Selling your website? There are ways you can go about it, and a few things you need to get right for you can sell it quickly and at the right price. In this post, we’re going to look at the information you need before selling your website, and how you can use it to accomplish your website sale to satisfaction.
So here’s how you sell your website, in 3 easy steps:
Table of Contents
Understand The Value Of Your Website:
The process of selling any business, websites included, begins with an understanding of how much it is worth. Through asset valuation, you can find out the monetary value of your website based on the assets owned in the form or products, traffic or customers. This will then form the basis for your asking price.
A website’s value is in most cases calculated as a multiple of its earnings. This is between 1 and 3 times the yearly earnings. For example, if your blog made $20,000 in the last year, then it is worth anything between $20,000 and $60,000.
Of course, you need your website statistics ready in order to do a website valuation. Keep in mind that while you might think that your site has immense potential for growth; buyers will still only value it on the basis of how much profit it is making. You may get a free valuation service from a website broker if you can’t do this value assessment on your own.
Preparation Of Sales Documents:
Armed with the stats, you can now sit down and work on several documents that will come in handy in the marketing and sales process. First, you’ll need to represent the statistical data – sales, income, profits, and expenses on a worksheet.
Next, prepare a sales memorandum. This is the most important document as it sums up all the information about your website, including traffic, revenue streams, profits, operational details, etc. Prospective buyers will study this document to have a grasp of the workings of your website, its financial viability and growth potential. In the preparation of a sales/information memorandum, you may also want to include quite a few questions that you think buyers will likely ask, and answer them appropriately.
Preparation also entails checking your legal position with the website, and addressing any legal complications that could arise. Look at the contracts and licenses – e.g. advertising contracts, web hosting contract, software licensing, content licensing etc., and make sure they are transferable to the new website owner. Trust me; ironing out the legalities will save you a lot of trouble when selling the website.
Know Your Selling Options:
Now that you have the documents ready and know what your website is worth, it’s time to enter the marketplace. There are many places you can go to and sell your website, but not all places were made equal. Let’s have a preview of 4 of the most established marketplaces:
Flippa.com – this is one of the well-know auction sites for web business and domains.
Websitebroker.com – websites listed for sale here will attract more serious buyers that on Flippa or EBay
Buysellwebsite.com – this site claims to be the #1 marketplace to buy and sell websites and domains.
Websiteproperties.com – this site deals with the brokerage of real internet businesses, such as an ecommerce website dealing with the sale of health supplements. Here, you’ll find established web businesses and domains for sale.
Hiring A Broker:
A broker can help you with your website valuation, preparations for selling, marketing and completing the sale of your website. Website brokers work on a commission basis – hence the appeal of hiring one – and the value they can bring can more than justify the cost. Hiring a broker to take care of the whole business of selling your site can save you lots of time and resources as they are generally better at negotiating top dollar deals.
You’ve heard of how Shane sold his website for $1m to Internet Brands. That should give you encouragement that your website can find buyers, even if it is worth only a fraction of the same. Shane sold his website for that much because of its revenues and growth prospects, and he surely must have taken his time to prepare for the visit of IB. In you want to sell you website fast, begin by understanding its valuation, adequately preparing it for sale and then choosing the best website marketplace that you think will serve you just right, or a broker to take care of all that business on your behalf.
This article is written by Tom Jones who also writes for www.valuator.com.au — Go here to learn more about what your website may be worth and what it may fetch when selling.