Workflow 003: Site Acquisition Due Diligence

Complete WorkflowEssential

Overview

Buying an existing website can accelerate your portfolio growth, but one bad purchase can cost thousands. This workflow helps you properly evaluate sites before buying.

Due Diligence Phases

+---------------------------------------------------------------------+
|                    SITE ACQUISITION PHASES                          |
+---------------------------------------------------------------------+
|                                                                     |
|  Phase 1: Initial Screening                                         |
|  +-- Traffic verification                                           |
|  +-- Revenue verification                                           |
|  +-- Quick red flag check                                           |
|      |                                                              |
|      v                                                              |
|  Phase 2: Deep Analysis                                             |
|  +-- SEO health assessment                                          |
|  +-- Link profile audit                                             |
|  +-- Content quality review                                         |
|      |                                                              |
|      v                                                              |
|  Phase 3: Risk Assessment                                           |
|  +-- Algorithm vulnerability                                        |
|  +-- Niche/market risks                                             |
|  +-- Growth potential                                               |
|      |                                                              |
|      v                                                              |
|  Phase 4: Valuation & Negotiation                                   |
|  +-- Calculate fair price                                           |
|  +-- Identify negotiation leverage                                  |
|  +-- Structure the deal                                             |
|                                                                     |
+---------------------------------------------------------------------+

Phase 1: Initial Screening

Step 1.1: Traffic Verification

Never Trust Seller Screenshots

Always verify with your own tools.

Traffic Verification Checklist:
□ Request Google Analytics access (Viewer role)
□ Request Search Console access
□ Cross-reference with Ahrefs/SEMrush estimates
□ Check Similarweb for comparison
□ Verify traffic is organic (not paid/referral)

Step 1.2: Revenue Verification

Verification	How to Verify
Affiliate income	Request login access or live screenshare
Ad revenue	Request AdSense/Mediavine access
Expenses	Get hosting, tools, writer costs
Net profit	Revenue - all expenses

Calculate true monthly net:

Revenue sources (average last 6 months):
  Affiliate: $_______
  Display ads: $_______
  Other: $_______
  = Total Revenue: $_______

Minus expenses:
  Hosting: $_______
  Tools: $_______
  Content: $_______
  Links: $_______
  Other: $_______
  = Total Expenses: $_______

NET PROFIT: $_______

Step 1.3: Quick Red Flags

Immediately walk away if:

🚩 RED FLAGS - WALK AWAY
□ Traffic dropped 50%+ in last 6 months
□ Revenue inconsistent with traffic (suspicious)
□ Seller won't provide Analytics/GSC access
□ Majority traffic from one keyword
□ Recent major algorithm hit
□ Manual action in Search Console
□ Domain has bad history (Wayback Machine)
□ Unnatural link profile obvious in Ahrefs

Phase 2: Deep Analysis

Step 2.1: SEO Health Assessment

Traffic Trend Analysis:

+---------------------------------------------------------------------+
|                    TRAFFIC PATTERNS                                 |
+---------------------------------------------------------------------+
|                                                                     |
|  [GOOD] Steady growth or stable plateau                             |
|  [CAUTION] Flat for 12+ months (may be stuck)                       |
|  [BAD] Declining (why is seller selling now?)                       |
|  [BAD] Huge spike then drop (algorithm hit)                         |
|                                                                     |
+---------------------------------------------------------------------+

Keyword Analysis:

In Ahrefs/SEMrush:
□ How many keywords ranking?
□ Top 10 keywords = what % of traffic?
□ Keyword diversity (not over-reliant on few)
□ Commercial vs informational keyword mix
□ Are rankings stable or volatile?

Step 2.2: Link Profile Audit

Reference: SOP 011 - Anchor Text

Link Profile Checklist:
□ Total referring domains
□ Domain Rating / Authority
□ Link velocity (natural growth pattern?)
□ Anchor text distribution (over-optimized?)
□ Link quality (spam vs legitimate)
□ PBN links present?
□ Toxic link percentage

Link Quality Scoring:

Factor	Good	Bad
DR distribution	Mix of all DRs	All high or all low
Link relevance	Niche-relevant	Random sites
Anchor text	Natural distribution	Keyword-stuffed
Link velocity	Steady growth	Spiky/unnatural

Step 2.3: Content Quality Review

Content Audit:
□ Total articles published
□ Average word count
□ Content freshness (when last updated?)
□ Author expertise evident?
□ Original or AI-generated?
□ Unique value provided?
□ E-E-A-T signals present?

