Brilliant site ,awesome product , strong revenues but doesn’t sell. Why ?

Global information network, abstract techno backgroundsThe other day I saw this amazing website for sale , it had a very good solid product that was popular too and a strong client base that lapped up almost any new product that the site put up for sale. The revenue story was stable & strong. The price the seller expected wasn’t very high too.

Inspite of all the wonderful things this site had going for it, this seller got a lukewarm response ! Surprising ?

Not very  – if you think about what most buyers look for when they buy a site – they want to buy a site that is low maintenance – ideal if it can run in an auto-pilot mode. Or the technology that it is based on, should have a large talent pool easily accessible via freelancing sites.

The site in question used a complex technical product as its base – with very few developers around who had the required expertise. So , for a buyer, it was either learn the technology yourself and maintain the site, or find those rare experts in the market & pay exorbitantly for them.

Does that mean such sites make for a bad flip ? No, not always. If you throw in 6 months of technical support (paid of course), you give the buyer a reasonable amount of time during which he / she can plan for and put in place some more long-term support arrangements. This lengthy transition period also helps the buyer focus on understanding the site / products and on revenue-generating activities – instead of spending all his time & energy on support issues that he is not equipped to handle in the first place. In 6 months, the buyer would be able to promote the site some more, generate some revenue and in turn put that money back into the business by investing in a proper support team.

What say ?

 

 

 

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