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  1. #1
    ABW Ambassador Steveinid's Avatar
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    I have been cruising around the forum reading about functioning sites that are for sale. I am surprised that no-one requests (at least I didn't see) a no-compete clause as a condition of sale. As an example; if I bought an Rx site from someone I would request a no-compete clause as a condition of sale. I wouldn't request they stay out of affiliate marketing altogether, just the same category. It does me no good to buy one, and have the person decide 6 months down the road that they do need the money the site produced, or changed their mind about its potential. I would then have someone setting up a site knowing what keywords I am using and going after my customers.

    Is this going too far or not?

    Steve

    "Bueller...? Bueller...?"

  2. #2
    Resident Genius and Staunch Capitalist Leader's Avatar
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    If I was thinking of buying, it would depend on the category.

    A noncompete clause in a category like "books" is fairly useless...after all, there's already 10,000,000 sites promoting "books," so what's another one?

    On the other hand, if I discovered a great market for a niche hardly anyone knew to bother promoting (like "purple widgets made in Southern Washington State")--then a noncompete agreement would be very important.

    ~Revenue is King

  3. #3
    ABW Ambassador
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    How would you find out they decided to compete against you? You could easily get a domain under another name/address etc. Also one of that niche site visitors might like your idea and copy your site. I discovered a nice niche and 2 of my visitors decided to copy it. Not much you can do about it.

    "Nothing focuses the mind better than the constant sight of a competitor who wants to wipe you off the map."
    --Wayne Calloway

  4. #4
    ABW Ambassador Steveinid's Avatar
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    All very true.
    I'm giving up and going to watch TV.

    "Bueller...? Bueller...?"

  5. #5
    ABW Ambassador
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    One reason I don't feel affiliate sites that rely solely on SE or (especially) PPCSE traffic are worth very much. 2-3x a years earnings? please.


    The ranking can be based upon a lot of things the owner can control and could change after sale. The exowner could immediately also setup a new site and do it all again.

    ----
    -JM
    When you're down It's a long way up
    When you're up It's a long way down

  6. #6
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    I had to sign a non-compete when selling a site a couple of years ago. The sales contract took us a few weeks to clarify, with lawyers (the sales price was large enough to make that an acceptable cost).

    Key for me was getting a few paragraphs in there that made it clear that anything that happened to the site after the change of ownership (like a poor Google dance) wasn't my problem.

    They signed, I got my money, and I ran off to start up a new business in another niche.

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