Buying Web-Based Businesses
Posted on August 13, 2007
Filed Under Internet Biz
In my quest for retirement, I recently looked into buying an e-business that sells services related to search engine optimization (SEO). My research into web-based businesses has been interesting to say the least. As someone with a background in finance, I found it surprising that these businesses are commonly sold for the equivalent of one-year’s net income. In traditional businesses, it is often many multiples of one-year’s net income. Seems like a cheap way to buy cash flow.
The business I wanted was purported to generate $80K in revenues against $30K in expenses, for 10 hours of work per month by the owner. The asking price was $60K. A few days after verbally accepting my bid, the seller told me that they signed a contract with another buyer. No big deal. I’ll definitely be looking into more web-based businesses to get my feet wet in the industry.
I think I may look for niche markets which may be easier to break into. I’ve always liked reef tanks so something like a site selling protein skimmers may work.
Comments
Leave a Reply