Website due diligence guide
Due diligence is what separates buyers who get burned from buyers who build real passive income. Before you transfer any money, independently verify every claim the seller has made about traffic, revenue, and ownership. This guide covers all seven areas you need to check. Ready to find a site to evaluate? Browse websites for sale.
- 1
Verify traffic independently
Never rely solely on screenshots. Request read-only access to Google Analytics or Google Search Console so you can see historical traffic data yourself. Look for consistent trends over at least 12 months, not just recent spikes. Check the traffic source breakdown: organic search traffic is the most defensible. Social or viral traffic can disappear overnight. Verify that reported pageviews align with ad network earnings (a site claiming 100,000 monthly pageviews but earning $30 from ads likely has inflated traffic numbers or very low-quality visitors).
- 2
Verify revenue and financial data
Request exports from every revenue source: Stripe or PayPal for SaaS and eCommerce, Google AdSense or Mediavine for display ads, affiliate dashboards (Amazon Associates, ShareASale, Impact, etc.) for affiliate sites, and Substack or ConvertKit for newsletters. Cross-reference revenue data against bank statements for the past 12 months. For SaaS businesses, also request a subscriber export showing active customer count, MRR, and churn data. Any discrepancy between claimed and verified revenue is a red flag.
- 3
Audit the backlink profile
Run the domain through Ahrefs, Semrush, or Moz to review the backlink profile. Look for a natural link distribution: some high-authority editorial links, some niche directory links, and a long tail of low-authority links. Red flags include a sudden spike in links pointing to the site, a high percentage of exact-match anchor text, links from link farms or private blog networks (PBNs), and a large number of links from unrelated international domains. Also check Google Search Console (under Security and Manual Actions) for any existing penalties.
- 4
Assess content and SEO health
Crawl the site using Screaming Frog or a similar tool to identify thin content pages, duplicate titles, missing meta descriptions, broken internal links, and redirect chains. For content sites, check whether the top-ranking pages are genuinely useful or rely on outdated tactics that may trigger future Google algorithm updates. Review the site's history in the Wayback Machine for content quality over time. A site that ranked well historically through thin content is a high-risk acquisition even if it looks healthy today.
- 5
Evaluate technical infrastructure
For SaaS businesses and online tools, review the codebase before signing anything. Check for critical security vulnerabilities, outdated dependencies, or architecture that would be expensive to maintain. Ask the seller how much monthly development time the product requires and what happens if a key third-party API changes pricing or terms. For all sites, verify hosting costs, domain registration expiry date, and whether the domain is registered in the seller's name (not a registrar holding account). Confirm SSL certificate status and Core Web Vitals scores.
- 6
Analyse concentration and platform risk
Identify every single dependency the business relies on. For content sites: what percentage of traffic comes from a single Google keyword cluster? For affiliate sites: what percentage of revenue comes from Amazon Associates (subject to unilateral rate cuts)? For SaaS: is the product built entirely on a third-party API that could break or reprice? For newsletters: is the list on a platform that owns the subscriber relationship? Concentration risk directly affects the valuation multiple a site should command. Businesses with significant platform risk should be priced accordingly.
- 7
Review legal documents and IP ownership
Confirm that the seller legally owns all assets being sold: the domain, the website code, all content (or has the right to sell it), any trademarks, and any software licenses. If the site uses contractors, check whether the work-for-hire agreements properly assigned IP to the seller. Review any existing contracts with advertisers, affiliates, or service providers to understand which transfer with the sale and which terminate. For transactions over $10,000, have a lawyer draft or review the Asset Purchase Agreement before funds change hands.
