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As the seller of an online business, the more you can approach this process with the big picture of what it might look like from the buyer’s perspective, the easier it will be for you to craft the perfect valuation, online listing, and begin to work with a knowledgeable business broker.

You might have already built your business from the ground up because you started from scratch, doing things like figuring out your niche, the ideal product still listed on your Amazon FBA business, driving traffic to that site or to a website, or building an email list and marketing to it. Of course, it probably took some time before your new online business was profitable.

What Are Buyers Looking for When Buying an Online Business?

Many buyers are of the impression that they are buying a complete business with customers and products, proven marketing methods for generating leads, a presence on social media, an email list, ongoing ad campaigns and sometimes even contractors or virtual assistants.

These buyers are often looking for a turnkey opportunity that they can step in and take over, which means that they can begin running it as it was or make some changes in the effort of increasing profits. These buyers are also looking for companies that have a track record of profits and sales that can be seen before the business is purchased. This is accomplished in the due diligence process when the buyer looks at the financials.

Buyers are often encouraged not to rely only on the material presented to them by the seller. The possibility of a company being a big money maker is not the only reason why someone is interested in purchasing a business. Overall, these buyers must also have at least some level of interest in the niche in order to continue remaining successful

Training Opportunities

After the business is listed for sale and the due diligence process has begun. There are other things in the back of a business buyer’s mind, such as whether or not he or she can easily step in to that turn-key company. These buyers want to engage in shortcuts and many of the expensive and time-consuming tasks that they put into building your business before it becomes fully profitable.

Very successful sites will come with a high price tag, with prices in the tens to hundreds to thousands of dollars, or even up into the 7 figures. Buyers are also looking for things such as a good domain name, a large amount of quality website traffic and possibly even a large email list of responsive names. But they also want to know that there will be appropriate training provided to them to enable them to be as successful as possible when they step into the business. This can be very complicated for a buyer who is looking to exit his or her company as soon as possible.

Such a seller should have done all of the work in advance and have training manuals and standard operating procedures ready to be explained to the new buyer. Even when you are ready to step out of this situation quickly, you will need to be fully prepared to remain involved for at least a short period of time during the training phase. This can be an important component of the process of solidifying the deal that you have done with the buyer, and the more that you can show about how that training process will be accomplished in your early legal documents, the easier it will be for the prospective buyer to feel confident about their choice.

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.

Due diligence is a crucial aspect of selling your online business. Whether you are the buyer for an online business and are contemplating backing up all of the materials that the prospective seller has already shared with you, or if you’re thinking of listing your own online business for sale, you need to familiar with the due diligence.

Due diligence is one of the later phases in selling an online business. This comes after the letter of intent has been agreed upon and signed. This then initiates the due diligence phase of the deal. This is an exclusive period in the business deal in which you are unable to offer your business for sale to any other buyers.

The purpose of due diligence is to verify any of the claims that you previously made about the business. This makes it all the more important to ensure that your financials are up to date and accurate before you even list your company for sale because all of this information will be thoroughly checked. You must be honest during this phase, such that due diligence confirms the prospective of a buyer who is already interested in purchasing your company.

If you have shared that you have made a certain amount of money, for example, due diligence is the phase of the business purchasing process in which that individual will look through your financial statements to verify that this matches up with what you have previously claimed.

At any time during the due diligence phase, you need to recognize that the overall value of the business or the original offer that a buyer submitted could be reduced greatly if the buyer notices problems with the company. For example, if a buyer digs into the financials and other details during the due diligence process, they might find that some of the inventory was stored for a long period of time, or that a relationship with a key supplier is holding the business together.

If there is the possibility for devaluations as a result of these problems, a buyer is well within their rights to factor in a lower price than what they originally offered or were willing to pay to adjust for the risk they have discovered during due diligence.

There are many different things that might be requested for a due diligence process and as the seller of your online business you should be prepared and have these organized well in advance.

These are likely materials you already gathered during your own business valuation, and include:

  • Staff lists
  • Interviews with staff
  • Merchant statements
  • Bank statements
  • PayPal account statements
  • Staff contracts
  • Supplier contracts
  • Sub-contractor contact information
  • Customer lists
  • Source codes
  • Credit card processing statements
  • Business processes and systems overview
  • Historical and current tax returns
  • Balance sheets
  • Interviews with customers

An online business has a different due diligence process than a brick and mortar company, which means that you must be prepared for the reconciliation of bank statements with your online business and the overall value of the traffic on your site. Consult with an experienced business broker to get more support.

Are you thinking about investing in other tools to help you grow your Amazon FBA business? Whether you’re currently attempting to gain traction in the market for your own purposes or are thinking about the end game of selling your Amazon FBA business, it makes sense to invest funds that can help to drive traffic to your site.

This should always be done in addition to the organic work you have done to bring in sales through other means. Having an optimized listing, for example, will help you to bring in organic sales. Doing plenty of price testing will tell you the ideal price location for your current strategy and will allow you to tweak and test as you go along.

Although relying on a pay-per-click or advertising strategy can be beneficial, it should not be the only method through which you attempt to grow your Amazon FBA business. In this blog we’ll go through the basics of defensive ad spending. In some cases, your product might already be performing well in the Amazon algorithm or if you already have enough brand recognition that leads people to directly search for your products or your brands, ads can be a defensive measure to help protect the corner of market share you have already begun to own.

