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Laying out hard cold cash for a very ethereal concept like a domain name can be a daunting proposition. Once you’ve decided that you’ll invest in a domain based upon traffic statistics you will soon discover that there are a number of risks and ways of hedging those risks.
 For a start, many people purchase traffic domains based upon either screen shots of statistics, a spreadsheet of data or some sellers provide access to the parking account where the domains are generating revenue. The purpose of all of this is to help verify that the statistics are real to provide confidence to the buyer that all is good.
All these mechanisms do is help ensure that the numbers have not been forged at the generation phase but they don’t bring any confidence into whether the numbers are sustainable. For example, I could advertise to increase a domain’s traffic. After four weeks or so I could sell the domain with higher traffic figures and after I’ve received the money for the sale shut off the advertising. In fact, rather than just shut it off completely I could decrease the advertising across the next couple of months.....after all I want to keep my reputation in tack to do the whole trick again and again.
Let me say right up front that this is fraud. Selling a domain that has had its stats manipulated for the sake of an increased price where the seller knows that this is not sustainable is committing a fraudulent act. If you have ever thought about doing this then stop right where you are and ask yourself a very simple question, “How much is my personal integrity worth?” It’s not often in life you are able to put a monetary value on integrity and this in one of those times were it’s very easy.
To help overcome fraud related problems I have a number one rule. The stats will be right if the domainer is right. In other words, get to know the seller and ask yourself the question, “does this person feel right?” If they do then continue on with your discussion but if they don’t then go to the next deal.
Don’t fall into the trap of thinking that this deal is so good that I can’t possibly lose. These are often the deals that burn your fingers. Learn to trust your instincts, if something doesn’t smell right about the person I can almost guarantee that they aren’t telling something about the numbers. There will be other deals and other sellers. I’ve been in business for many years and one of the things I’ve learnt is how to walk away if things just don’t feel right.
One of my business partners in ParkLogic is absolutely crystal clear on this issue. I know that in past business dealings he’s walked away from potentially huge deals because he’s discovered the integrity of the person we were dealing with was in doubt. Life’s too short to be dealing with people with people you don’t like.....so just don’t deal with them.
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