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Thread: Fraud Tips for Buying Web Sites

  1. #1
    Will.Spencer's Avatar
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    Fraud Tips for Buying Web Sites

    Revenue

    When valuing a web site, revenue is king.

    The standard method for valuing web sites is to take the monthly revenue and multiply it by another number to determine a fair value for the web site.

    The number is called the multiplier. Sellers like multipliers of 36. Buyers like multipliers of 3. Most deals end up somewhere between those two extremes.

    Fraud Tip: Be sure to look at revenue numbers over a year's time. Some sellers will have one good month or one good quarter and try to overprice their web sites based upon that. Don't buy a store thinking that every month is December.

    PageRank

    A web site with a PR6 main page is worth more than a web site with a PR5 home page.

    Fraud Tip: PageRank is easy to spoof by using a 301 Redirect, waiting for a Google PR update, taking down the 301 Redirect, and then selling the web site before the next Google PR update. Be sure to examine the backlinks to a web site to ensure that it deserves its PageRank.

    Fraud Tip: Some sellers will sell PR0 domains and say "The site doesn't have PR yet." The truth is that these sites have often been banned by Google. You are better off to wait for the next Google PR update.

    Fraud Tip: A seller may have a lot of their own links pointed to a domain, artificially inflating the PR. After the domain sale is completed, the seller will take down their links to the domain. Be sure to examine the backlinks to a web site to ensure that they are not all coming from the sellers other web sites.

    Page Count

    A web site with 5,000 pages is worth more than a web site with only 5 pages.

    Fraud Tip: Don't listen to how many pages a seller says the web site has. Check with the search engines. Web pages that are not indexed by the search engine do not have much value. If the seller has web pages that aren't being indexed, there may be hidden problems with the web site.

    Domain Name

    A web site with a great domain name is worth more than a web site without one.

    Fraud Tip: Make sure that the domain name does not have potential trademark violations. Don't buy "buying-and-selling-on-ebay.net" and wait for eBay to sue you. They will.

    Copyright Compliance

    A web site which is built with copyrighted material can cost you a lot more than what you pay for it.

    Fraud Tip: Check the text of the website for originality using Copyscape.

    Fraud Tip: Check the web site graphics using Google Image Search.

    Fraud Tip: Lyrics and Ringtones are copyrighted material. Don't buy this type of site unless you know this material was used with permission.

    Originality

    Some webmasters build a web site, make a dozen clones of the web site, and then sell off each clone as an original web site.

    The clone web sites are then penalized by Google's duplicate content filter.

    In addition, if there are a dozen web sites offering substantially the same content, those web sites will have to divide the same limited number of web visitors between them.

    Fraud Tip: Check the originality of the website for originality using Copyscape.

    AdSense

    Some webmasters sell their websites after they have been banned by AdSense.

    Fraud Tip: If you intend to use AdSense on a web site, examine the web site to ensure that it is compliant with the Google AdSense ToS and Program Policies.

    Tip: Before placing AdSense on any new domain that you purchase, write adsense-support@google.com and notify them that you have purchased a used domain. This will prevent your AdSense account from accidentally becoming confused with that of an AdSense cheat.
    Submit Your Webmaster Related Sites to the NB Directory
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    rome9t9's Avatar
    rome9t9 is offline No Longer Loves SEO
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    More tips:

    Ask the seller to establish the ownership of the site by putting a small snippet like "For sale on netbuilders"

    in case of scripts, Ask the seller if he's the owner of the script. if not then ask if he's having rights to sell it. Then, make google search for the script name and see if it has resell rights attached to it..But its not enough..stay on your toes if the script is of $100 and the reseller is selling it for $10.

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    Arunkumar (15 September, 2009), bogart (29 December, 2010), Desan (29 March, 2009), Will.Spencer (1 April, 2009)

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    Felt like adding one more..

    In case one is selling a domain then you can ask him to provide a screenshot of his domain account with the domain in it..

    So, if its godaddy then he can go and take a screenshot in the "My domains" section which will have the domain name in it..
    Last edited by rome9t9; 29 March, 2009 at 16:49 PM.

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    Szise is offline Net Builder
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    Very good tips, in general i avoid buying websites.
    ...

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    Desan is offline Moderator
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    Quote Originally Posted by Szise View Post
    Very good tips, in general i avoid buying websites.

    Hmmm. Why is that? Have you been scammed once?

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    intelli is offline Experienced Net Builder
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    Can we buy sites of the form :-
    If there is a site called movies.com - then can we register a site called movies.net?

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    Desan is offline Moderator
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    Quote Originally Posted by intelli View Post
    Can we buy sites of the form :-
    If there is a site called movies.com - then can we register a site called movies.net?
    Yes. As long as the domain doesn't violate any trademarks.
    For example: You cannot register ebay.net.

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    bogart is offline Super Moderator
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    Another trick to watch out for is fake adsense screen shots or those made on adsense screenshot generators.

  12. #9
    GameOver's Avatar
    GameOver is offline Net Builder
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    Quote Originally Posted by bogart View Post
    Another trick to watch out for is fake adsense screen shots or those made on adsense screenshot generators.
    they are quite easy to make on paint also

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    Quote Originally Posted by bogart View Post
    Another trick to watch out for is fake adsense screen shots or those made on adsense screenshot generators.
    What are you saying! I didn't even know such thing existed!

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