Buyers today tend to fall in three main brackets when showing interest in purchasing a website. Selling your website could be something you are interested in if you have put in a lot of leg work to build up revenue of the company and are now looking to move into a new opportunity. Having a clear understanding of the different types of buyers on the market can make it easier for you to choose the right website broker to list your company with.
The first category of website buyers are private investors.
These could be partnerships, small teams, or individuals. These could also include buyers who are looking for extra income from an already established business to supplement their job. Individual buyers could also be looking for a way to make more money in general or to use the business to replace a job they already have.
For these buyers, financial performances are not always the most important metric considered. In fact, these businesses could be acquired based on personal interest and the buyer could be focused on the happy process of doing the work to improve the company that has already been established.
Private Equity Funds
The second category of online website buyers are private equity funds. These funds have been entering the online market consistently over the last decade and are becoming more and more sophisticated and involved in the process. These are generally created on the principal that they will raise money from several different private investors, pool it together, buy a business, and then run it to deliver a return to those investors. The funds will vary in the set up for this structure.
Financial performance is one of the most important factors considered for private investors contemplating purchasing your business. Many private equity funds also tend to specialize so it would be hard to find a fund that uses numerous sizes of businesses with completely different business models. Instead you might be able to find a niche fund that has experience in your area, interested in purchasing your company.
The third category of online website and business buyers are strategic buyers. They usually have an investment or an existing business in a complementary or similar niche and can look at acquisition of your online company as an opportunity to enhance their existing assets. Furthermore, these buyers are focused on the benefits of the economies of scale and the synergies in at least two businesses. It can be difficult to pin down a criteria used by a strategic buyer to decide whether or not to make an offer on your company.
Many of the reasons for a strategic buyer to make an offer are not always financial. They could be interested in advertising partners, your email list or the existing team rather than the underlying profitability of your company. This means that you must be prepared to list the company and market it effectively with these details in mind. Understanding your target market could mean speaking with an experienced business broker about how best to prepare your company for online sale.
As a website owner or someone who does business on Amazon FBA, you already know how much reputation matters.
One bad review online can haunt you for years, leading people who might otherwise have done business with you to decline the opportunity. This mentality about the importance of social proof and reputation is something you should keep in mind as you plan to work with a business broker, too.
The truth is that not all website brokers are created equal. Some use flashy ads to draw in business or focus on that one big sale they made last year. But is that enough for you to trust your enterprise and website to? Don’t you want to work with website brokers who have been in this industry for many years and have made a living with a good reputation on top of it, too?
The Right Website Brokers
A broker plays a big role in the sale of your company. It’s about so much more than pulling together the research for a valuation. Instead, a website broker takes a look at the big picture of your company and keeps this in mind as they prepare a strategy for you to sell.
Reputation matters more than ever when deciding to partner with a website broker. This person should be someone you trust with your company and the entire process of the sale.
At Website Closers, we like to think we are only successful if our clients are, too. That’s what we bring to the table every time that we set out to work with someone new. You can tell exactly how much we’ve worked with our past clients and what the process is like by looking at our reviews.
We often find that our clients are thrilled about our reputation because they know that we understand this process.
We are familiar with what it takes to get through the whole process of listing your company all the way through to the sale process when the new seller takes over the company. From due diligence through signing the final paperwork, there will be plenty of questions you have over the course of this process.
The reputation of who you choose to work with is crucial for you to have the least amount of stress in the sale.
When evaluating possible website brokers to work with, ask for testimonials and references. Most companies who have been involved in selling websites have plenty of successful sales and can likely point you to an entire page of positive feedback.
You also want to know the broker’s reputation in the individual industry- have they sold sites like yours before, and are they familiar with common concerns expressed by buyers in that industry? Do they know what it takes to list the site and to have qualified buyers prepared to step in and make the purchase?
All of these questions should be things that you think about when trying to decide who to work with. This person and team will be involved in your life from the moment you hire him or her, so your choice makes a difference. Select someone with the right reputation.
There are many different benefits to selling products online, which is why more and more people are turning to this as a valuable way to earn consistent money. But in making that initial decision about where to list your products, it can be difficult to decide what’s truly in your best interests.
Deciding the Right Route for Your Business
One of the first decisions you’ll have to make is about whether or not to use a marketplace or to sell over e-commerce. The term online selling is a very general one. New sites for selling by e-commerce seemingly pop-up every single day and selecting the right place to list your products for sale can seem daunting.
Some merchants might choose to build their own website or to establish credibility by working with a marketplace that already has the traffic. Your own website would include installing on an e-commerce platform such as Magento, Shopify or Woo Commerce.
A marketplace, however, is a third party site that uses product listings from numerous sellers across product categories. Some of the most common examples of these third party sites include Walmart, Etsy, eBay, and Amazon.
Is There A Real Difference Between E-Commerce and Marketplace Sites?
The primary differences between choosing to sell an e-commerce site versus a marketplace are relatively simple.
One of the biggest reasons why people select marketplaces is because millions of visitors are instantly available to you. However, because of this great possibility to be visible, you will also be fighting with thousands of different sellers in order to be seen.
An e-commerce business is one way to differentiate yourself, but you have to put in significant effort in order to drive sales and send regular traffic to your site.
What Are Marketplace Benefits?
