❓ FAQ: What Exactly Is Due Diligence, and How Is It Different From a Marketplace Review?

❓ FAQ: What Exactly Is Due Diligence, and How Is It Different From a Marketplace Review?

What is Due Diligence used for?

Due Diligence is the process of verifying the true condition, performance, and risks of a digital asset before buying it. It protects the buyer from:

  • Overpaying
  • Hidden expenses
  • Manipulated metrics
  • Technical risks
  • Founder dependency
  • Traffic or revenue inconsistencies
  • Operational problems that only appear after the acquisition

In simple terms: Due Diligence tells you what the asset really is, not what the seller claims it is.

How is Due Diligence different from the review provided by the selling platform?

Marketplace reviews are surface‑level checks. They confirm what the seller submits, but they do not verify the underlying truth.

Marketplace Review (Typical):

  • Checks screenshots
  • Confirms the seller uploaded documents
  • Verifies basic identity
  • Reviews simple financial summaries
  • Ensures the listing meets platform rules

This is not an audit. It’s a compliance check.

Due Diligence (Real Audit):

  • Verifies raw traffic sources
  • Analyzes Quality of Earnings (QoE)
  • Detects hidden expenses
  • Reviews operational viability
  • Checks technical dependencies
  • Validates revenue with raw data
  • Identifies risks the platform does not test for

A marketplace review protects the platform. Due Diligence protects you.

Why isn’t the platform’s review enough?

Because platforms are incentivized to close deals. They do not:

  • Audit code
  • Audit APIs
  • Audit churn
  • Audit founder dependency
  • Audit operational workload
  • Audit real profitability
  • Audit long‑term sustainability

They only confirm that the listing is “acceptable” for publication. They do not confirm that the asset is a good investment.

So what does Due Diligence give me that the platform doesn’t?

  • A clear picture of true profit
  • A realistic view of workload
  • A breakdown of risks
  • A valuation based on real numbers, not seller claims
  • Leverage to negotiate the price
  • Protection against overpaying
  • Confidence that the asset is operationally viable for you

Due Diligence is not a formality. It’s capital protection.

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