In our last discussion, we looked at where and how to search for your new adult website. Now that you’ve identified a potential site, it’s time to focus on collecting the right details and moving toward making an offer.
So, you’ve found a website that interests you. What comes next?
Review the Information Provided
Once you’ve contacted the broker or seller, take time to carefully review the materials they provide. A trustworthy seller or broker should be open and transparent, offering complete details about the site. If they’re reluctant to share basic information, consider that a red flag. A serious seller will give you the data you need to make an informed decision.
Here’s what you should expect:
- Site History: Find out how long the site has been running, its background, and why the owner is selling. This insight helps you evaluate the deal.
- Content Inventory: Ask about the amount of content available and whether it includes modern formats like 4K or VR. Also, determine how often new material is added.
- Financial Statements: Request profit and loss statements covering at least the past three years. Ensure the information is current—if it’s midyear and they only show numbers through last December, that isn’t sufficient. You need accurate, up-to-date performance data.
- Membership Stats: Ask for daily sign-up and rebill figures. Look deeper into retention rates and request raw data to verify the claims.
- Content Access: If it’s a paysite, request a username and password to review the content yourself. This will let you evaluate its quality and originality.
Content Production Details
Determine whether content is created in-house or through outside producers. If outsourced, confirm whether those producers will continue after the sale. This information helps you anticipate future expenses and the effort needed to maintain fresh content.
- Production Costs: Ask about the site’s production costs and whether they remain consistent.
- Distribution Channels: Find out if the seller has used other outlets like clip stores, VOD, or DVDs. These may represent additional revenue opportunities.
- Content Exclusivity: Make sure the content is truly exclusive. Sometimes “exclusive” can mean the material has also been distributed through other channels. Clarify any existing or past distribution agreements.
Site Operations and Management
Assess whether the site can run without the current owner’s involvement. If the business relies heavily on them, you may need to take on daily management tasks, which affects the site’s overall value.
Advertising and Traffic Sources
Learn about the advertising strategies used and the site’s traffic sources. Request access to Google Analytics to verify traffic data. This will show whether the traffic is sustainable and if it’s driven by organic or paid methods.
Making an Offer
Once you’ve gathered and reviewed this information, you’ll be ready to make an informed assessment. If the site matches your goals, you can move forward with an offer. Ultimately, the site’s value depends on what it’s worth to you. Without these details, however, you risk making a poorly informed decision.
If you’re working with a broker like Adult Site Broker, we can help you determine the site’s value and arrive at a fair price.
In our next discussion, we’ll walk through the final steps of purchasing a site, including due diligence and closing the sale.
If anyone has any questions about anything you see in this article, I’d be more than happy to help. Contact Us on our website.
