In Part 1 of this series of how to buy and sell websites, I detailed Steps 1 and 2 of the process. Those steps involved buyers and sellers coming to an agreement and the payment methods that are available to both parties to complete the deal. In part 2, I detailed step 3 of the process: getting the domain to the buyer and determining the hosting arrangement. In this final part of the series I will be covering the fourth and final step: handing the keys of the site to the buyer or transferring the site.
Step 4: Handing The Keys Of The Site To The Buyer
Or Transferring The Site
Once the domain has been transferred to the buyer the, seller needs to get the actual website in the buyer’s possession. The seller can do this by handing the keys to the buyer or by transferring the site to the buyer’s web host. The specific options available to accomplish either one are:
Option 1: Seller Hosts The Site Via A Reseller Account
Option 2: Seller “Hands Over The Keys” To A Shared Hosting Account
Option 3: Seller Transfers the Site To The Buyer’s Web Host
Let’s take a look at each option…
Option 1: Seller Hosts The Site Via A Reseller Account
Most people that flip websites have a shared account or a reseller account. I’m not going to get into the nuts and bolts of shared vs. reseller accounts because it’s beyond the scope of this article (although I will likely write about that topic in the near future so stay tuned). Suffice it to say, a reseller hosting account gives you the opportunity to “resell” hosting services through your own account.
In this arrangement, you basically share your hosting account with someone else and pass along the hosting costs to the person you are hosting for – and you can charge anything you want. The person you are hosting for has their own account within your account so the person doesn’t have access to any of your websites or files. For this hosting arrangement then, the seller would offer to host the website for the buyer and would give the buyer access to the hosting account immediately. The buyer then pays the seller a hosting fee that the two parties agree on.
The advantages of this arrangement are that the buyer doesn’t have to obtain hosting elsewhere and doesn’t have to deal with having a website transferred to another hosting account. There is also no downtime of the site at all since nothing is being moved from one hosting account to another – and the name servers don’t have to be changed either. It’s truly a painless and turnkey option for both the buyer and seller. There is also the added benefit for the seller to have a small residual income by providing hosting services.
Option 2: Seller “Hands Over The Keys” To A Shared Hosting Account
Some people who flip websites regularly will create new shared hosting accounts for each website they develop to flip. For example, a website flipper might own 10 websites that are each hosted on their own shared hosting account. In this example, the seller will be paying for 10 separate shared accounts on a monthly basis. This is the most expensive way to setup the hosting as a website flipper. The main advantage, however, is that this setup makes it incredibly easy and painless for both the buyer and the seller.
In this arrangement, the seller will hand over the shared account to the buyer. The seller will simply change all the information over to the buyer’s name, contact info, billing info, etc. and give the buyer access to the account. The buyer will literally take ownership of the account moving forward and will be responsible for the billing.
Unlike the arrangement in option 1, the buyer will not pay the seller for the hosting. The buyer will pay the hosting company directly and will pay whatever that company charges. This option is just like the buyer going out and creating a new account at a web host. The only difference is the seller doesn’t have to transfer the site to another hosting account so there are no delays or down time – and the name servers don’t have to be changed. The buyer just takes ownership of the existing hosting account and has immediate access to the site.
Option 3: Seller Transfers the Site To The Buyer’s Web Host
This is the most common arrangement between buyers and sellers because typically buyers will have their own hosting accounts already. Unfortunately, it is also the most complex and time consuming option – particularly if the site is large with any kind of database (i.e. most WordPress sites).
In this arrangement, the website and all the files associated with it are literally moved from the seller’s hosting account to the buyer’s hosting account. This would be analogous to moving computer files on your computer to someone else’s computer. This option also requires that the name servers be changed with the domain registrar.
The details involved in the process of transferring a site are beyond the scope of this article. I will, however, be writing on the topic in the near future and I will also be providing a step-by-step video of the process. Until then, the basic steps involved are:
1. Backup all website files (and database if applicable)
2. Download all website files (and export database if applicable)
3. Add the domain via an addon domain (shared hosting) or create a new account with a separate cPanel (reseller hosting)
3. Change name servers at domain registrar to point to the buyer’s web host
4. Upload all website files to the buyer’s web host (and import database if applicable)
After all the files and the database are in place, the buyer will have full control and possession of the domain and the website. Any funds that are in escrow will be released to the seller, or if any money is owed to the seller (doing a direct payment deal), it will be sent at this point. The deal will be officially over!
This concludes the three-part series on how to buy and sell websites – specifically the process of the deal itself. I hope it helps you newbies out there. As you can see, the process isn’t as difficult or overwhelming as it might seem at first glance. Now get out there and start flipping websites!
