At one point or another, most people who run online businesses consider selling their web empire.\u00a0 And selling a website can be quick, easy and profitable.\u00a0 Or it can be frustrating, confusing and not profitable.\u00a0 As someone who has sold more than a few websites, all in under two days and some in less than an hour, here’s my frank advice on how deals get done.<\/p>\n
First up is the valuation of your website<\/strong>.\u00a0 That means figuring out what it’s worth.\u00a0 And this is where most people totally screw up.<\/p>\n Let’s say John has a website that generates $1,000 a month is sales.\u00a0 The site has a PageRank 5.\u00a0 It has 10,000 visitors a month and is ranked well for many of the keywords in it’s market.\u00a0 John also thinks the site has great potential.<\/p>\n In the brick and mortar business world, businesses are typically valued at 3 times yearly sales.\u00a0 In John’s case that means his website would be valued at $36,000 ($1,000 a month is $12,000 a year…times 3 equals $36,000).<\/p>\n But since John’s website isn’t a brick and mortar business, it’s all 100% online, his business is actually valued very differently.<\/p>\n First let’s take the PageRank and traffic and Google rankings.\u00a0 Those might help make a buyer be more interested in the site versus another, but they add zero to the dollar value of the website.\u00a0 That’s because those things can disappear overnight.\u00a0 And John’s thoughts of “great potential”?\u00a0 Absolutely worthless.<\/p>\n The only thing that matters is the net monthly profit<\/strong> for the website.\u00a0 In John’s case, although he has $1,000 a month in sales, let’s say his net monthly profit is only $500.\u00a0 You then multiply that with a number between 8 and 12.\u00a0 In John’s case, that would come out to $4,000 – $6,000.\u00a0 And that’s what John’s website is worth…between $4,000 to $6,000 dollars (sorry John, it’s not worth the 36 grand your unemployed brother-in-law told you).<\/p>\n Now there are always variables and wildcards that might come into play, but typically in the real world of buying and selling websites, a websites value is between 8 and 12 times monthly net profit<\/strong>.\u00a0 So now you know what you’re website is realistically worth…but where do you sell it?\u00a0 Here are the 3 primary ways:<\/p>\n 1. Brokers\/We Buy Websites<\/strong> – First up is brokers.\u00a0 They examine your website and financials and present your website to potential buyers.\u00a0 If a sale is made, they typically pocket 10% of the sales price.\u00a0 But because brokers work on commission, they typically only deal with websites valued in the six-figure or higher range.\u00a0 If your website is worth that, brokers can make the process of selling your website relatively turn-key.<\/p>\n “We Buy Websites” types of businesses are the equivalent of people who stick signs on the side of the road that say “we buy houses”.\u00a0 Type “sell your website” on Google and you’ll find plenty of these folks.\u00a0 These guys are flippers…they buy websites and then flip them for a profit.\u00a0 As a result, they prey on the desperate and uninformed to get dirt cheap prices for websites.\u00a0 And some of these places have ulterior motives beyond just flipping (like finding untapped niches).\u00a0 In a nutshell, avoid these places.<\/p>\n 2. Direct Buyers<\/strong> – This is where you sell\u00a0 your website to someone without having to go through a third-party.\u00a0 Maybe someone contacts you and asks to buy your website.\u00a0 Or maybe you contact other website owners in your market.\u00a0 Or maybe someone tells you about someone else who might be interested in your site.<\/p>\n But more often than not, direct buys happen through forums.\u00a0 And the major forums where the action takes place are Digtial Point<\/strong><\/a>, Sitepoint Market<\/strong><\/a> and the Warrior Forum<\/strong><\/a>.\u00a0 You do a post about offering a website for sale and then people contact you for details.\u00a0 It can be a great way to find legitimate buyers for your website without having to tell the world what your domain is (you reveal it to people only after they have contacted you and seem legit).<\/p>\n The downside is it’s also a great way to invite the worst the Internet has to offer into your life.\u00a0 You can end up feeling like a car salesman, where people waste your time, tell you they are interested but then disappear or go as far as working out all the details of the sale…only then to drop the bomb that they don’t have the money.\u00a0 Flippers also patrol these forums, so you typically want to stay away from any posts that say “Looking to buy websites…”.<\/p>\n 3. Auctions<\/strong> – There are lots of auction sites where you can sell your online business, but honestly, the only one worth your time is the 800 pound gorilla Flippa<\/strong><\/a>.\u00a0 With Flippa, you can list your website for sale starting at the cost of $19 (or you can pay more for a more prominent listing, which is usually well worth it).\u00a0 You can set a reserve price and buy it now price.\u00a0 And then people bid on your website, just like any other auction.<\/p>\n