How To Buy An Established Internet Business Website Online

Learn how to buy established internet businesses with this guide, know the biggest mistakes website buyers make, how to avoid it and the best place to buy websites for sale.

how to buy established internet businesses

Starting a business online and turning it to a multi-million dollar is not an easy task, it takes clear-cut and defined strategy, risk taking and media spends to finally reach to the level one can earn a living from it. Although that doesn't mean one can't become profitable in less time, just that not many can't exercise patient to face the challenges ahead.

I discovered recently that big companies don't bootstrap again, instead, they look for small and growing internet business, with high-profit potentials,  owned by individuals and acquire. This is faster and better compared to the time spent that, at the end, may not be worthwhile for the founder.

Comparison: Why you should buy established internet businesses over starting from scratch:

  • It saves you the startup cost of acquiring customers from scratch, marketing and becoming popular online, besides, what's the assurance that you will even become profitable?
  • You own an already existing business with cash flow, hence can recoup your investment in pre-determined period depending on what your payback metrics is.
  • An established internet business doesn't require the owner's attention at all times, unlike a new venture that demands a lot of strategic thoughts, partnerships, marketing and efforts.
  • Sometimes, when you spot a potential competitor with competitive advantage, the best option is to buy out.

Let's now talk about the biggest internet business sale transactions in history:

Internet business buyout didn't start today, top companies have been exploring the strategy as a way to expand their market, grow and increase long-term revenue. Here are the 10 biggest buyouts in history:
  1. Facebook buys Instagram, a photo-sharing app for $1 billion
  2. Yahoo buys Tumblr for $1.1 billion
  3. Dell buys Quest Software, an ERP solution for $2.4 billion
  4. Google buys Nest Labs for $3.2 billion
  5. Microsoft buys Nokia for $7.2 billion
  6. Oracle buys Sun Microsystem for $7.4 billion
  7. Microsoft buys Skype for $8.4 billion
  8. HP buys Autonomy for $10.3 billion
  9. Google buys Motorola Mobility for $12.5 billion
  10. Facebook buys WhatsApp for $19 billion
These figures are big, right? sure, but that doesn't mean all internet businesses are worth billions of dollars. I wrote this guide for small starters who want to buy established internet business on a lean budget and grow the cash flow year-on-year.

How to Buy Established Internet Businesses

Even though an established internet business offers quicker revenue flow  compared to a new one, it still has its own rules which anyone looking to get value for one's investment must follow:
  • Focus on internet businesses in your industry or niches you have relevant expertise or skill in; this is the first rule you shouldn't overlook, besides, it is more important than the cash flow that might have attracted you to a business you know nothing about. You can buy an online business with impressive monthly revenue figure but end up at a loss if you can't engage your skill or find a way to make it bigger.
  • For multiple business options that meet the first criterion, check which of the niche is attracting more online visitors. This would have been possible if you had access to the back end traffic but here is Google Trend, a veritable tool you can explore to see if the niche is attracting more customers or is at its peak, hence set for a decline. For instance, assuming you found an online store selling blackberry phones online as at 2012-2013, you may be tempted to rush into such niche as it was experiencing massive sale. But, if you have checked Google Trend in the same period, I bet you, you will forget the deal and find another one; the niche was already declining.
  • Check the offer price of the business and compare with your budget.

Where can I find established internet businesses for sale?

One of the best marketplaces for buying and selling internet business is, a trusted entrepreneur portal for buying and selling websites, domain names and mobile applications.

Flippa offers small and big budget users an opportunity to spot profitable internet businesses ( that makes money from Google Adsense, Amazon affiliate, ClickBank, Dropshipping, Commission Junction, Ad sales and eCommerce) available for sale.
You can start by using the filter feature to find a niche focused or specific target online business within your budget range.
Have you bought an internet business before or are you looking for how to buy established internet businesses online, share your comment and tell us what you think?