If someone was to ask me what they would be buying if they were to purchase a Web based business, I would have to say they are getting either an existing customer base or readers/subscribers. It really depends on the business model I suppose. After looking at this article from Web Marketing Today, it would appear that I might have left out a few things.

If applicable, you sell the domain name, the traffic that is coming to that domain name, any online software (shopping cart) that runs the business, and the income and liabilities of that business. Sometimes the previous owner also sells his availability for questions for 6 months to a year to the new owner. All of this is negotiable, of course.

If you’re considering buying an online business, realize that these days, domain names aren’t nearly as high priced since people have figured out that the name is only valuable if you have a business plan that enables you to monetize the name.

Ask: Why do you want to sell this business? Likely, the reason the owner wants to sell is because he doesn’t feel he can grow the business economically. Don’t be impressed by the present owner’s claims that he spent tens of thousands of dollars on the site. It may well be true, but unless the site needs very specialized software to power it, much of that investment may have been overpriced or unneeded. Rather, put much more emphasis on the current average net income from that business over the last 6 months and one year. Consider current traffic to the site, the reputation of the site in online forums, and its potential for future income.