As with any investment, such as real estate, equities, or physical stores, selling an online business can have a huge negative effect.
However, there are risks associated with reverse.
Browsing to my website and working as a broker at Flipping Enterprises (I completed a $1.3 million transaction in 2012), and when the sale was done right, I got a brilliant reward and those You can reduce many of the risks. Perform a 10-step plan on how you can buy and sell your first site with relative profitability and safety.
To get the right idea, think about buying and selling an online business, just like turning a house over. Smart House Flipper buys undervalued properties that can be improved at the lowest cost and allows them to sell for a profit after some time. Simply put, a person who lives a full-time life closes only 4-5 such transactions a year. One of the differences between short-term house flipping and website flipping is that you not only sell your website and make money, but you also have the opportunity to add a monthly profit stream for the foreseeable future.
1. Know your limits
You must be honest with yourself. How much money can I afford to lose? Please really think about it. Can I survive if I lose the $5,000 I plan to invest? No matter how attractive you are, investment is not guaranteed. You need to know how much money you can afford and prepare. Once you know that number, think about how much time you can spend managing your new business. Many websites are passive, but there are things you have to do to increase their value. Be prepared to spend some time acquiring the knowledge and skills needed to tackle a new acquisition.
2. Know which sites will grow
The term you may have heard before is the “evergreen” niche. This type of niche has no clear expiration date and is underpinned by the constant needs and desires of humans. Examples include car insurance, appliances, clothing, sports, business, beauty, and health. It is important to remember the life cycle dates on the websites you are interested in. If you buy a site that makes money quickly due to recently enacted laws, or that is trend-based, you might get out of your pocket.
A positive reason to buy an established site, regardless of niche competition, is its proven track record. If you earn $1,000 a month from search engines, you’ll know what keywords you are ranking and where you can scale them. Also, see which revenue sources are being used and the potential for immediate profitability (negotiating affiliate payments, optimizing ad placements, increasing conversions in your sales attainment process). Such). You are looking for websites that can be improved or expanded, just as house flippers look for simple fixes and improvements such as carpet replacement, painting, and kitchen refurbishment.
Also, find something that suits your interests. It helps keep you motivated when things get difficult. Here is a basic checklist:
- Possibility of rising
- Suit your interests
Want to start buying and selling a website?
Many people have started their website flipping business at Flippa.com. Flippa.com is a great place for both buyers and sellers as over 200,000 buyers are considering buying websites and online businesses.
Flippa handles larger transactions but is especially suitable for small sites with profits of less than $100,000 per year.
Founded in 2009, Flippa has sold more than 250,000 companies worldwide. Click on the banner below to see some of the current lists.
3. Where to find websites for sale
As you may know, the quality of the sales site may be very low. Walking all is part of the process and in most cases, the thing to remember is to get what you pay for. Don’t expect to buy a high-quality earner for $5,000 a month for just $15,000 (triple a month). This can happen when the site is still in its early stages and has not been certified, but it is not standard. Generally speaking, a good range for a buyer is 12 to 18 times the average monthly profit of a relatively small size (less than $50,000). If you want to earn $1,000 a month, an asking price of $12,000 to $18,000 is reasonable. However, each listing and its seller are unique and you can still make big deals, especially if you can find growth opportunities. Below are some of the most popular places to find websites for sale.
Website brokers (FlippingEnterprises.com, Wesellyoursite.com, etc.)
Website Marketplace (Flippa.com, Bizbuysell.com, WebsiteBroker.com, etc.)
Forum Marketplace (Experienced-People.net, Warriorforum.com “Website for Sale” section, Digital Point Forum, etc.)
Directly from the buyer (Google search and email contact or acquaintance)
4 How to implement expedited due diligence
As a general guideline, use the following questions for each list you are interested in as a simple “deny” filter.
Why are they selling it? Common problems are moribund niches, borderline products/services such as phone unlocks and movie downloads, and recent Google update hits (loss of traffic from Google updates is recoverable and skill And provide unique opportunities to those who have access to resources).
