How Much Is My Website Worth – Knowing When To Sell
You’ve put a lot of time and energy into your website. After another long day of typing away at your keyboard and working away at your website, you’re probably wondering, what’s the end goal?
Some people create websites for the love of it, or as a necessity for their small business. Some people create sites with hosting services where the end goal is to eventually sell their site down the road.
Have you ever thought about selling your site and asked yourself the question, “How much is my website worth?” If yes, then this post is for you.
Below we’ll show you how to determine how much your website is worth, so you can answer that lingering question, should I sell my website?
Should You Sell Your Website?
If your website has been generating consistent revenue, then it is up to you whether you want to continue that monthly income, or try and cash out for a lump sum payment.
Ultimately, choosing to sell your website is up to you.
If you’ve been generating consistent revenue, have decreased expenses as much as possible, and optimized your revenue streams, then you’re in a solid position to sell.
If this sounds like you, then it could be time to sell your site:
- You feel like your site has reached it’s potential, both in income and traffic.
- You feel bored with your current site or frustrated that it’s still taking up your time.
- You want to cash out and move onto other opportunities.
Selling your site should be something you’re excited about and not something you feel forced or pressured into.
How Much is Your Website Worth?
There isn’t a way to determine the exact amount you’ll get for your website. But, you can get a general range that’ll be pretty close to what you can expect to get for the sale.
To get a sense for how much your website is worth you’ll multiply your monthly or yearly profit times a certain multiple. How large that multiple is depends upon what kind of site you run, its legacy of income, its traffic sources, and a lot more.
The general equation is: (your monthly revenue) multiplied by (a factor of 24-36). However, this multiple will vary based upon a variety of factors.
Below we explore how you can both determine and increase the amount you’ll get for the sale:
- Your Net Profit — How much does your website actually make? What’s your yearly or monthly net profit after expenses? The higher this number the better.
- Long-Term Profit — Have you been consistently generating revenue for years? Or, are you experiencing an income spike? Buyers like to see steady, or increasing income, month after month.
- Multiple Revenue Streams — How many revenue streams do you have? If you rely on a single revenue stream your site could be a risky investment for potential buyers. On the other hand, if you’re diversified across things like your own product income, advertising, and affiliate products, you’ll likely get a higher multiple.
- Multiple Traffic Streams — If your site relies on a single traffic source it could be risky if that dries up. Having a site solely based on SEO can net you more cash than an advertising-based site. But, the more website traffic sources available the better.
- External Factors — Do you have an engaged email list? How about active social media channels? These aren’t necessary, but they can help to improve the overall value of a sale.
- Time Required to Run — Does your site require you to work a 50-hour week? Or, is it optimized where you only need to put in an hour or less per day? The less time your site requires to run the more it’ll be worth.
If you want to get an accurate representation of how much your current site is worth then check out the Empire Flippers valuation tool. This website value calculator uses the criteria above and more to give you a general appraisal of your existing site.
How to Sell Your Website
Although you can technically sell your website to anyone at any time, the recommended approach is to go through a website broker. This will help get your site in front of potential buyers and help to ensure the safe transfer of your site and payment.
The three most common places to sell your site are highlighted below:
Flippa is an auction site where people can place bids on your website. You can list your site for a certain amount, but there’s no guarantee that you’ll get that amount, or that it will sell at all. They currently have around a 10% sell rate for the websites listed.
You can think of it like a marketplace that’s similar to eBay. Typically, sites that are sold on Flippa end up selling for smaller amounts, however, there have been some larger deals processed through the platform.
Empire Flippers acts as a partner in helping you sell your site. They help to walk you through the entire process, get your website in front of serious buyers, and even transfer over the site to the new owner, so you don’t have to.
You can expect to pay a higher fee than listing your site on Flippa. But, if you’re selling a high-quality site, and you want it done right, then they’re worth checking out.
FE International is an online brokerage that helps you sell your website and online business. They will work with you side by side the entire time and make it as easy as possible to sell your website or online business. With a 94.1% success rate, the chances of selling your website are high on FE International, as long as it’s high-quality and bringing in unique visitors.
Is Your Website Worth Selling?
There are many benefits to selling your website but it’s important to explore your options before making a quick decision. Hopefully, you have a better idea of when you should sell your site, how to determine how much it’s worth, and where you should consider listing your site for sale.