the do´s and dont´s when selling an affiliate website/network

RumpelKumpel

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Since here are quite a lot off guys who successfully sold or bought casino or sportsbetting affiliate sites i was wondering what are in your personal opinion the most important things during the purchase process? Which Information is ok to share or request, and which information only can be revealed after the sale is completed?

Jurisdiction
Does it matter under which jurisdiction the sales contract is? Are there jurisdictions to avoid?

Due Dilligence
Which information are you willing to share/ do you have to see before a sale can go through?

1. income/affiliate accounts
I believe this is pretty much standard. I would expect every seller to share the monthly numbers of clicks, sign ups, ftds, rev share, the deal structures etc for the last 2 - 3 years. Before a Letter of Intend has been signed an excel files should be good enough, but after that read only / supervised access to the affiliate backoffices is a must for me.

2. profit & loss
Of course i personally would like to know how much the affiliate spent during the last years on his site - especially for content, tech, plugins, backlinks, design, hosting, tools but also in terms of his own time.

3. google analytics and search console
This i find very difficult. I unfortunately heared of affiliates initiating the sales process, scraping the data and "copying" the content instead of paying for the site.
Personally i believe that a supervised access (eg 2 persons in one room, live demonstration) plus the raw numbers (visitors, impressions, paid vs organic) should be given. But whats your opinion when it comes to more detailed information like eg specific site->visitors->impressions->keywords->clicks?
As a buyer i want to get the full picture. But should the seller keep this specific information for himself?

4. Non Compete Clauses
your opinion on that?

contractual penalities?

Professional advice?
Any recommendations for law firms or consultants specialised in this area?

Anything else important for the sales process? Looking forward to read some of your opinions and experiences!
 

riih

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Here's some answers from a lawyer friend of mine who has done 30+ major acquisition deals in igaming affilition. Answers are from the buyer side, but they help a seller understand the important parts.

Jurisdiction
Does it matter under which jurisdiction the sales contract is? Are there jurisdictions to avoid?
If you think a particular country is corrupt and unfriendly towards foreigners, you can assume courts won't treat you fairly when fighting against a local company. The buyer often wants to use their home jurisdiction. Do you think there's a chance something will go wrong?

Due Dilligence

Which information are you willing to share/ do you have to see before a sale can go through?

1. income/affiliate accounts
I believe this is pretty much standard. I would expect every seller to share the monthly numbers of clicks, sign ups, ftds, rev share, the deal structures etc for the last 2 - 3 years. Before a Letter of Intend has been signed an excel files should be good enough, but after that read only / supervised access to the affiliate backoffices is a must for me.
The "theoretical" stats are not as important, as the actual results. Are there payment issues? 10k earnings in the system don't mean much if the partner never pays.

The buyer should go for more detailed checkups of accounts overall. For example operator partners can be risky - do they have a license? Which one?
Is the country about to regulate? What can be the consequences on revenue?
Are there synergies between deals?


2. profit & loss
Of course i personally would like to know how much the affiliate spent during the last years on his site - especially for content, tech, plugins, backlinks, design, hosting, tools but also in terms of his own time.
A good buyer wants to know literally everything that is documented and even beyond. The buyer has to take the risks into account in their offer, and uncertainty is definitely a risk. Keeping secrets will definitely affect the offer.

3. google analytics and search console

This i find very difficult. I unfortunately heared of affiliates initiating the sales process, scraping the data and "copying" the content instead of paying for the site.
Personally i believe that a supervised access (eg 2 persons in one room, live demonstration) plus the raw numbers (visitors, impressions, paid vs organic) should be given. But whats your opinion when it comes to more detailed information like eg specific site->visitors->impressions->keywords->clicks?
As a buyer i want to get the full picture. But should the seller keep this specific information for himself?
A buyer will want as much info as possible, and not sharing details is definitely a red flag. It really is tricky, as you have to find that balance where you don't give all your secrets. Penalty clauses are important for a seller to mitigate the risks.

A knowledgeable buyer will definitely want to see trends and even delve deeper into details of the SEO work - for example, do backlinks follow?

4. Non Compete Clauses
your opinion on that?
A common part. I would as a buyer always go for non compete. It is wise to also have earn-out clauses; plenty of acquisitions in affiliation have gone wrong when the site goes from passion to corporate ran.

Any recommendations for law firms or consultants specialised in this area?
PM and I'll gladly put you in touch.

Anything else important for the sales process? Looking forward to read some of your opinions and experiences!
IP is important. The buyer should ensure copyrights and trademarks are owned and transferred. One of the worst case scenarios would be to buy a site that turns out to be infringing on a trademark with the whole brand name.
 

RumpelKumpel

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Thank you for that - super helpful. I am more than interested to get a professional consultant on board. since I cant send PMs please mail your contact to rumpelkumpelcasino@gmail DOT com
 

nwalker

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I've sent you an email with a recommendation.
 

riih

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Thank you for that - super helpful. I am more than interested to get a professional consultant on board. since I cant send PMs please mail your contact to rumpelkumpelcasino@gmail DOT com

Cheers, he has emailed you
 
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