Day 2 Quick Start Guide

Day 2 Quick Start Guide to Buying and Selling Websites

Ant Quick Start Guide

Dolphin Quick Start Guide

Dragon Quick Start Guide

Day 2 – The Ant Quick Startup Guide

Step 1: Setup Hosting & Install WordPress

Choosing a hosting providing can be a simple task and if you have experience with developing sites you likely have your favorite host company.  However, now that your intention is to build and then sell the website, you need to make sure you are using the tools that make it easiest to sell.  There are buyers who don’t care which hosting company or programming language you use to build the site.  If you want to attract the maximum number of buyers for your sites, you need to use the most common tools and resources.

Here are the standards for the Buying and Selling Websites industry. Although this is not set in stone, it is a list of the most common resources based on our experience.

Video Training to Watch: Module 4 – Structure of the Site

  • Using WordPress – Why?

HOSTING

For hosting providers we highly recommend HostGator.  We use them and have found great success.  Their Reseller Hosting account is the one you want.  This allows you to put multiple domains on the same server for one low cost.

WORDPRESS

WordPress is a great platform for building websites.  You have so many options with premium themes and plugins that will custom the site to exactly what you want. Most importantly, it the one system for programming the website that will attract the most buyers.  Again, you can use html, php or .net – but if you want to get the highest price for your site, use WordPress.

In the Additional Training and Updates section of BASW, we’ve provided extensive training videos on all aspects of WordPress.  Everything from how to install WordPress to How to Use WordPress Basic and Advanced Features to working with the MySQL database.  There are over 40 training videos guiding you through the install and use of WordPress.  If you don’t have a Premium membership yet, you can search YouTube for WordPress install and there are several helpful videos there as well.

WORDPRESS THEMES

We recommend Elegant Themes for a great source of premium WordPress themes.  The cost is low for the amount of themes and the quality.  You can go with several free themes but you have to be careful of where you get the theme.  Several sites provide free themes but have hidden spyware and bugs in theme.  If you plan to build several sites per year, pay the small price to get the list from Elegant Themes.  You’ll also stand out from all the other free theme looking sites when you do so, which will increase the asking price of your sites.

WORDPRESS PLUGINS

There are some standard plugins you should install when setting up the site.  Just click on Add New Plugin in the Admin area of WordPress and search for these plugins to install:

Platinum SEO Plugin: Set up the site using this plugin with the Home Title as your main key phrase, Home Description with a three to five words including your key phrase, Home Keywords with the “Main Phrase”, Canonical URLs marked yes and the 7 Options for nofollow all marked yes.

Pretty Links: This helps disguise affiliate links you have set-up on the site and manage those links.

Mobile App: Make your site available for those on mobile devices to see them without a magnifying glass.

GoogleAnalytics: Although we don’t like to use Google Analytics for sites we are keeping long term (it’s a thing we have against Google knowing everything about our business), this is a plugin that you need for buyers to know the traffic numbers for your site.  We also use GetClicky.

Google XML Sitemaps: Great for search engines to index your site.

Social Sharing: AddThis or ShareThis are two great plugins for adding social bookmarking and sharing icons to your site. (You’ll want to create your social networking accounts with Facebook, Twitter, Google+, LinkedIn or any other that you think is relevant to the type of site you are building.)

Video Trainings to Watch: Ant Formula Module 4 – Structure of the Site

  • Installing WordPress
  • Setting up Analytics with WordPress
  • Setting up Analytics with HTML

Step 2: Setup Internal/External Email System

Setup one email standard for all your sites as you build them so you don’t get confused on which names you used.  We use support@ourdomain for all sites.  Then we setup a forward or catchall for all other mail that is sent to the support@ourdomain email.  That way you can create as many emails as you want and just look at the emails in one place.

Then setup your pop3 email account from the site in your email provider (Outlook, Gmail, etc.).  The most organized way for this is to setup a folder just for this website and filter your emails to go directly to this folder if the “To:” address is *@ourdomain

Next, setup a list email account.   Again, use a standard in the industry such as Aweber, Constant Contact, iContact or MailChimp.  Just setup one account so you don’t have to pay for several and use multiple lists to manage each website.  When you sell the site you’ll transfer the list to the new owners account.

Video Trainings to Watch: Ant Formula Module 2 – Setting Up the Site

  • Layout a Site – Using a MindMap
  • Choosing a Domain & Registrar
  • Choosing the Right Hosting Provider
  • Best Practices for Email and Email Lists

Step 3: Setup Revenue Accounts and Sale Metrics

What do you need to sell your website for?  Setup a metric that will help you decide so you are subjectively deciding what to sell for when you get an offer.  Here is a formula you can use to help determine your metric:

Cost to Create Website + How Much You Want to Make on Website = Sale Price

I know – pretty basic and standard right?  Well, not necessarily.  Here is what we mean by each of these and how to create the overall metric.

