In the virtual world, websites are real estate. Just as in the real world, some choose to invest in real estate, in the virtual world, people think of buying and selling websites to be a lucrative business investment. In case you are someone who was looking for a new career option or a side gig to make money from the comfort of your home, it is worth considering the idea of buying and selling websites.
With that said, it is also true that this is not easy money. Just like any investment, there is enough risk involved in this field too, and starting such a venture requires skill and work. Keep reading to know more about selling websites.
How much is your website worth?
Did you ever think to yourself how much your website is worth and how you could sell the same? If you did, this article will cover the most important details on the selling of websites. I too got involved in such a business when one of my websites met with exponentially high traffic and began to generate a few thousand dollars in a month via Google AdSense. This was when I realized the actual potential in the site.
Are you supposed to sell your website?
Is your website already making money? If yes, it is entirely on your discretion to determine whether you wish to keep it or utilize it for making money by selling it. However, once you sell your website, you will not generate regular revenue. You will be swapping your revenue-generating asset in exchange for a lump sum amount.
On the contrary, if you decide to keep your website to yourself, you won’t know whether or not it will generate more revenue or less shortly. Hence, for both decisions, there is a noteworthy risk that you have to assess.
Determining your website’s worth
Before you move on to sell your website, the first thing that comes to your mind is how much it is worth. Determining the worth of your website is a tricky process as it doesn’t involve an accurate value but a range. We are of the notion that the worth of our websites is entirely based on their potential, but this is not entirely true. A business broker or a website broker will rarely take into account only the potential of a website while evaluating its worth. The pivotal factors are the traffic and revenue that it generates.
Based on the type of website, a thumb rule used is 24-36X the monthly revenue that it generates. Therefore, if your website brings in $1000/month, its range of value would be $24,000-$36,000.
What is the process of selling your website?
You may watch out for potential website buyers and investors everywhere, the safest method of selling your website is through a website broker. One of the best website brokers I have used is Websiteclosers.com. If your website’s worth is under $10,000, they seem to be a great marketplace for selling it. They take care of the entire legal documentation process, promoting your website sale, and expedite all interactions with future buyers.
Their commission structure may vary but they are usually 15% for larger websites with bigger returns. However, the best part of seeking their help is you don’t need to pay upfront for listing your website on their marketplace.
How not to sell your website
Here is a list of the common mistakes most website sellers commit while selling websites that push away the kind of buyers they want to attract.
Load your auction with useless data
None in the market cares about the unique design of the blog or the flashy navigation system. What they care about is the potential for making revenue and its extent of influence.
List your site without any effort to monetize it
The other mistake committed by sellers is underselling it by not spending enough time on monetization. They always tend to be short on time and hence are challenged by other projects.
Decide the potential of your website without considering the long term
Many sellers are a bit too optimistic about the future of their site. No, your site is not going to triple its revenue within 2 months! So, you should be realistic with your expectations.
So, if you haven’t yet successfully sold a website, take into account the points mentioned above to sell one. Let us know whether you lost money or made a profit through the sale.