Common red flags to watch for
- Seller refuses to give read-only analytics access and offers only screenshots
- Revenue spikes in the 1-3 months immediately before listing
- Traffic that does not match the reported ad network earnings
- Large percentage of traffic from a single keyword or a single social post
- Domain not registered in the seller's name
- Existing APA clauses that limit buyer warranties
- Seller cannot explain revenue drops in the backlog clearly
- Backlinks from PBNs or link farms that could trigger a future Google penalty
Related guides
- How to Buy a Website, the full step-by-step buying guide from budget to transfer
- Website Acquisition Checklist, 34-item checklist covering every phase including due diligence
- Website Valuation Guide, understand how websites are priced before you make an offer
- Transfer & Closing Guide, what happens after you agree on a price
- NDA glossary entry, when to sign a non-disclosure agreement during due diligence
- LOI glossary entry, what a Letter of Intent covers and when to use one
- Quality of Earnings (QoE) Report, when to commission an independent earnings verification
- SaaS Due Diligence Checklist, 8-area SaaS-specific framework: MRR verification, churn cohort analysis, codebase audit, API risk, and legal review
- Content Site Due Diligence Checklist, 8-area content site-specific framework: traffic verification, backlink audit, revenue validation, and transfer planning
- eCommerce Due Diligence Checklist, 8-area eCommerce-specific framework: gross margin, supplier risk, inventory valuation, platform transfer, and legal compliance
- Newsletter Due Diligence Checklist, 8-area newsletter-specific framework: subscriber quality, ESP transfer, sponsorship audit, platform risk, and compliance
- Tool & App Due Diligence Checklist, 8-area tool/app-specific framework: MRR verification, churn analysis, technical audit, API dependency risk, and transfer planning
- Service Business Due Diligence Checklist, 8-area service-business-specific framework: client concentration, contractor structure, contract audit, pipeline analysis, and transfer planning
- Community Due Diligence Checklist, 8-area community-specific framework: engagement verification, revenue audit, platform risk, key-person dependency, and transfer planning
- Search Engine & AI Risk Guide, how to assess Google algorithm exposure before buying a content site
- SEO Red Flags Guide, backlink audit, Google penalty checks, PBN risk, and YMYL considerations
- Domain Name Guide, what to check about a domain before buying, brandable vs EMD, and transfer steps
- Aged Domain glossary entry, how to evaluate domain history, expired-domain risk, and SEO trust signals
- Analytics & Traffic Data Guide, what GA4, Google Search Console, and Ahrefs data to request and how to interpret it
- AI Tools for Post-Acquisition Growth FAQ, how to evaluate an AI-content site and which AI tools to use post-close
- Hosting & Technical Considerations Guide, hosting costs, migration steps, server-side due diligence, and domain registrar transfer
- Questions to Ask When Buying a Website, 70+ due diligence questions organized by stage with red flag answer guide
- How to Verify Website Revenue Before Buying, step-by-step guide to verifying revenue claims via analytics, payment processors, ad networks, and P&L reconciliation
- How to Find Undervalued Websites, identify compressed-multiple opportunities: algorithm-hit sites, absentee owners, and off-market deals
- 10 Common Website Buying Mistakes to Avoid, the most costly due diligence and deal-structure mistakes first-time buyers make
- How to Buy a Website Safely, buyer protection steps, common scam patterns, and how to use escrow and legal agreements
- Website Acquisition NDA Guide, the confidentiality agreement to sign before the seller shares their data room
- Website Acquisition LOI Guide, how a letter of intent structures the due diligence period and protects both parties
- Website Escrow Guide, how escrow works, step-by-step escrow process, holdbacks, and transfer day checklist
Common due diligence questions
- What is due diligence when buying a website?
- Due diligence is independently verifying the seller's claims about traffic, revenue, and legal ownership before you commit to buying. It covers analytics access, payment processor exports, backlink profile review, technical infrastructure, and IP ownership. See our full due diligence FAQ for the complete checklist.
- How long does due diligence take?
- Small acquisitions under $10,000 typically take 3-7 days. Mid-market deals ($20,000-$100,000) take 1-3 weeks, especially if you need a developer to audit a codebase or a lawyer to review the Asset Purchase Agreement. Never skip due diligence to close faster.
- What documents should I request from a seller?
- At minimum: read-only Google Analytics or Search Console access (12 months), revenue source exports for 12 months, a P&L statement, domain registration details, and any existing advertiser or affiliate contracts. For SaaS, also request subscriber data with MRR and churn rate. For deals over $10,000, request bank statements to cross-reference reported earnings.
- Can I do due diligence before making an offer?
- Sellers typically share summary data (GA screenshots, top-line revenue) before an offer. Full access usually follows a signed Letter of Intent (LOI), which signals serious intent without legal commitment, giving the seller confidence to share sensitive data.
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