Are you interested in selling your website and receiving a handsome profit based on the leg work you did in advance? There are two tips you need to keep in mind that have emerged after we have worked through thousands of sales as successful business brokers.
Viewing Your Website with A Long Term Value
A website in and of itself is not as valuable in the present moment as it is potentially over the long run. The typical sales price of a successful website can be as much as 10 times its profit on a monthly basis.
All this can seem like a significant number especially for a website that already generates several thousands of dollars every single month, this is only one small portion of the value that is typically assigned to an offline business.
Rather than thinking about the short term revenue picture for your website and the monthly profit that you bring in from it, expand your thinking when preparing to list your online business for sale.
Although your business will go through the process of establishing a business valuation and that valuation will also reflect the website’s long term value, this is the same concept that can be applied to your individual websites too. Think about the potential of your website’s growth over time.
If you are attempting to sell a site that has a growing search presence drawn from organic traffic or is extremely popular on social media, this is an indicator of early value. This means that looking at your revenue growth potential over time gives you an opportunity to improve the value and price your business accordingly.
Understand Your Buying Audience
In addition to getting a long term picture of the true value of your online business and website, you have to think specifically about your ideal target audience. The more zeroed in you are on this specific issue, the easier it will be for you to sell your online business to someone else who wishes to step in and take over.
Using the same tactics for very different audiences can be catastrophic for online business. All too often, this is one of the biggest errors applied to website sales.
Just as you would use different sales tactics and every other method of selling different products, different tactics must be used to sell different kinds of websites. This is where it’s helpful to retain the services of an experienced business broker, who can advise you about the strategies you should use when selling your own online business.
Asking your business broker about his or her past experience working in this particular field or selling websites like yours will give you some confidence about the strategies selected by him or her to sell your website.
Today, people who are interested in purchasing a website greatly value information about profit and revenue far more than anything else. Information for your website, however, could shift a buyer’s interest into your website’s potential for growth over time.
The more clearly you can articulate this in any necessary documents about your possible business growth, the easier it will be for your to convey significant value and the possibility for another person to take over and gain significant benefit from serving as the head of the business.