Experience buying an online business/website?

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Topic Author
huzaing
Posts: 186
Joined: Mon May 03, 2021 2:59 pm

Experience buying an online business/website?

Post by huzaing »

Hi members,

I have two questions, please:

1. Have any of you bought and are running any small online business/store/website from:

Flippa
Empire flippers
Shopify exchange (exchangemarketplace.com)

By small, I mean monthly profits in 1-3 K range. Can you please share your experience? Has it been viable on an ongoing basis?

2. Is there another forum more focused on this topic that you can recommend?

Would appreciate any comments and experiences. Thank you!
JBTX
Posts: 8688
Joined: Wed Jul 26, 2017 12:46 pm

Re: Experience buying an online business/website?

Post by JBTX »

You may try reddit.

https://www.reddit.com/r/Flippa/

I have no experience with that forum or this subject. My only take is if they are selling businesses online that probably means there is more money in selling you the business than in operating the actual business.
123
Posts: 7850
Joined: Fri Oct 12, 2012 3:55 pm

Re: Experience buying an online business/website?

Post by 123 »

JBTX wrote: Sun Oct 10, 2021 6:46 pm ...My only take is if they are selling businesses online that probably means there is more money in selling you the business than in operating the actual business.
+1 If they sell you this type of business what prevents them (or someone else) from selling thousands of competing businesses that diminish your potential success.
The closest helping hand is at the end of your own arm.
JBTX
Posts: 8688
Joined: Wed Jul 26, 2017 12:46 pm

Re: Experience buying an online business/website?

Post by JBTX »

123 wrote: Sun Oct 10, 2021 9:01 pm
JBTX wrote: Sun Oct 10, 2021 6:46 pm ...My only take is if they are selling businesses online that probably means there is more money in selling you the business than in operating the actual business.
+1 If they sell you this type of business what prevents them (or someone else) from selling thousands of competing businesses that diminish your potential success.
It's like these investment gurus who supposedly know what stocks to pick or these AM radio chumps who say they get 90% correct on sports betting. If they really could/did, why waste time selling advice? They could be insanely rich if their methods truly worked.
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Sandtrap
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Location: Hawaii No Ka Oi , N. Arizona

Re: Experience buying an online business/website?

Post by Sandtrap »

huzaing wrote: Sun Oct 10, 2021 4:58 pm Hi members,

I have two questions, please:

1. Have any of you bought and are running any small online business/store/website from:

Flippa
Empire flippers
Shopify exchange (exchangemarketplace.com)

By small, I mean monthly profits in 1-3 K range. Can you please share your experience? Has it been viable on an ongoing basis?

2. Is there another forum more focused on this topic that you can recommend?

Would appreciate any comments and experiences. Thank you!
1. Yes. Multiple. (But, starting from scratch and then website building, etc. Not premade).
2. Unknown. Suspect that many will be an opportunity for "easy pickings" by website business marketers/sales.

AFAIK: the best results can be had by starting one's own business, then building your own website and online presence (learning curve) and so forth.

What are your goals?
Easy money on the side?

What is your product?

Do you have a business plan?
(even if you buy a business, you need a business plan).

j :D
Wiki Bogleheads Wiki: Everything You Need to Know
Topic Author
huzaing
Posts: 186
Joined: Mon May 03, 2021 2:59 pm

Re: Experience buying an online business/website?

Post by huzaing »

JBTX wrote: Sun Oct 10, 2021 6:46 pm You may try reddit.

https://www.reddit.com/r/Flippa/

I have no experience with that forum or this subject. My only take is if they are selling businesses online that probably means there is more money in selling you the business than in operating the actual business.
123 wrote: Sun Oct 10, 2021 9:01 pm
JBTX wrote: Sun Oct 10, 2021 6:46 pm ...My only take is if they are selling businesses online that probably means there is more money in selling you the business than in operating the actual business.
+1 If they sell you this type of business what prevents them (or someone else) from selling thousands of competing businesses that diminish your potential success.
Hi,

It's a new area for me, so I'm not 100% sure, but I don't think it's one person selling websites.
I think it's like people sell their physical businesses, so similarly some people sell their websites, blogs, online businesses/stores, etc.
Mike Scott
Posts: 1991
Joined: Fri Jul 19, 2013 2:45 pm

Re: Experience buying an online business/website?

Post by Mike Scott »

What's the end goal?

If I were interested in starting a small business my expectations would be much higher than this for payback and I would want to build my own. A comparison to keep in mind is that working about 15 hours per week at my local McDonalds would get you into the same income range you mention without the risk, hassles and expense of running a small business.

My personal approach is take advantage of opportunities I have to get more money for what I already do and invest the additional money into stock index funds outside retirement accounts. Other than the extra time spent doing what I do anyway (a few hours per week), it's pretty passive.
exodusNH
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Joined: Wed Jan 06, 2021 8:21 pm

Re: Experience buying an online business/website?

Post by exodusNH »

huzaing wrote: Wed Oct 13, 2021 12:43 pm
JBTX wrote: Sun Oct 10, 2021 6:46 pm You may try reddit.

https://www.reddit.com/r/Flippa/

I have no experience with that forum or this subject. My only take is if they are selling businesses online that probably means there is more money in selling you the business than in operating the actual business.
123 wrote: Sun Oct 10, 2021 9:01 pm
JBTX wrote: Sun Oct 10, 2021 6:46 pm ...My only take is if they are selling businesses online that probably means there is more money in selling you the business than in operating the actual business.
+1 If they sell you this type of business what prevents them (or someone else) from selling thousands of competing businesses that diminish your potential success.
Hi,

It's a new area for me, so I'm not 100% sure, but I don't think it's one person selling websites.
I think it's like people sell their physical businesses, so similarly some people sell their websites, blogs, online businesses/stores, etc.
What are you trying to accomplish with this purchase?

