November 17, 2004

Buying or Selling a Developed Web Site: Catch The Crooks With The WayBackMachine

A critical factor in the actual sales price of a developed site is the number of years this developed web site has been on line. This data also affects the "goodwill" factor and ads a level of comfort and an audit trail to the deal.

I don't even consider this data until we reach the 2 year mark and it's value continues to influence and increase as time marches on. Thus a site which has been online for say 5 years provides a greater level of comfort and value based on 5 years than a site which has been on line only 2 years. Natch, I'm assuming that all other factors in the deal are the same in this ballpark example.

Let me explain:

A significant number of deals are fraud and or half truths. Sometimes an honest seller has lost data and can't prove what they are claiming.

The solution to auditing the deal, catching the crooks, and documenting your sales deal lies in the WayBackMachine.

Take a look at Google, circa 1998

Note: the fraudsters and half truth crowd can not manipulate this data so it becomes a critical issue.

The other benefit to both parties in a deal for a site which has been online for 2 or more years is that a lot important issues like revenue, source of traffic, "organic growth" and "brand" become less of a concern. For example, consider the difference in real value and risk with the following actual cases and the inherent danger and then compare this to a 5 year old site which you have verified via the WayBackMachine:

A developed web site online for 1 year or less which is over-optimized for the SE.

Manipulated PR. Manipulated ODP listings.

A short track record of revenue

Traffic is fraudulent and generated via bots

Back links can and often are manipulated.

Absolutely ZERO "organic" growth

You told me your site was 4 years old. HA! NOT!

Sometimes I use the WayBackMachine data to "test" the seller. I have already done my private eye stuff and can track the site in question back a number of years and see that it changed hands or maybe it's changed focus. I already know this data so I politely ask the seller about the history of his site and carefully examine not only what they say but how how they say it.

Along with catching lies and half truths, this testing techniques can sometimes be a deal breaker or raise new red flags which cause me to even more cautious when we get to income verification which is best left to another post

In conclusion, all parties should use the WayBackMachine. Even if you are just purchasing a name only deal. I also use it for all affiliate programs and merchants who are newbies.

Posted by Steve_S at November 17, 2004 11:29 AM