There are numerous different benefits to selling on a third party marketplace. First of all, it’s simple and convenient to get started as well as to maintain a presence here. The payment and transactions are often handled by the marketplace itself, which means that your primary job is in adding and modifying product listings so that they are as compelling as possible. There are many different visitors who probably already made purchases on these third party websites. They are highly trusted and very well trafficked places to visit. Since many of these marketplaces are household names, they have plenty of different shoppers who are looking for products just like yours. This means that although you have enhanced competition to get your products in front of your ideal customers, you will still not have to put forward as much effort as if you were having to drive traffic to your own website. There are, of course, downsides to selling on a marketplace like an Amazon FBA. First of all;
No matter how you choose to build your e-commerce business, such as using Amazon FBA or other tools, it’s a good idea to have a consultation with an experienced website broker like those working at Website Closers when it comes time to sell your business.
Are you interested in selling your e-commerce company, but you are not familiar with the process that you need to consider? Selling any e-commerce company doesn’t have to be difficult when you retain the services of a business broker. But the first decision that you’ll consider in this process is whether or not to sell your e-commerce company via a marketplace or a website.
There is no doubt that there are many different benefits to selling products online, which is probably what drew you into the process of doing it yourself. Reaching more customers than a traditional brick and mortar store and being able to sell at all hours the day greatly expands your potential to make profit. There are so many different e-commerce options, and as a result of that, people are looking to cash in and tap into the power of selling on an e-commerce website. Some merchants must consider this initial decision of selling on their own websites, such as an independent e-commerce website or selling through another company like Walmart, eBay, Etsy or Amazon. Determining what is most appropriate for your business involves thinking about the benefits and downsides of each.
There are many different advantages to selling on a third-party marketplace and this is a top reason why plenty of sellers use this option. First of all, it is simple to get started and maintain a business when launching on a third-party marketplace.
An online marketplace can simplify the process, particularly for new sellers. This is because the infrastructure is already established, and this saves the hassle and time associated with building your own website from scratch. Since no one individual seller owns an online marketplace, the payment and transaction details are handled by the marketplace.
This removes a lot of things from your to-do list and can make the process easier overall. Since many of these marketplaces already have established forms of traffic and plenty of people visiting their website, there are millions of shoppers already leveraging them to find the best deal. You can make an impact by tapping into the power of the traffic already established on the marketplace.
There are downsides, however, to selling on a marketplace. Since there are multiple competing brands on the same site, you must always be aware of how to stand out from everyone else who is trying to accomplish the same goal of stealing their market share. Your competitors might target shoppers who visit your individual listing and then place advertisements for their own products on your pages.
Whether or not this impedes your ability to do business, depends specifically on the competition intensity in any product category, which means that you might not get the easy sales or exposure that you are intending. Furthermore, people who purchase your products might never realize that you, as the third-party seller, truly exists. Most people who shop from these marketplaces, such as Amazon FBA, assume they are buying from that marketplace, even when it is relatively clear that they are purchasing from a third-party seller.
Because of these disadvantages, it is important to realize that you might want to do some additional steps to build a niche site and create your own brand awareness.
Have you ever been involved in website sales in the past? Even if you’ve previously sold a website, it’s a good idea to engage with an online business broker to help you. Websites sales techniques evolve quickly, and you want someone who is thoroughly practiced.
Finding the right broker is the first thing you should do after exclaiming “I want to sell my website business!”
Website Sales Post-Valuation
If you’re ready to put it out there search “how to sell my website business”, it’s a smart move to get a valuation done first. Your online business brokerage can help.
If you’ve already completed the website valuation and are curious about how to sell and e-commerce site, a website brokerage can assist you with this process. An Internet business brokerage will be highly knowledgeable about protecting you interest and insuring that you have considered all of the various aspects that a prospective buyer will consider.
The Internet business brokerage you choose should also be knowledgeable about people in the field who may be a perfect fit for you when you sell your website. When it comes to selling an e-commerce business, you need to think like a buyer in order to prepare to sell your website.
Website Sales Factors Buyers Want to Know Before a Purchase
Buyers consider numerous options before purchasing someone else’s website.
Particularly if you intend to get some kind of high paying advertisement that converts into sales, or a sponsored review, domain authority matters significantly. Finding a high domain authority site can also tell you that the website is already well optimized, making it easier for the buyer to step in quickly.
Make sure that your site is well optimized before listing it for sale. Website sales are much easier when you can show that you have solid domain authority. It will be much easier to sell your website when you can show it’s quite popular already.
A website may rank for the wrong key word and lead to a lot of traffic, but these wrong ranking key words will not ultimately lead to a sale.
When you are curious about how to sell a website, your Internet business brokerage may be able to walk you through the steps you should take for appropriate key words in advance. These are crucial when you intend to sell a website and will help with your website valuation as well. If you’ve already done the legwork for website sales by showing a keyword ranking report, more buyers may be interested.
When most people think about beginning their online business, they are not concerned about the look of the site. But as any website brokerage can tell you, buyers want to be pleased with aesthetics and will consider the overall look of your website. Website sales, however, could hinge on design elements.
Website design has multiple impacts because it provides the foundation for the overall consumer experience and serves as the brand for the site. Any savvy website buyer will be interested in the website design. Even though there are minor customizations that can be made after the fact, website brokers often find that thoroughly designed websites can make a big difference in bringing up a valuable buyer sooner rather than later.
Make sure that if you choose to sell an Internet business or an e-commerce site that you have a website brokerage who will give you an overview of the process from the beginning.
If you’re curious and searching for “how to sell my website business”, you’re in the right place! We can help you with all aspects of your website sale.