Whether you’re seriously considering selling your established website/eCommerce business, or you’re simply curious how much your website might be worth, this blog post is for you. The easiest way to sell a website is by going through a brokerage/firm and having them handle the entire process for you.
Believe it or not, selling a website isn’t something that can be done quickly and carelessly. This is especially true if it’s an eCommerce website that pulls in some serious annual revenue. There are many different factors that can go into determining how much a website is actually worth, most of which are covered in the below sections.
If you’re wondering about how to sell a website, the following sections provide an overview of the basics behind the sales process. Also covered is how to go about choosing an experienced firm to handle the sale of your website. No matter where you fall on the eCommerce spectrum, having some more information about eCommerce/website brokerage will be a major help should you ever decide to sell your online business.
Determining How Much Your Website Is Worth
Before you can start any sort of official sales process, you need to figure out exactly how much your website is worth. Most brokers follow a very specific, detailed valuation process that puts a precise dollar value on your online business. These valuation processes include a number of factors into the equation such as:
- How long your website has existed
- Whether or not you sell products and/or services
- How much your annual revenue is
- What your USPs are (unique selling points)
- What your business’s operating costs are
- What your other expenses are
- What your growth rate is (for the past few months/years)
- What your industry of operation is
- What your business’s niche is
- How many products you sell
Understanding the Buyer’s POV
The number one thing that buyers are looking for when looking for a website to buy, is how much their ROI will be. Nobody wants to buy a floundering business. Likewise, nobody wants to buy a business that isn’t set up for long-term success either. This is why factors such as growth rate, annual revenue, etc. are counted in the initial valuation equation – because they’re vitally important for drawing in buyers.
The businesses that are able to prove that they’re relatively low-risk opportunities for buyers are the ones that will be able to sell at premium prices. Businesses that aren’t able to do this will nearly always sell for lower than what they might be worth.
Going With the Right Broker
Choosing the right type of broker is equally as important as making sure your business is actually ready to be sold. You should go with a broker/firm that has experience in your niche/industry and operates and/or has experience selling businesses that operate at your level. For example, if your business makes $250,000 per year, it wouldn’t make any sense to go with a broker that only deals with $5 million-plus per year businesses.
Patience Is More Important Than You Think
One of the most undermentioned aspects of selling a website is the fact that you’re going to need patience. Don’t jump at the first offer that comes your way. Likewise, don’t think that your website is going to sell within a few weeks (or even months) of being placed on the market.
Selling a website takes time, and the larger your website/eCommerce business is the longer it’s going to take. So, if you go into this thinking that you’re going to be getting a check within a few weeks/months of deciding to sell your website you might be in for a rude awakening. Even getting a proper valuation takes time, and if you operate a large business it might even take over six months.
Putting It All Together
Remember, just because you decide you want to sell your website, doesn’t mean that you’re going to instantly find a buyer. More importantly, is the fact that you shouldn’t rush into any sale without first having an experienced attorney look at the contract and any other relevant documents.
Brokers typically take anywhere from ten to fifteen percent of the final sale, which is another thing to keep in mind. However, the thing about going with a broker is that they offer numerous services that are hard to complete on your own (especially if you’re a busy business owner).