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Website Valuation

Posted by Remy Belanger in Articles

Today’s segment is going to target website valuation. Many times, business owners will call us in the hopes of selling their website, but need to first get an understanding of market trends, valuation and to develop a timeline to sale.

On Market Trends, is owned and operated by eCommerce professionals that have achieved mid-market status. The owners are embedded into the fabric of the eCommerce community and have a great deal of knowledge regarding the ins and outs of website ownership, and can quickly understand the pros and cons of a website. We look at things like Search Engine Optimization, Social Media signals, Pay Per Click opportunities with comparison shopping and search engines, and more. These skills will not only help the business owner understand her options, but this knowledge will help educate potential buyers on the value of the business as well as opportunities for future growth.

On valuation, there are basic multiples used by most brokerages in Online Business Sales. These multiples can be affected by a number of business attributes, like Year over Year sales trends, the age of the business, organic search results, whether the business is or operates under a brand or exact match domain, and social media signal development. Also, whether a business utilizes a drop ship, inventory hold or hybrid inventory model will affect the final sales price. Together with, business owners will pull every string and maximize a value added approach to identifying what the market will bear.

It is worth noting that regardless of what valuation we place on your business, we pride ourselves in listening to our clients and moving forward only when they are 100% comfortable. If a client is not satisfied with the multiple we arrive at, we will agree to either list it at your hopeful price, or we will walk you through our thoughts on things you can do to increase your multiple and maximize your selling price. We’re in it for the long haul with Sellers and are in no hurry – we are business owners ourselves and understand that selling a business can take time and patience. We operate on our clients’ timelines, not ours. We are here to listen.