subject: What Should You Do First When You Buy And Sell Websites? [print this page] The entire process of buying and selling websites can prove to be quite complicated for those who are uninitiated and while on my blog I have come up with some articles already on specific aspects of website flipping, this is the first time that I'm going over the process in detail. This article in particular, covers the initial steps that both parties undertake when they buy or sell a site.
Step 1: Buyer and Seller Agree on the Deal
Before any step can be taken, the transacting parties, i.e. the buyer and seller, have to reach an agreement. As expected, it all starts with the seller auctioning off his website, then the buyer signifying interest, and finally, they reach a deal. The transaction may be done through trustworthy marketplaces like Flippa.com or privately through direct contact.
Step 2: Choosing the Payment Method
Once the price details are in place, it's time for them to choose the most suitable payment mode. There are a couple of alternatives here: using direct payment or let an escrow service handle payment. If you opt for direct payment, you are further given more paying options ? PayPal, bank transfer, and check or money order. If paying via escrow is the agreed payment scheme, there are some things things you might want to take into account.
Using Escrow
Not all website purchases need to be done through an escrow service. There's no specific policy for this, but if possible, transactions that go more than $1,000 should go through escrow. A preferred escrow service that has even been integrated into Flippa.com's system is Escrow.com. If you think Escrow.com's fees may be a bit steep (although certainly worthwhile I should say), there are alternative services you can use such as SafeFunds.com.
Whichever company you choose what's important is that you make sure you are at ease working with that service. Next, register an account with that escrow service. I've used both Escrow.com and SafeFunds.com in the past, I'm aware that that registering with either of these two is simple and costs nothing. No matter how seldom you intend to buy or sell a website, it's always advisable to have an account beforehand so you'll already have an idea of how an escrow service can assist you.
So what really is an escrow service's function? In a nutshell, the process goes like this:
As soon as the terms of the deal are ironed out and are acceptable to both buyer and seller, the buyer then places the funds into the escrow account. The escrow service verifies the funds and gives confirmation to the seller. Upon verification, the seller must then immediately start the transfer of the site to the buyer, who then takes a close look at the "goods". If everything is in order, the buyer informs the escrow service and the seller gets the funds.
While it all sounds pretty clear-cut, some disputes may arise such as the buyer alleging that not all the goods have been transferred as per terms of the agreement. In such situations he can file a dispute claim with the escrow service's dispute resolution system.
As you can see, the first essential steps in buying and selling websites can be easily managed even by those new to thejust starting out in the business, and with the help of escrow services when needed, there's really no reason why you can't flip websites for profit.
