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Am I Really Going to Make More Money Using A Website Broker to Sell My Business?

Posted by Randy Rinon in Articles

You are probably leaving money on the table if you choose not to work with an experienced website broker, but many people are deterred by the fact that a website broker will take a fee in order to list your company for sale. However, this fee is well worth in the end if this person can guide you through the process and help you avoid many of the most common pitfalls associated with selling a website.

In fact, you could be leaving thousands of dollars on the table if you are not careful. If your site is already making a few thousand dollars per month, you’ll recognize that it could worth some money.

If you have already collected all of the basic information that might be necessary to sell your sites, such as monthly expenses, revenue, domain age, growth trends, the amount of time invested on the site, income sources, page views, and unique visitors, you are already looking forward to a big payday because you have come to the conclusion that you are ready to sell.

However, when attempting to sell your business website on your own, you set yourself up for potential mistakes. A website broker performs numerous tasks in the process of helping you value and list your company for sale. These include:

  • Aiding you with the gathering of information associated with the business valuation process.
  • Drafting a memorandum for the business when necessary.
  • Identifying an appropriate marketing strategy that will help attract ideal buyers.
  • Educating, interviewing and showing your website to prospective buyers.
  • Helping with negotiations when concerns arise.
  • Aiding with the process of due diligence.
  • Controlling the flow of information to prospective buyers.
  • Presenting you with offers.
  • Reviewing paperwork.
  • Protecting the confidentiality of the seller.
  • Assisting with the completion of the sale, such as funds transfer and final signing of the contracts.
  • Post-sale support.

Website brokers are involved in the entirety of the sales process. A broker typically does their own due diligence prior to listing a website for sale in order to verify that it can and will be sold in the current market.

After both parties have reviewed the paperwork collected by the seller, the seller than gives the final instructions for the broker to sell the site. Then the business broker gathers this information that will used to market the site and generate a competition between buyers.

Every broker typically has their own unique method of selling a website. This means that they have access to marketing channels your typical person doesn’t have access to, such as subscriptions to business classified sites and established network of people they know may be interested in buying your particular business, investment firms and more.

Furthermore, a website broker will be familiar with every aspect of your business and how that translates to underlying revenue for the sale. This means that a website broker can get higher multiples than owner listings or auction sites.

This is because the business broker has a more in depth review into what it takes to sell these companies and has probably had passed tractions and success in similar industries or with similar sites. A business broker makes it easier for you to sell your business so you can remain focused on the transition of your company to the new owner.