Do they provide evidence of income and traffic? Look for revenue screenshots showing website URLs, or evidence from alleged sources, and traffic analysis from trusted platforms such as Google Analytics.
Can you trust the seller? Easily check your account feedback and history and do a Google search by name to see results on at least two pages.
5 How to implement sufficient due diligence
If the site passes the first test and you want to dig further, most sellers will send you specific details. Let’s take a closer look:
Traffic analysis. Is there a period of traffic down? Are their traffic sources properly distributed, rather than overly dependent on one source? See their reference site. Is there anything owned by the seller? Will the links remain the same after-sale?
Proof of profit. If necessary, please provide the video logged into your affiliate or seller account and ask the seller to prove that it came from the alleged URL or related account. For example, get the Google Adsense “URL Channel” report.
6 You own the site, what is it now?
The simple answer to this question is to get to work! The more you increase your monthly profit, the more valuable it is if you decide to sell. There are thousands of articles about traffic building and website monetization, some of the better ones can be found here and here in the Income Diaries, respectively.
If you don’t have the time, resources, or energy to work on your own, make sure that the hiring person has the right references/feedback to avoid overburdening. You might be able to make money just by finding affordable help, but make sure you don’t sacrifice quality. SEO (Search Engine Optimization) work, customer service, and sales reps are good examples here.
7. Decide to sell
Your website is attractive enough-stable or increasing traffic and revenue with a solid niche-even if you only own it for a month, the amount you paid It is more likely to sell more. Ask yourself the following questions to decide if you want to sell at the right time.
Did you exhaust all possible ways to optimize traffic and revenue? This is why many sellers decide it’s time to let go. But don’t get offended. Buyers may see the opportunity to expand what you do not.
What percentage of the investment has already been repaid? Will you bring a positive return on your investment if you sell now?
What about the sale price? If you’re selling to invest in another website or project, stop and think for a moment. How likely is it to make more money on this project’s new website? If you don’t wait long for sales, such as if you have months of downtime, or usually a late-season for summer buyers, the price Could it affect?
If you need to sell it due to poor website performance due to Google updates, sudden changes in available monetization options, etc. and you need to reduce losses, stabilize it or It is advisable to do what you can withstand and sell it in time for someone else to stabilize it and hopefully grow it. When the revenue reaches zero, the value continues.
8 How to sell it
This is the highlight! Selling a website works just like selling any other product online. It should be placed before the most targeted audience. You can find the most qualified buyers at the same place you purchased your site through brokers, marketplaces, directly through industry forums. Important points to remember:
Keep a detailed record of your traffic and revenue, including Google Analytics, monthly income statement, access to reports from your affiliate network or merchant account, and be prepared.
Be open and honest with your due diligence questions. Most buyers want a clear picture of past performance, and more importantly, they can trust you.
Don’t be greedy. Unless you have the time and patience to wait for someone to jump to your unrealistic asking price, it’s best to stick to the “sweet spot” where both buyers and sellers feel fair. A suitable range is a multiple of 12x to 24x monthly profit. If you’re not sure, simply search your website broker’s For Sale Listings page or Flippa to find out what similar sites are selling.
Brokers specialize in selling listings at a fair price and in a reasonable time for a performance fee. In most cases, we will offer a free evaluation and advice on how to sell it yourself if you can’t undertake it, or how to raise its value.
If you’ve listed on one of the markets and adventure yourself, be sure to use the escrow service (we recommend escrow.com) to filter out scammers, check your feedback and past activity, call or Talk in advance on Skype. To accept their bid.
My colleague bought the site for $2,500 and was making $200-$300 a month. He changed the way he monetized his existing traffic, raising it to more than $2,000 per month. Three months later, he sold it for $25,000 and made a profit of almost $30,000.
This is one of the most successful website flips I know on an increasing percentage basis, but it’s not so uncommon to find. Like traditional real estate, established quality websites and domains add value over the long term.
If you have any questions about the process of buying or selling a website, feel free to ask me in the comments.