The First Steps To Take When Buying And Selling Websites (Travis Van Slooten)
Sep 2, 2010
The entire process of buying and selling websites tend to be quite complicated for those who are uninitiated and while on my blog I've come up with a number of posts already on different aspects of website flipping, this is the first time that I'm going over the process in detail. This article in particular, covers the early steps that both parties take on once they buy or sell a website.
Step 1: Buyer and Seller Agree on the Deal
Before the transacting parties (buyer and seller) can start the process, they first have to reach an agreement. Needless to say, it all starts with the seller putting up his site for sale, then the buyer signifying interest, and finally, they reach a deal. The transaction may be done through trustworthy marketplaces such as Flippa.com or privately through direct contact.
Step 2: How to Transfer Payment
The second step is for the parties to agree on the mode of payment. There are two choices here: using direct payment or through an escrow service. If you decide to have the buyer pay directly, you are further provided with more paying options ? PayPal, bank wire, and check or money order. If you choose to do it via escrow, there are some things things you have to consider.
Why Use Escrow?
Not all dealings have to be done through an escrow service. There's no specific policy for this, but if possible, transactions that go more than $1,000 should use escrow. A preferred escrow service that has even been integrated into Flippa.com's system is Escrow.com. Some find the fees charged by Escrow.com a bit pricey but (although definitely worth it I should say), there are other services you can use such as SafeFunds.com.
Whichever company you choose in the end, make sure you feel secure letting that service handle your deal. Next, sign up for an account with that escrow service. I've used both Escrow.com and SafeFunds.com in the past, I'm aware that that joining either of these two is easy and free. No matter how seldom you intend to buy or sell a website, it's always recommended to have an account beforehand so you'll already have an idea of how escrow works.
So what really is an escrow service's function? In a nutshell, the process goes like this:
Once the terms of the sale are ironed out and are agreeable to both buyer and seller, the buyer then funds the escrow account. The escrow service verifies the funds and confirms this to the seller. Upon verification, the seller should then immediately start the transfer of the site to the buyer, who then checks the "goods". If the transfer goes without a hitch the buyer gives the go signal to the escrow service and the seller receives his payment.
This may all sound quite simple but in actuality some conflicts may arise like the buyer alleging that the terms of the agreement have not been strictly adhered to. In such situations he can file a dispute claim through the escrow service's dispute resolution system.
As you can see, the first essential steps in buying and selling websites can be easily managed even by those new to thejust starting out in the business, and with the help of escrow services when needed, there's really no reason why you can't flip websites for profit.
About the AuthorThe above post just discusses the initial basic steps of how to buy and sell websites. Drop by our site to get all the steps of the process and other great tips on how to flip websites for profit..