If you buy a blog, who's going to create the content?

If it's a website, who's going to maintain it and work to keep it relevant in google results?

What's to stop the seller from immediately creating a duplicate of what was sold to you? They have all the customer data and can market directly to them to get them to use their "new" widget instead of the one they sold off to you.
Topic Author
huzaing
Posts: 186
Joined: Mon May 03, 2021 2:59 pm

Re: Experience buying an online business/website?

Post by huzaing »

Sandtrap wrote: Mon Oct 11, 2021 7:59 am
AFAIK: the best results can be had by starting one's own business, then building your own website and online presence (learning curve) and so forth.

What are your goals?
Easy money on the side?

What is your product?

Do you have a business plan?
(even if you buy a business, you need a business plan).
Mike Scott wrote: Wed Oct 13, 2021 1:01 pm What's the end goal?
A comparison to keep in mind is that working about 15 hours per week at my local McDonalds would get you into the same income range you mention without the risk, hassles and expense of running a small business.
exodusNH wrote: Wed Oct 13, 2021 2:22 pm
What are you trying to accomplish with this purchase?
The goal is 1-3K in semi-passive side income.
I was thinking like Shopify stores. Where you can have an online storefront, and sell products from China, and you are not carrying any inventory.
From what I read, it's not a full-time commitment in terms of time.
(In some other cases, I think there's a 3rd party warehouse involved for inventory - but I think that would be a more involved and costly operation).
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Sandtrap
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Location: Hawaii No Ka Oi , N. Arizona

Re: Experience buying an online business/website?

Post by Sandtrap »

huzaing wrote: Wed Oct 13, 2021 2:59 pm
Sandtrap wrote: Mon Oct 11, 2021 7:59 am
AFAIK: the best results can be had by starting one's own business, then building your own website and online presence (learning curve) and so forth.

What are your goals?
Easy money on the side?

What is your product?

Do you have a business plan?
(even if you buy a business, you need a business plan).
Mike Scott wrote: Wed Oct 13, 2021 1:01 pm What's the end goal?
A comparison to keep in mind is that working about 15 hours per week at my local McDonalds would get you into the same income range you mention without the risk, hassles and expense of running a small business.
exodusNH wrote: Wed Oct 13, 2021 2:22 pm
What are you trying to accomplish with this purchase?
The goal is 1-3K in semi-passive side income.
I was thinking like Shopify stores. Where you can have an online storefront, and sell products from China, and you are not carrying any inventory.
From what I read, it's not a full-time commitment in terms of time.
(In some other cases, I think there's a 3rd party warehouse involved for inventory - but I think that would be a more involved and costly operation).
Everyone wants to do this.
Easy money.
There is a ratio of your time and money vs per dollar return. You have to do the research and calculate the actual net after tax return on your investment for Shopify, etc. Not what is the selling spiel to you or 1 in a zillion but actual real on average.
Compare to putting your money in VTSAX.
Compare to part time hours put in in an area of your existing skill sets.
See?
Have you done web design and E Commerce before?
Do you have any unique skillsets or area of knowledge that you can segue this way?
j🌺
Wiki Bogleheads Wiki: Everything You Need to Know
exodusNH
Posts: 985
Joined: Wed Jan 06, 2021 8:21 pm

Re: Experience buying an online business/website?

Post by exodusNH »

huzaing wrote: Wed Oct 13, 2021 2:59 pm
Sandtrap wrote: Mon Oct 11, 2021 7:59 am
AFAIK: the best results can be had by starting one's own business, then building your own website and online presence (learning curve) and so forth.

What are your goals?
Easy money on the side?

What is your product?

Do you have a business plan?
(even if you buy a business, you need a business plan).
Mike Scott wrote: Wed Oct 13, 2021 1:01 pm What's the end goal?
A comparison to keep in mind is that working about 15 hours per week at my local McDonalds would get you into the same income range you mention without the risk, hassles and expense of running a small business.
exodusNH wrote: Wed Oct 13, 2021 2:22 pm
What are you trying to accomplish with this purchase?
The goal is 1-3K in semi-passive side income.
I was thinking like Shopify stores. Where you can have an online storefront, and sell products from China, and you are not carrying any inventory.
From what I read, it's not a full-time commitment in terms of time.
(In some other cases, I think there's a 3rd party warehouse involved for inventory - but I think that would be a more involved and costly operation).
This will almost certainly not work.

Do you know anything about running a website? Do you know how to deal with the import process? How will you source new suppliers when the current one inevitably disappears? How will you market this site? What kind of budget are you expecting for Google AdWords? Who will maintain those ads and adjust as necessary? Who will be your merchant account point of contact for dispute resolution? Who's going to handle customer service?

Stop watching the "passive income" videos on YouTube. If those people really made all that money, they'd be relaxing on a beach somewhere, not producing videos and gaming YouTube's ranking algorithm.

Focus on saving and investing in low-cost index funds at an appropriate asset allocation.
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