If you haven’t been to Flippa.com and seen the golden age of website buying and selling… oohhhhh baby are you in for a treat.
Buying and investing in a digital asset is a fully involved experience and I often get asked my opinion on the buy-side of the process.
How To Buy And Invest In Digital Assets
I’ll detail that here, but generally speaking, I would say that some buyers are hasty in their action, perhaps pushed along by eager sellers, and many don’t work through a tried and tested process.
So, what should you do?
1. Establish a Criteria
Detail what you are looking for and why. Enter this into a spreadsheet and score each asset out of five for fit. (SICKKKK spreadsheets located in our course for your perusing pleasure).
2. Document Non-Negotiables
It can be easy to get caught up looking at something that is almost a good fit. Don’t get drawn in. What are your non-negotiables? These will be different to your criteria. Limit it to three things.
Here is an example –
- Must be based in the US.
- Must have been operating for 3+ years.
- Must be in either the health & wellness or fitness sector.
Think through yours. This, combined with the above criteria, should ensure you are looking at the right assets.
3. Create a Winning Sales Pitch and Establish Trust
What!? Shouldn’t the seller be pitching me? Yes they should, but a good seller has options.
It’s up to you to ensure that they pick you. You want to warm them up. You want to establish trust. You want to ensure that the level of rapport you have established sets up a smooth asset transfer and transition. Write down your introduction paragraph and use it consistently. It should start with you…who you are and why you are interested in this asset.
For more detail on building trust and negotiation, read these articles on the Flippa blog by Saad Saad. Saad is an Adjunct Professor at Columbia University in NYC, where he specializes in negotiation. He also knows this space, having purchased and sold digital businesses previously.
4. Put forward your best offer, but leave some room for growth or fixes.
I recommend leaving aside at least 20% of your budget. So, if you have a budget of $100,000, you should only spend $80,000. The remaining 20% should be left aside for working on growth and optimization.
5. Use Sales Support Services
Always do due diligence. Flippa offers due diligence products and partnerships you can tap into. Just ask [email protected]. Plus, leverage our post sales support team, contracts of sale and tap into our exclusive Escrow.com discounts.
Codie & Ryan
Co-founder- Unconventional Acquisitions