Not Doing Your Due Diligence
Don’t rush into your acquisition. Before buying a content website, it’s essential to conduct thorough research. Here’s what you need to do:
- Check the website’s analytics, including website traffic, audience demographics, and user engagement.
- Conduct a content audit to see which content pieces are performing well and which ones are not.
- Look for any red flags, such as low engagement rates, spammy links, PBN usage, AI content, 301 redirects and outdated content.
Not Considering the Website’s Niche
Buying a content website that doesn’t match your interests or expertise can lead to disaster. Consider the following:
- Ensure that the website’s niche aligns with your interests and expertise.
- Consider whether the niche has growth potential.
- Determine whether the website’s content aligns with your audience’s needs.
- With GPT on the rise, focus on quality content that highlights a unique angle or gives personal insights.
Overestimating the Website’s Value
Overpaying for a content website can significantly reduce your ROI. To avoid overestimating the website’s value, follow these tips:
- Never use the Seller’s Discretionary Earnings (SDE) formula to determine a fair and reasonable price, always stick to an adjusted EBIT
- Look for additional sources of revenue, such as switching affiliate programs or sponsored content, but never factor in hypothetical gains
Not Factoring in Maintenance Costs
Content websites require ongoing maintenance to ensure they remain relevant and engaging to the audience. Here’s what you need to do:
- Determine the website’s maintenance requirements, including content creation, technical updates, and SEO optimization. Don’t get fooled by data from the last months when the seller, maybe, has already shut down the regular content creation.
- Estimate the maintenance costs when you or your team is taking over and factor them into the purchase price.
Ignoring the Website’s Brand Reputation
Buying a content website with a poor reputation can negatively impact its performance and audience trust. Here’s what you need to do:
- Research the website’s brand reputation by checking online reviews and social media comments.
- Talk to direct competitors about the brand you’re acquiring.
- Develop a plan to improve the website’s brand reputation if necessary.