Buying and Selling Websites

In March 2011 the Age newspaper reported that registered .au domains had reached 2 million in number. A small milestone compared to the 93 million .com domain registrations, but significant none-the-less

2 million .au domains registered

Why significant?

The registration of .au domains has stricter criteria than .com domains. Initially, you couldn't register a .au without demonstrating that you were running a business in Australia. The criteria for registration has been relaxed a little over time, but the impact has been that there is inherent trust in Australian domains

93 million .com domains registered

What does this mean for you?

If you are not doing business online, why not? By doing business, I mean adding value to your brand or business by making sure your website increases your business revenue. Is that possible?

Its not necessarily a pretty website that holds a lot of value, but those websites that are able to show that the website itself generates profits or has a substantial following. Facebook is said to be valued at anything between $23 billion and $60 billion depending upon which reports you read. The value in Facebook lies in how many people can be accessed by advertisers.

Think it can't happen in Australia? Spreets.com.au sold for $40 million in 2010 after being in existence for less than a year. The key to getting that value? $4 million per month revenue from a database of 500,000 members.  

Spreets.com.au sold for $40m in 2010

So, what are your plans – and what do you need to know to make them happen?  

I've just spent a great three days with Matt and Liz Raad, who have a lot of experience buying and selling websites. Once you've got your head around the idea of websites as tangible assets, working with them is a great place to start.

Of course, when you need legal help to get your sale through, contact us. 

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