Finalizing the Purchase: Key Considerations and Steps After Acquiring Your New Website
In our previous discussion, we talked about how to determine the value of a website, negotiate the sale, and get to the point of drafting an agreement. Now, let’s focus on what should be in that agreement and what to expect after completing the sale.
Drafting the Agreement: What to Include
Your attorney will handle the legal details, but as the buyer, there are several key considerations to keep in mind:
- Closing Date: Determine the date you’d like to close the deal. Ensure you’re prepared to pay the deposit (if applicable) or the total purchase amount by that date. Delays on the buyer’s end can cause unnecessary complications.
- Asset List: Ensure all purchased assets are listed in the agreement. This includes domains, payment processing accounts, vendor relationships, and all necessary records, such as 2257 compliance for age verification. Be sure to address ownership of the site’s source code and any software licenses.
- Payment Terms: If there’s a payment schedule, outline it in detail. While most deals involve full cash payment at closing, some sellers may offer financing for the remaining balance after an initial down payment.
- Closing Costs: Clarify who will cover closing costs, such as escrow fees. While it’s typically the buyer’s responsibility, this can be negotiated between the parties.
- Seller’s Involvement Post-Sale: Specify the seller’s role after the sale. Will they assist in the transition for a few weeks or months? This is essential, especially if you’re new to managing the site or need their guidance.
The key takeaway is everything is negotiable. Don’t assume anything—address all details explicitly in the agreement to avoid misunderstandings later.
If the Seller Drafts the Agreement
If the seller is responsible for drafting the agreement, communicate all the above points to your attorney. Your legal representative should carefully review the contract to protect your interests. It’s crucial to work with an attorney who understands the adult industry and its specific challenges.
Closing the Deal and Taking Over
Once escrow closes and the agreement is executed, congratulations—you now own the website! But now comes the task of running it smoothly. Here’s what you need to focus on next:
- Understand the Operations: Ensure you clearly understand the website’s daily operations. Ideally, the former owner will assist you for a period of time to guide you through the processes.
- Content Production: If the site involves regular content updates, you must manage production. If you’re unfamiliar with this aspect, it’s essential to find a reliable team or vendor to keep content flowing.
- Payment Processing and Affiliates: Get familiar with how payments are processed and how to handle affiliate payments. If the previous system works well, it’s best to maintain it initially and then evaluate any necessary changes later.
- Consulting Help: If you lack experience running an adult website, consider seeking professional guidance. At Adult Business Consulting, we help new site owners navigate content production, payment processing, hosting, and more. Visit AdultBusinessConsulting.com to learn how we can assist you in managing your new acquisition.
Evaluating Operations
Once you’re operating the website, thoroughly evaluate all expenses, services, and back-end operations. This includes:
- Vendor Relationships: Assess whether the current vendors are providing good value. Are you getting the best price for the services you need? For example, hosting is often an area where people overpay for subpar performance, such as slow servers.
- Optimization: Look for areas where you can optimize operations or cut costs without sacrificing quality. This could involve renegotiating with vendors or finding new service providers that offer better deals.
Final Thoughts
Running a newly acquired adult website comes with challenges, but by following these steps, you’ll be well-prepared to handle them. If you have any questions or need further guidance, please get in touch with us. At Adult Site Broker, we’re here to help with all aspects of buying, selling, and managing adult sites.
For more information or questions about what’s covered in this article series, visit our contact page at Adult Site Broker.
