Purchasing an internet business for sale: pros and cons

Buying and selling small businesses on the Internet has become a popular option for those who want to work from home and the benefits of an established business, and are willing to pay a premium price to save themselves the risky start-up period. There are many internet websites that broker this kind of deals, making it easy to buy and sell online businesses.

Buying and selling online businesses

There are many types of web business for sale: online businesses sales vary from just an established website and domain name to full lists of clients and suppliers. The costs will vary accordingly. So what are the pros and cons of purchasing an internet business?

Positive points

Avoid start-up pains
The most obvious benefit of purchasing an online business for sale is the fact that it is already an established business. If you are starting a small home business you will need things such as a website, content, time to get inbound links and a reputation in the eyes of both Search Engines and consumers. If you buy an internet business, on the other hand, all that work has been done for you and the most risky period is over. Tested business model
If you buy an online business that has a positive cash-flow you know that, at least, the idea works. Ultimately the responsibility will be yours to keep it running, or expand, but at the very least you don't need to test if the idea is even viable. You also buy a contacts' network
Most business to business sales will also include things such as client lists, agreements with providers and other intangibles that can make or break a newly formed business. Buying a website from an experienced entrepreneur means you can build on his experience and skills to bring the business to a new level, instead of having to start from scratch.

Negative points

Buyer beware
It's important to do your due diligence before buying a website, because no matter what the vendor tells you, it can all just heavily editorialised data. The Internet is rife with scams, and what looks like an awesome business may actually be just a hype or just not worth the money you are paying for it. You will need to learn a lot suddenly
If you start a business you will learn a lot via trial and error as you bring it to profitability. However, if you just buy an established one, you may find yourself at a loss as to what is required. This happens often to people who believe that an online business works on auto-pilot, or that they can just buy their ticket into a hot niche or business model.