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4 Things To Do First Before You Sell Your Website

To get big, you have to say goodbye to business ventures that have already been successful, to set up something even bigger. There are many entrepreneurs who build successful online businesses from scratch, only to sell them to the highest bidder. Why would anyone sell a business that generates a steady stream of income? Well, there are many reasons, and in some cases it can actually be a smart move. By cashing in, entrepreneurs can free up time that would otherwise be spent managing the businesses they sell. Selling a website also protects you from the unpredictability of the future and harmful market trends. However, the most common reason to sell an already profitable online business is to gather the seed money to start something much bigger.

If you are looking for a buyer for your website, the following 4 tips should help you.

4 Things You Should do First Before You Sell Your Website

1. Never Underestimate the Importance of a Good Business Broker

One of the biggest hurdles in selling a website is finding the right buyer. If you’re not an experienced website flipper, it’s very unlikely that you’ll have the contacts to close the sale quickly. Business brokers who specialize in website sales have a network of buyers who are interested in your website niche. When you contact an agent, you will also get access to several offers, which will increase your chances of bagging a good deal. Website brokers also broker the deal to ensure a fair transaction and can help you with the valuation.

Sell Your Website

2. Cut the Fluff, Talk About Things that Buyers Really Want to Know

If you have ever seen an episode of “Shark Tank”, you already know what we are getting at. People who want to invest in your company or buy your company are interested in the numbers that matter. You should know the important numbers by heart. For example, you should be able to tell how much your website earned last year after taxes. You should also know the product prices and profit margins associated with each item on your site.

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Buyers are also interested in the growth figures, so you should know how fast your business has grown in all the years it has been in business. Potential buyers are also interested in the likely time frame in which they are expected to break even. Make sure you have this estimate and back it up with realistic numbers and growth figures. Be sure to talk about the target market and the industry growth rate when listing or pitching your website.

3. Make Sure Your Website is Properly Optimized

Nobody wants to buy a website that is still in progress and not properly optimized. Make sure that your website is SEO optimized to reach its full potential. If your business is not optimized, you should put the idea of selling your website on hold for a while. Instead, focus on digital marketing tactics that can increase your sales. Ideally, your site should be at the peak of its business potential when you start looking for buyers. Especially since buyers are often more interested in knowing how your business is doing now than in future projections and past glories.

Sell Your Website3

4. Know How to Price Your Website Correctly

The valuation of your online business depends on three main things: its assets, its current cash flow and income, and how much it is expected to grow. Another important factor that contributes to the selling price is the demand for the website you are trying to sell. If you are selling through a business broker, they will probably offer valuation services. However, it’s important that you know the basics.

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First, look at other websites that are similar in scope and nature and find out how much they paid for them. Business broker sites usually display data from previous sales, and you can use these prices as a reference point to correctly evaluate your site.

Another important factor that contributes to the price of a website is the age of the company. Even if their monthly profits are identical, an online business that has been running successfully for years is likely to be valued higher than a website that has just started. Buyers usually multiply the monthly net income by a number to arrive at a price.

This number indicates how many months it would take to get the money back. For a new site that has just gotten lucky, this number as low as to 12. So if the site makes a monthly profit of $500, the owner may be offered a prize of $6,000. However, if the site is several years old and generates the same monthly income, the asking price can be twice as high.