If you own a website that makes a decent amount of revenue, chances are, you’ve thought about selling it.
People sell their sites all the time for big chunks of cash, so why can’t you? In this article we’re going to cover how a website broker can help you sell your site for top dollar.
How a Broker Can Help You Sell Your Website for Top Dollar
1. So, what exactly can a website broker do for me?
Put simply, website brokers help you find buyers for the website you want to sell. They’ll work with you to prepare your website for sale and help you make the most amount of money possible.
Although this process sounds pretty simple and straightforward, there’s a lot going on behind the scenes.
During the website sales process, brokers will:
- Value your website.
- Research other websites that have sold that are similar to yours.
- Develop a marketing strategy that is specific to your website.
- Find, show, and educate potential buyers about your website.
- Negotiate between you and the potential buyer.
- Prepare all of the due diligence involved.
- Draft offers and present them to you.
- Make sure all parties are up to date on all the information
- Protect the seller’s confidentiality (if requested).
- Document the sales process.
- Assist in completing the overall sale; include fund transfers and contracts.
- Give any post-sales support that may be needed.
Walk me through the entire process when I work with a broker to sell my website
When you’re attempting to sell your website, think of the broker as your real estate agent.
As the seller, you go into an agreement with your agent to have them sell your “asset”. Just because your website isn’t a physical asset like a house or other expensive piece of property, it’s still important to get the right representation.
That’s where a website broker comes in.
Once the broker has done all of the market research, paperwork, and has collected all the information needed to ensure that the sale of your site will attract the highest bidders, they will create a sales document (or information memorandum) to showcase your website to potential buyers. This document is used to make your website appealing to multiple buyers to ensure the highest price is offered. It usually contains the financials, traffic statistics, current revenue strategy, and a general overview of what the website does and how it works.
When a buyer receives this document and reviews it, they decide whether they are interested in purchasing it or not. If they decide they are interested, they will then sign a letter of intent, making an official offer for your website. At this point they are given the remaining information required (like bank account statements, other financials, any other data required) to make their final decision. Once the final due diligence is complete and the buyer is happy with all his research into your claims about your website, contracts will be signed from both parties to sell. You will receive your funds, and the buyer then gets full ownership of the website.
2. Why should I hire a broker to sell my website? Couldn’t I just sell it myself?
Sure, you probably could sell your website on your own.
Here are some of the reasons you might consider doing just that:
- A strategic buyer has made an offer over 3x yearly profit
- You receive an offer that is higher than the market
- You have a hassle free buyer
- You have skills (legal, sales, etc) in preparing a website for sale
- You are a master negotiator
- You have lots of free time to answer questions from potential buyers
Selling your site yourself isn’t as easy as it sounds. Hiring a broker will make the process much easier, and will help you get top dollar for your site.
Well, hiring a broker to sell your website gives you a couple of advantages – first, brokers are highly skilled in determining the right valuation (selling price) and second, they have a large network of buyers.
Plus, a website broker does this every day – it’s their job. Selling your website yourself would be kind of like you self-diagnosing an illness rather than going to a doctor. Also, working with a broker would give you access to certain marketing channels, large networks of buyers, business classified sites that require a subscription, and investment firms that a website broker has.
3. How long will it take to sell my website?
The amount of time it takes to sell a website depends on the site, the listing price, the market it’s in, how much time it requires to maintain the website, the business model and the general market conditions.
Some websites may take a week and others can take up to six months. That being said, we typically sell websites within three months of listing them. Sometimes it’s just a matter of waiting for the right buyer, whereas other times it’s about adjusting the asking price.
Buyers usually like to take some time to fully research the website and make sure they have dotted their i’s and crossed their t’s before they end up paying for it. To make the process as smooth as possible for potential buyers, the best thing to do is to have :
- All financial records organized and available
- Extracted yourself from the daily operations (in other words, reduced the “hands on” time it takes to run your website)
- A website that is trending upwards
4. What do I need to prepare to sell my website?
You’ll need to give potential buyers a clear understanding of your website, how it makes money and what it takes to run it.
You should have the following ready for your broker:
- A general overview – give a synopsis of your business
- Your business model – explain how the website makes money
- Your business operations – outline what is required to run the site on a daily, weekly and monthly basis
- Traffic – provide a summary of the website traffic
- Growth opportunities – suggest “areas of opportunity” for a new buyer to make their money back quicker
- Financials – provide at least 12 months profit and loss statements on an Excel spreadsheet
5. What would I need to fetch a higher price for my website?
To earn top dollar for your website, you should have:
- Solid earnings
- Positive growth trend
- Automated processes
- Defensible market
- Room for growth
- A strong brand
- Diversification (of revenue and traffic)
- Unique Selling Point (some type of unique asset)
- Key assets (like an email list, a premium domain, supplier contracts, etc.)
- Zero legal liabilities
6. What kind of pricing and fees should I expect when working with a broker?
Website brokers are paid a commission for selling your website successfully. If they don’t sell your website, they don’t get paid. There are usually no up-front fees, and the percentage of the commission depends on the broker. Expect an investment of 10% of the final selling price.
7. My website didn’t sell. Now what?
If your site doesn’t sell right away, that doesn’t mean that you should panic and jump ship.
Sometimes the best deals take the longest to find, so being patient can really be worth it.
One of the top reasons for a website not selling is unrealistic price expectations. Asking for more money than your site is actually worth is a good negotiating strategy. However, asking for an unreasonable price will actually deter buyers from even looking at your listing.
If your site hasn’t sold, but you still want to proceed with selling, a broker usually gives their clients an exclusive agreement that lasts 90 days. Great brokers will often provide their clients with a 30-day “out clause” that allows clients to leave and cancel the whole agreement within the first 30 days if they’re not happy with the services that the broker has provided so far.
As you can see, a website broker can help you sell your website for top dollar. A broker will help you fully prepare for the sale, set proper pricing, deal with any hassles, find buyers, and so much more. And once you have the cash in the bank after selling your website, you’ll be so happy you worked with one.
Are you interested in selling your website? Jock is offering a free website valuation for The Mogul Mom readers. Click here to get yours!
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