid that website off, our risk is basically reduced to zero. So, that’s what our goal is in website investment. And that’s the magic in being in this investment market where we’ve got incredibly high cashflows that allow us to be able to do that.

Matt: Yes. So, that’s point number 2. Room for growth but simple tweaks that we can make to the website to quickly increase its value. And that will lead us to the third point. Which is, because we do want to increase the value of the website not just for the cashflow. Because we love cashflow. But one where they’re going to sell the website. So, one of our other essential elements that we look for is, is this a website that reasonably easy to sell at some point down the track if we need the money?

Future Saleability

Liz: Another thing too that we’re looking for. Are there some really kind of cashed up buyers within that marketplace that would pay a heap more for this website that we would? So, the third thing that we are always looking for in a great deal is. Are there some good buyers in the marketplace that are going to be willing to pay us a really good sum of money when we’re ready to sell them?

Those are the three things that we’ve noticed in our best website deals that have been common to those deals. So, hopefully, you can take those three things and apply them in your own website investment strategy.

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