On any given page in search engine results or on Amazon directly, there are a limited number of ad spaces available. This means that when a shopper is searching for a product, there are only so many opportunities for them to see an item. You might already have beneficial organic positioning for your ideal products, which could lead you to believe that you don’t need to invest any further money in advertising at all.

However, thinking this on its own could be a big mistake. Aggressively advertising and using ads in a defensive manner could help to suppress the competition and ensure that someone else’s product directly competing with yours, does not appear on this page.

Furthermore, this will greatly enhance the probability that your product is selected. The focus of your defensive advertising spending campaign may not be on directly profitable spending. Instead your focus is about enhancing the overall performance of your product by dominating the limited space available within the advertising arena.

If you already have several key products directly related to a search term, you can help to influence the overall shopping decisions made by a person who is seeking that item already by enhancing the already firmly established visibility for your brand.

If you’re already driving good traffic and have great reviews for your Amazon FBA products, holding multiple ad locations within the search result helps to enforce that you are a leader in this area and can increase the chances that a consumer will more broadly explore your brand while preventing someone else from garnering that same visibility level within the Amazon search results.

With defensive ad spending, you can corner a bigger section of the market and block your competition from achieving their own goals at the same time.

 

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.

Selling an Amazon business is likely to be much easier when you have hired the support of an experienced online business broker. Most people begin their search with the question; can I sell my Amazon business? The short answer to this question is; yes.

Even if you know that now is the right time to open to the possibility of selling your company, it’s the decisions you make from this point forward that can influence your ability to get maximum value on your business sale.

Is it Time to Sell Your Business?

Most people who have a successful third party selling business on Amazon will be eligible to sell that company and receive compensation after identification of the right seller. There are three primary types of Amazon FBA business organization and it is important to realize which one of these applies to you before you begin, in order to get the most out of the selling process when hiring an experienced online business broker. These three types include private label, re-seller and proprietary products.

Private Label

If you have your own brand, but exclusive contracts with wholesalers to sell on Amazon, it might be much easier to sell this type of a business because you’ll have some leverage and this is more appealing to buyers.

Re-Seller

You may be purchasing products wholesale and make a margin while selling retail on Amazon. This may also be referred to as a model known as retail arbitrage. This type of business can be very difficult to sell even if your profit amount is high. There are a number of reasons why this version of an FBA business is much harder to sell.

This includes that supply can be an issue, that it is highly volatile since there is no method to appropriately control the amount of competition, and because a buyer is only essentially getting access to your seller account and not reaping other benefits that would typically be pursued in this type of situation.

Proprietary Products

If you have created a popular product or a formula or you have made a popular product’s formula better and this is unique to you and your brand, this is a gold standard in terms of a sale because buyers are willing to pay a premium. Your business is more defensible over the long term because you are the only one who sells this specific item. You may be confused about which one of these models apply to you.

Tips for Selling an Amazon FBA Business

It is very convoluted to figure out the exact steps necessary to sell an Amazon FBA business, which is why so many people turn the services of an experienced online business broker to determine the most appropriate way to go forward. An online business broker will have extensive experience in this field and be thoroughly knowledgeable about the negotiation process and the identification of the right type of buyers to begin with.

 

Selling your online business is an exciting prospect but it is one that should always be approached with caution and extra consideration. An experienced business broker can help you successfully navigate the process of selling your business.

Website brokers and small business brokers are a crucial aspect of finding the right buyer and helping you to prepare for the sale well in advance. An e-commerce business broker should be thoroughly vetted before choosing to work with him or her. The right business brokerage for you will be one that keeps you informed over the duration of the process. An online business broker is a person who will work with you closely both before and during the sale, so it should be someone you’re comfortable with.

Reasons to Work with a Website Broker

Website brokers exist for the primary purpose of helping website owners to sell an online business. They may assist with selling an Amazon company, an e-commerce company, a tech company, a software company, or any other digital business.

A broker will provide access to an established network of buyers for the company and given that selling a business and website is a complex and time-consuming task, hiring the right online business brokers to assist in this process can free up your time and energy to be spent elsewhere.

Selling a business is also a highly emotional process and there’s a chance that you have developed tunnel vision and may be unable to understand the varying issues associated with the business valuation. Business brokers are neutral and can help you see how the facts are presented to the potential buyers.

A business broker, however, will mentor you through the process and will keep the sale of the business confidential through the use by qualifying buyers and using nondisclosure agreements.

Many website brokers are thoroughly experienced negotiators and can help you get the best deal on your terms. A good small business broker will take the time to explain his or her process to you and to provide you with all of the information you need to make a decision confidently.

Why Does it Matter That You Choose the Right Online Business Broker?

You need to feel very comfortable with the process of finding the right internet business brokers because you have spent a lot of time and energy building your business and you deserve to have someone who brings that level of care and attention to the table when it comes time to sell your company.

Sadly, not all small business brokers are legitimate and many of them do not have the appropriate experience or commitment in the field.

A lack of listings by website brokers, for example, could be an indication that they are not in high demand or used very often. Make sure that you complete a research process well in advance of choosing to work with a particular company.

Online business brokers with a clear track record of valuable sales in the past are extremely helpful to you for answering your questions and protecting your interests in a sale. Reach out today to small business brokers who care about you and your company.