Are you considering selling your small business website for profit? If so, it’s important to understand the process and factors involved in determining the value of your website. In this beginner’s guide, we will cover key aspects of buying and selling websites based on personal experience.
Should You Sell Your Website?
If your website is generating revenue, the decision to sell should be carefully considered. Selling your website means trading a revenue-generating asset for a lump sum of cash. On the other hand, holding onto your website comes with uncertainty about its future revenue potential. Both options carry significant risks.
How Much Is Your Website Worth?
Determining the value of your website can be challenging, as it’s often a range rather than an exact figure. Website brokers evaluate worth based on factors like revenue and traffic, rather than potential. A common rule of thumb is 24-36x the monthly revenue. For example, a website making $1,000 per month could be valued at $24,000 to $36,000.
Website valuation varies based on factors such as website type, age, revenue trend, and traffic sources. Subscription-based websites typically fetch higher valuations, while affiliate and content-based ones may have lower valuations.
How Can You Sell Your Website?
While you can seek buyers independently, using a website broker is a safer option. Three popular website brokers are FE International, Empire Flippers, and Flippa.
FE International:
FE International is a reputable website broker known for handling legal documentation, marketing, and buyer interactions. Commission fees are typically around 15% for large websites, with no upfront listing fees.
Empire Flippers:
Empire Flippers offers a hands-off approach for sellers, though the process may not be as thorough as FE International. They charge an upfront listing fee and 15-20% commission if the website sells.
Flippa:
Flippa operates as an auction-style marketplace, with no guarantee that your website will sell. Due diligence falls on the buyer, so it’s suited for websites valued under $10,000.
Consider these options carefully when selling your website, and remember to prioritize safety and transparency throughout the process.
