Website due diligence · Digital Asset Investor

Website due diligence

I've been in the website investing game for a while now, and I've learned that due diligence is absolutely crucial when buying a site. Here's my guide to not getting scammed and making sure you're getting what you pay for:

1. Traffic Analysis:

• Use tools like Google Analytics and Search Console to verify traffic claims

• Check the traffic sources - organic search is generally more valuable than social media

• Look for any sudden drops or spikes in traffic - could indicate penalties or manipulation

2. Revenue Verification:

• Ask for screenshots or direct access to revenue accounts (AdSense, affiliate networks, etc.)

• Cross-reference revenue claims with traffic data - does it make sense?

• Look for seasonal trends or one-off spikes that might skew the numbers

3. Backlink Profile:

• Use tools like Ahrefs or Majestic to analyze the backlink profile

• Watch out for spammy or low-quality links that could lead to future penalties

• Check if there's a good mix of dofollow and nofollow links

4. Content Quality:

• Read through the content - is it original and high-quality?

• Check for plagiarism using tools like Copyscape

• Look for signs of AI-generated content (which Google might penalize)

5. Technical SEO:

• Run the site through tools like Screaming Frog to check for technical issues

• Look at page speed using Google PageSpeed Insights

• Check for mobile-friendliness and responsive design

6. Monetization Methods:

• Understand how the site makes money - is it sustainable?

• Are there opportunities to diversify or improve monetization?

• Check if the methods comply with Google's guidelines (especially important for AdSense sites)

7. Niche Research:

• Is the niche growing, stable, or declining?

• Are there any upcoming regulations or changes that could affect the site?

• What's the competition like?

8. Owner's Time Investment:

• How much time does the current owner spend on the site?

• Is there a team or is it all done by one person?

• Are there processes in place that you can take over?

9. Legal and Compliance:

• Check for proper use of trademarks and copyrights

• Ensure the site complies with GDPR, CCPA, and other relevant regulations

• Verify ownership of domain and hosting accounts

10. Growth Potential:

• Are there obvious areas for improvement?

• Could the site benefit from additional content or features?

• Is there potential for expansion into related niches?

Pro Tip: Don't rush the process. It's better to miss out on a deal than to buy a site with hidden issues.

My personal experience: I once almost bought a site that looked great on paper, but during due diligence, I found out that 90% of its traffic came from a single Reddit post that went viral. Always dig deeper!

What about you guys? Any due diligence horror stories or tips to share? What do you look for when buying a site?

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