Cost to Create Website.  You can figure out the overall cost of a website by including:

  • Cost of the Theme
  • Cost of Hosting Company x Number of Months Paid For
  • Hours Spent multiplied by Your Hourly Rate (If you built it or actual rate if someone else)
  • Overhead of running your business each month divided by the number of sites built that month (If you expense things such as utilities, rent, meals from your business and you only build and sell websites from the business, you can total all expenses and divide by the sites built.  That’s your overall operating costs per website, which should be included in the sale price.)
  • If you determine your overall cost is $500 to build and maintain the site for two months until you sell it, then this will go into the formula under “Cost to Create Website”
The section “How Much You Want to Make on Website” can not strictly be how much you as the owner want to make.  Since you have already included your time and operating costs in the cost of building the site, this is strictly looking at the business from an owners perspective.  Let’s say you want a 20% return, so you would multiply the cost of the website times 1.2 or $500 x 1.2 = $600.  That’s the price you need to sell the site. Your “nut” or hard cost on the site is $500.  If you sell the site for anything less than $500 you are losing money.
Setup the revenue accounts.  
On the Day One you looked at sources for generating revenue for the site.  Now go to each of these places and setup an account.  For example, if you haven’t created an Adsense account with Google or a ClickBank account to promote affiliate products, now is the time to do so.
If you plan on collecting money on your site, you need the ability to take that money online.  If you don’t have your own merchant account setup yet, get one.  Or if you already have one, get approval to use it on this site.  For the quickest method, use Paypal processing.  It’s not a solid as having your own merchant account but you also won’t have to go through all the hopes involved with creating a merchant account for a new website.

Video Trainings to Watch: Ant Formula Module 3 – Setting Up the Site

  • Building Affiliate Websites
  • Building Product Based Websites

Day 2 – The Dolphin Quick Start Guide

Step 1: Develop Due Diligence Checklist

When buying websites you want to have the best due diligence system in place.  There are unscrupulous individuals that want to take your money.  There are also just dishonest people who think they are hurting anyone by selling websites with fake traffic or  revenue numbers.  Here is an article on one of our websites with more details.  However, for the complete list and specifics use the resources and videos below.

Video Trainings to Watch: Dolphin Module 2 – Scoring and Due Diligence

  • Protect Yourself – Due Diligence Musts
  • Analyzing Your Risks

Other Resources: Found in the Tools & Resources Section, you’ll get the documents and spreadsheets for building your due diligence model.

  • Website Due Diligence

Step 2: Use Deal Analyzer Reports to Build Checklist

Develop a list of checks you can do for due diligence on a website using the tools below.  For example, you can measure the traffic, number of backlinks, where the traffic is coming from and where the backlinks are coming from.  All could be potential items on your due diligence checklist.

SEMRush has great data with their reports for analyzing a website.  We recommend them highly because we use them. Under the Deal Analyzer you’ll find SEMRush reports.  Premium members can access up to 30 reports for free.

In addition, we have outlined all the Due Diligence Tools we use under the Formula and “3rd Party Tools” section under “Due Diligence Tools”.  When using these tools you need to keep in mind the following key areas that you are looking for when searching a site to buy for due diligence:

How is the site making money (ReverseInternet and the Buy-a-Website Finder, just click the green button the right and you’ll get a list of most of the places the site is generating income)

Is the content unique (Copyscape, Grammarly.com, Plagium)

What is the volume of traffic to the site (Alexa, Compete)

Who Owns the Site (WhoIs, DomainTools)

Is there any value in the social following of the site (SocialMention, Topsy)

Are there trademarks in the domain you need to worry about (Trademarkia)

What are the value of the backlinks to the site (OpenSiteExplorer, ReverseInternet)

When was the site first indexed (Internet Archive)

How is the website built and with what technology (BuiltWith)

Step 3: Layout X Factors and Subjective Scoring

Develop a list of X Factors.  Factors that will stop you immediately from looking further at a site to buy.  For example, the type of content on the site may stop you.  If it includes porn, gambling or any other type of content that could stop you from buying it, that’s an X factor.  Another example, may be the amount of traffic, revenue or age of the site.  Maybe you only want to deal with a certain level of site.

All of these are X Factors and should be the first level of your due diligence scoring.  If the site you are looking at matches any X Factor you stop and move on to a new site.

Subjective Scoring is looking at the overall aspects of a site that don’t have specific metrics or numbers you can quantify such as what you found in Step 2 today.  These would include the overall look and feel of the site and just gut reactions to the data you uncover.  Maybe you see that the site generated $5,000 per month for the last three months but the site has only been around for 5 months. That would be a red flag for us.  How does a site get $5,000 consistently over three months in the first five months its been around unless they are buying traffic or getting referral traffic.  Then the question is, “Is the traffic sustainable and profitable”.  All subjective things that need to be looked at.

