Thinking of buying a website and using a brokerage service

Need basic advice

[NFrias]

I would like to purchase a website from its current owner, however, my knowledge in this matter is quite limited to the research I've done in the past few days. Therefore, I would like to use a domain broker to assist me through the entire process.

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What should I look for when selecting a domain broker?

What services does a good broker provide?

How do I find domain brokers?

What are the usual steps in the process of buying a website?
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[edited by: Webwork at 12:09 pm (utc) on Aug. 10, 2005]
[edit reason] Per Charter please avoid requests for specific recommendations [/edit]

[Webwork]

Hello NFrias and welcome to WebmasterWorld. Please check your stickmail for a message I sent you about your post.

Buying a domain or website is a simple and complex process. Simple: You and the seller agree to a price and the seller transfers the domain and website. Complex: Setting a reasonable price.

What price is right? Here's thread about pricing domains (not websites): [webmasterworld.com...]

How do you protect yourself to assure the domain will be delivered once you've made payment? Use an "escrow service" or "domain escrow service".

Websites are more complex to value and I strongly suggest that you spend a lot more time educating yourself about website values before spending >$1,000 for a website unless you are better informed. Otherwise how will you know what questions to ask when a domain broker suggests a purchase price or offer?

Website values arise from the nature and source of their traffic, the value of the website's content, the value of what - besides the domain name - you are buying (software, customer lists, etc.).

A broker may offer guidance however, without knowing a lot more about how to value a domain, how will you know if you are getting basically sound advice? Without educating yourself how will you know what to negotiate for?

If it's a small sum - which is relative - then you can consider any shortfalls in the process the price of your education. If it's a large sum then you best consult with several experts: Legal, SEO/SEM, traffic tracking experts, domain valuation, website valuation, software, etc.

[SedoCoUk]

Hi,
I'd agree with Webwork - forearmed is forewarned so get as much info as you can! In my experience, a good broker would be knoweledgeable, have verifiable experience in selling/buying websites (not just domains) and work on a flat success-based commission - ie. no sale, no charge. As Webwork said, some brokers would be in a position to offer helpful advice while others restrict themselves to simply brokering the actual sale - I suppose it's up to you how involved in the choice of website you would want the broker to be.

Buying and selling websites involves a lot more detail than domains so a I'd say a good contract drawn up by a lawyer with domain experience would also be advisable. You'll need to address a lot of issues, for example traffic, database access, content, email forwarding etc.
Good luck!