HOW TO SELL A WEBSITE, SELLING A DOMAIN
How to sell a website, selling a domain, flipping websites, we buy and sell underperforming and low traffic websites.
There is obviously a huge difference between selling a website as a highly profitable business and a website that has been a dismal failure. However, strange as it may seem, you are more likely to find it easier to sell a website that is getting low numbers of unique visitors and zero online sales than a website that is making high profits.
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selling a website
Previous page about
second hand websites
Obviously, the profitable website is going to have a far higher value than the poor performing site but like anything there are always opportunities for improvement with low performing sites and they are certainly more affordable, ensuring there is a wider market place. I would liken it to Rolls Royce's and second hand fords. There is obviously a far larger market for the latter as few can afford a Roller.
The basic rule of thumb for selling a profitable website is to take the profit average for the previous three years and multiply by 2.5. So if your website made 10,000 in year one, 20,000 in year two and 30,000 in year three, you made an average profit of 20,000.
You then multiply the 20,000 by 2.5 to get the sale value of 50,000.
Obviously, there are other factors that can influence the value of a website. Current market conditions for example - who would want to buy a mortgage website right now? Buyers want to see opportunities for growth and some Internet companies will simply buy a site to obtain the technology or because they have a similar business and want to remove a thorn in their side.
Others will possibly see the potential to expand, merge or diversify a website. It all depends on the market place, the content and if the technology is unique.
Turnover is meaningless - turnover is vanity, profit is sanity in business. So if you are building an internet business with a view to selling it on in the future, focus on profitability, keep your overheads down, look for additional revenue streams and keep stringent financial records and stats.
The first thing we or anyone else will ask when you start talking figures is "Prove it". All too often, we get approached by people making claims about traffic and profit levels but are unable to provide any documentation. Often they have not declared the income to avoid paying income tax and at the same time seriously reduced the value of their website.
A website is the same as any business; you can use it as income to obtain a mortgage or sell on as a viable going concern but only if you are able to provide proof of income. If you cannot provide accounts that have been signed off by an accountant and submitted to the tax authorities, you will be spitting into the wind.
If you have a profitable website that you are considering selling, talk to us. If it doesn't fit into our current portfolio, we will be happy to advise about valuations and broker the site on your behalf.
So, if that's the formula for working out what a profitable website is worth, how do you go about valuing a website that doesn't make any money?
This is the small beans market but it is lucrative and little fish are sweet. Despite the fact that the website is not getting any visitors or making any money, and is therefore worthless to you does not mean that it is not of value to us or someone else.
There are people who want to start an internet business and may find it cheaper to buy your website and have it redesigned and optimised for the search engines. If it doesn't fit into our portfolio, we would certainly be happy to give you a valuation and broker it for you on a commission only basis.
There is a huge market for second hand websites, the skill is knowing how to find the buyers or more importantly how to get the buyers to find you. we are interested in buying all types of websites but the ones we are interested in buying for ourselves tend to fall into the following categories.
- The website you are selling must have plenty of unique content. Not content that has been copied from other websites.
- If it has a database it must be carrying unique products. Not being supplied by an RSS feed as these websites are worthless because Google doesn't index duplicate content.
- It must not be a website that provides a service that only you can provide. In this instance you are the business not the website.
The valuation on the website will be based on the perceived potential because there is no income at the moment. Regretfully, the value is not based on how hard you have worked, how many hours you have sweated or how much it cost to have built. At the moment, if you have a website that is not making money, it is worthless to you but may have a value to someone else. There are basically three options open to you.
- Sell your website to us or instruct us to find a buyer
- Employ us to optimise the website and get the visitor levels and income up and then sell it as a going concern
- Or if you are tired of throwing money at it, form a partnership with us and allow us to redevelop the site and increase the profitability and share the income or profits from any sale in the future.
One thing is certain, if you do nothing, nothing will happen and eventually you will lose interest and you will allow the domain name to lapse and you will lose the website. Sadly, this is happening every minute of the day as website owners who naively employed an unqualified website designer to build their website quit the internet as a medium to make money.
Second hand websites