Video Trainings to Watch: Dolphin Module 2 – Scoring and Due Diligence

  • Overall Buying Strategy for Dolphins
  • How to Pick a Niche & Type of Site to Buy
  • How to Know the Price to Pay for a Site

Step 4: Complete Scoring Model for Due Diligence

Now take all the potential checks you can do with the tools we’ve outlined above to create a due diligence checklist and score.  This is done by putting rating each item that can be measured with a score of 1 to 10, with 10 being most important for you.  If a site’s revenue is most important to you, you’ll setup a rating system from 1 to 10 with 1 being $0 revenue and 10 being your target revenue figure.  If the target is $5,000 and your research shows it’s only $2,500 you would rate the site a 5.

Do this for every item of due diligence.  If you have 20 items (we have over 100), then your best score would be 200.  20 x 10.  Most likely, the majority of sites you score will avg. between 125-175 if your best score is 200.  You can then determine your level of risk you want to take.  The lower the score the higher the risk of the site not maintaining the level of traffic and or revenue or potential that you wanted.  Maybe you decide to only buy sites with a score of 150 or greater.

 

Day 2 – The Dragon Quick Start Guide

Step 1: Develop Due Diligence Checklist

When buying websites you want to have the best due diligence system in place.  There are unscrupulous individuals that want to take your money.  There are also just dishonest people who think they are hurting anyone by selling websites with fake traffic or  revenue numbers.  Here is an article on one of our websites with more details.  However, for the complete list and specifics use the resources and videos below.

Video Trainings to Watch: Dragon Module 3 – Due Diligence Methods

  • Protect Yourself – Due Diligence Musts
  • Analyzing Your Risks

Other Resources: Found in the Tools & Resources Section, you’ll get the documents and spreadsheets for building your due diligence model.

  • Website Due Diligence

Step 2: Use Deal Analyzer Reports to Build Checklist

Develop a list of checks you can do for due diligence on a website using the tools below.  For example, you can measure the traffic, number of backlinks, where the traffic is coming from and where the backlinks are coming from.  All could be potential items on your due diligence checklist.

SEMRush has great data with their reports for analyzing a website.  We recommend them highly because we use them. Under the Deal Analyzer you’ll find SEMRush reports.  Premium members can access up to 30 reports for free.

In addition, we have outlined all the Due Diligence Tools we use under the Formula and “3rd Party Tools” section under “Due Diligence Tools”.  When using these tools you need to keep in mind the following key areas that you are looking for when searching a site to buy for due diligence:

How is the site making money (ReverseInternet and the Buy-a-Website Finder, just click the green button the right and you’ll get a list of most of the places the site is generating income)

Is the content unique (Copyscape, Grammarly.com, Plagium)

What is the volume of traffic to the site (Alexa, Compete)

Who Owns the Site (WhoIs, DomainTools)

Is there any value in the social following of the site (SocialMention, Topsy)

Are there trademarks in the domain you need to worry about (Trademarkia)

What are the value of the backlinks to the site (OpenSiteExplorer, ReverseInternet)

When was the site first indexed (Internet Archive)

How is the website built and with what technology (BuiltWith)

Step 3: Layout X Factors and Subjective Scoring

Develop a list of X Factors.  Factors that will stop you immediately from looking further at a site to buy.  For example, the type of content on the site may stop you.  If it includes porn, gambling or any other type of content that could stop you from buying it, that’s an X factor.  Another example, may be the amount of traffic, revenue or age of the site.  Maybe you only want to deal with a certain level of site.

All of these are X Factors and should be the first level of your due diligence scoring.  If the site you are looking at matches any X Factor you stop and move on to a new site.

Subjective Scoring is looking at the overall aspects of a site that don’t have specific metrics or numbers you can quantify such as what you found in Step 2 today.  These would include the overall look and feel of the site and just gut reactions to the data you uncover.  Maybe you see that the site generated $5,000 per month for the last three months but the site has only been around for 5 months. That would be a red flag for us.  How does a site get $5,000 consistently over three months in the first five months its been around unless they are buying traffic or getting referral traffic.  Then the question is, “Is the traffic sustainable and profitable”.  All subjective things that need to be looked at.

Video Trainings to Watch: Dragon Module 2 – Preparing to Buy Sites

  • Overall Buying Strategy for Dragons
  • Picking a Niche and Type of site to Buy
  • How to Know the Price to Pay for a Site

Step 4: Complete Scoring Model for Due Diligence

Now take all the potential checks you can do with the tools we’ve outlined above to create a due diligence checklist and score.  This is done by putting rating each item that can be measured with a score of 1 to 10, with 10 being most important for you.  If a site’s revenue is most important to you, you’ll setup a rating system from 1 to 10 with 1 being $0 revenue and 10 being your target revenue figure.  If the target is $5,000 and your research shows it’s only $2,500 you would rate the site a 5.

Do this for every item of due diligence.  If you have 20 items (we have over 100), then your best score would be 200.  20 x 10.  Most likely, the majority of sites you score will avg. between 125-175 if your best score is 200.  You can then determine your level of risk you want to take.  The lower the score the higher the risk of the site not maintaining the level of traffic and or revenue or potential that you wanted.  Maybe you decide to only buy sites with a score of 150 or greater.