How to Sell Your Website
Maybe you’ve been working on a website for a while and realize you’re no longer passionate about the topic. You’ve done well for yourself and even created a nice monthly side income. Or, maybe you’ve built a site with the intent to sell, and now you’re looking to exit. Whatever the reason, you want to sell your site, but don’t know where to start.
Below we walk you through the process of selling your website. Remember, the more prep work you do the smoother the sales process will be and you’ll also improve the chances of selling your site for a larger payment.
1. Prep Your Website
Running a profitable website takes a lot more than just throwing up a few ads, or dropping a few affiliate links throughout your content. It’s important to optimize your site both for profit, and overall user experience.
A site that’s maxing out its profit potential and has a very clean and beautiful design will sell at a much higher price. So, how exactly do you optimize your site?
- Improve user engagement by testing headlines, layouts, colors, CTA-buttons, and more. It’s important to test various aspects of your site to improve user engagement numbers.
- Optimize your profits. To get the most value from your site you’ll want to optimize the ways you’re currently driving revenue. For example, if you’re using Google AdSense, then test different layout to improve your profits. If you’re making money via affiliate links, then test different CTA’s and link placements to see if you can improve conversions.
Even spending time optimizing your site’s speed and performance will have an effect. Basically, you’ll want to make your site as perfect as possible. The higher quality site you have to sell, the more money you’re going to get.
2. Improve Your Site’s Value
It’s important that you sell your site when revenues are actually increasing. If they’ve been declining or stagnating for quite some time, then you’ll want to spend time getting those revenue numbers back up before you decide to sell.
If the majority of your site’s traffic comes from a single source, it’s also a good idea to start diversifying your traffic sources. For example, if most of your traffic comes from paid traffic sources, then you could start experimenting with social media or SEO. That way, if one source of traffic dies down, it doesn’t kill your site.
3. Remove Yourself from the Process
If the success of your website depends 100% on you being there, then it’s going to be difficult to sell. You need to have systems in place that completely remove you from the process and allow another person to step in.
You may be able to draft up a contract that includes you continuing to work on the site in some capacity, but this needs to be clearly defined. Typically, you may continue to assist on a consulting basis, but your role will slowly be phased out over time.
4. Gather Revenue and Traffic Data
Now, it’s time to gather historical revenue and traffic data. Be completely honest with these figures. It can be helpful to take screenshots from your Google Analytics and Google AdSense accounts, or however else you’re measuring profits and traffic.
Without having accurate revenue and traffic figures you won’t be able to accurately convey the value of your site. If necessary, you can even consider hiring a CPA to help compile your revenue reports. The more detail you can cover the higher chances there will be a buyer interested in your site.
5. Determine Your Website’s Worth
The value of your site is based upon the buyer’s ROI. Most sites will be valued at a multiple of their yearly earnings. For example, a website that makes $100,000 per year might be valued at a 1x multiple, which will sell for $100,000. Or, it could be valued at a 2x multiple, which would drive up the sale price to $200,000.
This multiple will be calculated based upon the overall risk involved from the buyer’s side. If your site has solid consistent earnings, multiple traffic sources, systems in place, and multiple revenue sources, then it will sell for a higher multiple.
6. Choose the Right Selling Platform
Once you’ve prepped your site for sale, maximized its value, put a system in place, gathered revenue and traffic data, and have a baseline price in mind, it’s time to list your site.
There are multiple places online where you can sell your site. The two most common website marketplaces are Flippa and Empire Flippers. Both of these sites allow you to upload your site listings and monitor the auction. Remember, that most of your offers will come in towards the end of your auction.
Once you have some offers its important that you remain involved in the selling process. This will decrease the chances that the sale will fall through.
Finally, payment is typically done in the form of escrow. This will help to mitigate payment risk for both parties.
By implementing the tips above you’ll be able to sell your site for a solid profit. By neglecting the above steps your site will either have a hard time selling, or you’ll have to cut the price.