Sample 10-20 top-performing articles:

Are they genuinely helpful?
Would they pass Helpful Content criteria?
Is the content easily replicable or unique?

Phase 3: Risk Assessment

Step 3.1: Algorithm Vulnerability

+---------------------------------------------------------------------+
|                    ALGORITHM RISK MATRIX                            |
+---------------------------------------------------------------------+
|                                                                     |
|  LOW RISK                                                           |
|  [ ] Brand search volume exists                                     |
|  [ ] Diverse traffic sources                                        |
|  [ ] Quality content with E-E-A-T                                   |
|  [ ] Clean link profile                                             |
|  [ ] Survived recent updates                                        |
|                                                                     |
|  HIGH RISK                                                          |
|  [ ] No brand searches                                              |
|  [ ] 100% organic dependent                                         |
|  [ ] Thin/AI content without expertise                              |
|  [ ] Spammy link profile                                            |
|  [ ] Recent traffic volatility                                      |
|                                                                     |
+---------------------------------------------------------------------+

Step 3.2: Niche/Market Risks

Risk Factor	Assessment
Niche trend	Growing, stable, or declining?
Competition	Increasing? Big players entering?
Seasonality	How much does traffic fluctuate?
Affiliate programs	Stable or cutting commissions?
AI disruption	Will AI search impact this niche?

Step 3.3: Growth Potential

Growth Opportunity Analysis:
□ Untapped keywords (content gaps)
□ Link building opportunities
□ Monetization optimization potential
□ Content quality improvement areas
□ Technical SEO quick wins
□ Brand building possibilities

Phase 4: Valuation & Negotiation

Step 4.1: Calculate Fair Price

Standard Multiples (2024/2025):

Site Quality	Multiple
High risk / declining	20-25x monthly
Average	28-35x monthly
Growing / quality	35-45x monthly
Premium	45-60x monthly

Valuation Formula:

Verified Monthly Net Profit: $________
Risk Assessment: Low / Medium / High
Multiple to Apply: _____x

FAIR VALUE: Net Profit × Multiple = $_______

Step 4.2: Negotiation Leverage

Price DOWN if:

Traffic declining
Aging content
High PBN link exposure
Over-reliance on few keywords
Seller motivated to sell quickly

Price UP if:

Growing traffic
Strong brand
Diversified revenue
Clean link profile
High growth potential

Step 4.3: Deal Structure

Standard Deal Components:
□ Asset purchase (domain, content, accounts)
□ Training/handover period (30 days typical)
□ Non-compete clause (same niche)
□ Escrow service (Escrow.com)
□ Transfer of all accounts/accesses

Final Due Diligence Checklist

Before sending money:

□ Analytics access verified (6+ months)
□ Search Console access verified
□ Revenue verified via platform access
□ Link profile reviewed in Ahrefs
□ Content quality sampled
□ Algorithm history clean
□ Brand search volume checked
□ Growth potential identified
□ All expenses disclosed
□ Deal structure agreed
□ Escrow service engaged

Red Flag Summary

Category	Red Flag
Traffic	Recent decline, single keyword dependency
Revenue	Inconsistent with traffic, unverifiable
Links	Obvious PBNs, over-optimized anchors
Content	Thin, all AI, no E-E-A-T
Seller	Won't provide access, rushing sale

002 - Algorithm Recovery - If you buy a site that needs fixing
001 - New Site Launch - Building from scratch instead

Workflow 003: Site Acquisition Due Diligence ​

Overview ​

Due Diligence Phases ​

Phase 1: Initial Screening ​

Step 1.1: Traffic Verification ​

Step 1.2: Revenue Verification ​

Step 1.3: Quick Red Flags ​

Phase 2: Deep Analysis ​

Step 2.1: SEO Health Assessment ​

Step 2.2: Link Profile Audit ​

Step 2.3: Content Quality Review ​

Phase 3: Risk Assessment ​

Step 3.1: Algorithm Vulnerability ​

Step 3.2: Niche/Market Risks ​

Step 3.3: Growth Potential ​

Phase 4: Valuation & Negotiation ​

Step 4.1: Calculate Fair Price ​

Step 4.2: Negotiation Leverage ​

Step 4.3: Deal Structure ​

Final Due Diligence Checklist ​

Red Flag Summary ​

Related Workflows ​