Website Selling Tips
Congratulations! Many people have purchased domain names and have never gotten around to ever needing web site selling tips. If you have a website to sell that generates profits you are sitting on a valuable asset. What is my business worth, you ask? In general the business is worth any where from 3 to 6 times your pretax earnings or EBITDA. As an example, if pretax earnings for a B2C eCommerce business were $100,000 in 2004, the asking price should be at least $300,000 plus inventory unless it is an electronics business which would lower the asking price to 2 times pretax earnings because margins are usually razor thin.
The number one tip on sell website or web site selling tip is to run your business as if you were to sell the web site tomorrow. This means you should be keeping accurate and clean books. Many Internet entrepreneurs have a few Internet businesses going at the same time. It is important not to combine the revenues, not use the same merchant accounts and checking accounts unless you intend on selling all of the websites simultaneously. Another sell website tip is to use a business broker or merger and acquisition firm to sell your business. They will be able to filter out the “unqualifieds” guide you and the buyer through the process and get better pricing for your business. For Internet businesses, eBizBrokers is the only firm in the world that exclusively specializes in representing Internet businesses. eBizBrokers has a database of thousands of buyers, big and small, that are interested only in acquiring an e-business. Since 2000 dozens of ebusinesses have been sold. Feel free to give a call for a free consult on your Internet business.
Should you decide to sell your web site business on your own, otherwise known as a FSBO (for sale by owner), make sure you put a well thought out package together that contains the vital information of your business. Include a summary of the business, profit and loss statements, traffic reports, along with other important documents, such as web site conversion ratios and search engine ranking reports. This package will give your potential buyers a good overview of the business.
To obtain potential buyers place ads on business for sale portals such as bizbuysell.com, www.bizxc.com, bizquest.com, globalbx.com. This will give you some great exposure form potential buyers. Herein lies the next website selling tip, be sure to prequalify the buyers before you spend a lot of time with them. Nothing is worse then having a buyer with no money bring you all the way to a closing date.
When you have buyer who is qualified and interested in the web site business, due diligence will commence. Be sure to have a clear money trail that shows the dollars that came into the web site, usually via a merchant account or Paypal, into a checking account. (Not your personal one!) These income numbers should coincide with your tax returns. Same goes for expenses, be prepared to show invoices that match your outflow of cash from the business bank account. It’s important to be accurate and honest with the due diligence. Any confusion and uncertainty will cause the buyer to bail out and move on to the next deal. Today’s buyers are very savvy and will find something that a seller was trying to hide. So better to be up front and disclose everything.
Closing documents can be drafted up by attorneys, or often a firm such as eBizBrokers will have templates for you to use. Our website brokers at eBizBrokers would be happy to provide a free consultation and more website selling tips.
For additional information please visit http://domaininfo.buydomains.com/ec/domain-name-basics/selling-domains/ or http://www.hostgatorreview.org/great-website-selling-tips-sell-your-website-in-good-price
Good Luck
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