If you have $5K...what will you invest into?

never-sleep

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Its a mixture of skill and science :)

As with most places on the internet you will come across scammers and liars, so I always make sure that the seller has good feedback. Its important to verify the analytics for yourself to make sure the traffic is real, you can ask the seller to add you to GA so you can see thsi.

Checking the financials is a little harder. Most good sellers will upload screenshots of their sales/ income. For things like Adsense make sure that the screenshot actually relates to the site in question. For Paypal screenshots you have to be a bit trusting.

A good rule of thumb is that avarage website auction value is more or less 12 months of income. If the auction price is very low, you may think you're getting a bargain but it could be a case of too good to be true.

Don't be afraid to ask lots of questions to the seller and watch the bidding patterns. If the site is really good then be prepared to be very active with your bidding in the last couple of hours.
 
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