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What You Need to Know About Buying and Selling Websites

Reviewed By Jason Guerrettaz

Written By Vance Baker

Published May 9, 2019

Updated September 24, 2024

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What You Need to Know About Buying and Selling Websites

 

 

The digital age has created opportunities for people to pursue things that are related to their hobbies, skills, and interests. From affiliate websites to ecommerce sites, you can see that they’ve put in a great deal of work in building their online business and getting it to generate a steady revenue stream. 

Online business owners learned everything from the get-go, starting from building their website to learning how to optimize it for search engines and grow it. There will come a time, however, when the business owner will decide to move on from the venture and pursue other things. This will be their biggest question: “How can I sell my website?”

Why People Buy and Sell Websites

The website-selling market is changing fast, with more competition and opportunities than ever. With AI tools added into the mix, the potential to earn is bigger than ever.

So, if you’re wondering “How can I sell websites?”, your best bet is to work with a website broker who can guide you through each step.

In the past, website owners would list their domain for sale on an auction website. While this is still a choice available to you, it doesn’t really capture all of the necessary details to get the maximum revenue and profit from the sale of your site. If you want to truly know the value of your website, you need the help of professional appraisers who can look at every aspect that creates revenue and set a price on it.

Steps to Selling Your Website

We simplify the whole website selling process in these five steps:

  • Know its current worth. You want to get your money’s worth from a project you’ve worked so hard on. This step ensures that you won’t be selling it below the price you deserve.
     
  • Optimize and make some aspects of your operations autopilot to increase their value. Hire virtual assistants to do the legwork and integrate AI tools to automate repetitive tasks.
     
  • Get help from website brokers like WebsiteClosers.com, Flippa, and Empire Flippers to look for interested buyers.
     
  • Prepare your website’s statistics by downloading reports from tools like Google Analytics. Also include financial reports that showcase the website’s net profit, monthly revenue, and 12-month analysis.
     
  • Market your site for sale by listing it on website marketplaces.

Evaluating a Website’s Worth

Among the most important steps before you list your websites for sale is to know their prices. The quick way to determine the sale price of a website is through free value calculators online. But remember that the result is just a ballpark estimate.

The true value of your website involves more factors than a simple calculator can measure. An appraiser has all the necessary experience, tools, and knowledge to determine a price from the following aspects:

  • A website’s business model shapes revenue potential and growth prospects. 
  • Diversified income streams are vital for stability. 
  • Growth opportunities are looked into by potential buyers to determine expansion possibilities and market outlook. 
  • The domain name impacts a website’s value. A broad, flexible domain offers more growth potential. Common top-level domains perform better as well.
  • Site health, including SEO, user experience, and site speed, influences value. 
  • Industry trends and competition provide context for determining a website’s market position and future potential.

What You Need to Know Before Buying a Website

“How can I buy a website?” may be the first question in your mind, especially if you prefer not to build a website from scratch. Purchasing an already profitable website can be an attractive option, especially if they’ve saved enough during their time as an employee and are ready to take on the challenge of business ownership.

Before you go all in on that website business you saw, take a moment to think about one major consideration: the goal behind purchasing the website.

Are you aiming to boost traffic, build more backlinks, or expand your audience? Clarifying these goals will guide the kind of websites you consider, shape your evaluation process, and influence your budget, among other important factors.

Key Factors to Consider When Buying a Website

Before you commit to buying an existing website, review this checklist.

• Traffic. Is it attracting audiences through keywords relevant to the niche of the website?

• Types of websites it falls under and its monetization models.

• Content quality.

  • Depth
  • Originality
  • Freshness
  • Human-written

• Tech stack

  • Licenses and their corresponding costs.
  • CMS
  • Code
  • Does the domain auto-renew?

• Social media reach. Are the website posts being shared on social media?

• Revenue. What are its revenue sources?

How Can I Buy a Website?

The quickest way to look into what’s available is by researching website marketplaces like Flippa, Website Closers, and Empire Flippers. But not every buyer isn’t comfortable with listings. Hiring internet business brokers like Website Closers will ensure that you are matched with a business owner who shares your goals in further growing the online business.

Due Diligence in Website Transactions

Website due diligence is a process where the buyer verifies whether the seller has provided accurate and complete information about the website’s performance, assets, and potential risks. The items in the checklist we’ve provided above are part of the assessment process during due diligence.

Aside from the digital property itself, the buyer will also check all the legal documentation to see whether the business is compliant. Finally, the financials will also be checked so that the buyer can determine if the financial documents are clean, updated, and organized and if the promised earning potential is indeed realistic.

The best marketplaces to look for websites to purchase are on this list:

  • Website Closers
  • Charles Schwab
  • Empire Flippers
  • Motion Invest
  • FE International
  • Investors Club
  • Quiet Light
  • BizBuySell
  • Flippa
  • Acquisitions Direct

Common Pitfalls to Avoid When Buying a Website

When on the quest to purchase a website, don’t fall into these common traps:

  • Going for a website with a price beyond your budget. You may have interest and expertise in the niche of the website, but it can be catastrophic to your finances if you push through and do not end up buying it. If the deal falls through, you could end up wasting time, effort, and money.
     
  • Focusing on how the website performed in the past. Remember that the site’s potential rests on your shoulders once you purchase it. Instead of fixating on every detail in the financial report, aim to balance your assessment with a focus on its future potential.
     
  • Neglecting to clarify training needs can be a major pitfall. To thrive with your new site, gather extensive information and support from the seller, as they hold crucial insights beyond financial data.

The website acquisition market is shifting with several notable trends. Relying on a single sales channel is becoming obsolete; instead, successful websites leverage multiple platforms like Facebook, Google, and social media to expand their reach. 

This multi-channel approach is complemented by the rise of omnichannel marketing, which ensures a consistent user experience across all touchpoints, whether on the website, social media, or physical stores.

Moreover, mobile commerce is surging, with over half of traffic coming from mobile and mobile sales constituting nearly 73% of ecommerce transactions. 

For any type of revenue-generating website—be it an ecommerce, affiliate, or SaaS platform—ensuring mobile optimization is crucial. This includes having a responsive design, quick load times, and potentially a mobile app to enhance user engagement. Adapting to these trends can significantly impact a website’s value and appeal to potential buyers.

Taking shortcuts and not getting the support you need from knowledgeable brokers like those working at Website Closers could end up limiting your ability to recoup as much as possible in the sale of your business. 

You deserve to have a clear understanding of all the steps that are involved financially and legally. This is just one of the many ways that a business broker can help you, including assisting with complex contract negotiations. Schedule a consultation today with our business brokers working at Website Closers to learn more about buying and selling websites. We know we can help you get the best price when listing your company for sale.

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