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Old 09-16-2005, 01:38 PM   #4
I am a Contributing Geek. Are You?
Steve_S's Avatar
Join Date: Aug 1998
Location: Las Vegas, Nevada, USA
Posts: 5,224

A VERY interesting topic GEEK Rivux

A few quick thoughts:

1. I'm not surprised that you have recieved mixed thoughts on this issue. At the end of the day, it's between the seller and buyer and a lot of folks offer advice which is well intended but just how many deals have they been involved with and at what price points?

2. I generally agree with the comments of my fellow geek fusionhosting but lets take one aspect of your question, pretend I'm the buyer, and REALLY get serious.

Seller says: I'm also including my email list of 4K or 10K or 300K.

Buyer performs due dilligence to see if their is any value in the list and or to determine if in fact it's a contingent liability which means new owner sends email blast, host gets numerous complaints, site is shut down and black listed.

Begin due dillegence:

- Double opt in (ditto to fh)
- CAN SPAM compliant if commercial in nature
- Frequency of mailings
- Review of content in the emails for the last 12 months
- Buyer silently joins list to see
- Buyer searches IA for sub form and opt out
- Buyer searches "black lists" and SE for complaints
- Buyer examines the list for free email domains verses ISP and or domain name emails
- Buyer asks and verifies source of subs and related TOS. Direct subs or passed around lists. Exactly WHAT motivated folks to opt in which must be present on the site which is for sale?
Edit: - Buyer performs a historical review of the list. Issues that may or may not send up red flags are: the age of the list, sellers maintenance, purging of bounces, opt out is automatic or manuall, computation of average number of subs per month over a given period of time, and the quality and reputation of the script which handles this along with licensing issues with respect to the script.

Conclusions: Iv'e seen this issue actually dilute the sale since a smart buyer performs the due dillegence, does not recieve "make sence" answers and or facts, and then starts to think about the rest of the deal and how many other issues are questionable. It's normally a deal breaker and the louder the "pitch" for the list, the more I investigate.

Iv'e also seen lists which are in fact legit, compliant, have already been monetized, pass the due dillegence exam, and thus they added lots of value to the deal.

Edit: I didn't cover "Membership" deals and the due dillegence or liability of same. To some exstent your due dillegence is driven by the specific type of membership. Again, FH hit the nail on the head with his make sence thoughts but I would be happy to post more on this issue if you tell me the specific type of membership we are discussing. Forums, chat, hot or not, blog, CMS, you name it and we can share thoughts.


Last edited by Steve_S; 09-16-2005 at 02:00 PM.
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