If you own a website that has stable traffic and brings in revenue but have no time to maintain it, do not have the know-how of taking it to the next level, or are just in need of some extra money, then selling your website is something that you should consider.
Flipping websites as selling websites is commonly termed, is an industry that is quickly growing. It makes it possible for website owners and web based businesses to easily sell their websites. One of the best places to sell or buy websites online is Flippa. It is regarded as the go-to destination for selling websites. It has more than 800,000 users and has processed transactions worth more than $175,000,000. The website gives sellers an eBay style platform where they put their websites up for sale and people interested in buying place bids.
One of the most important steps in selling a website is preparing it for sale. This is because when time to sell it finally comes, you will have all information about it ready. Providing a potential customer with all information they request builds confidence. But to have all the information available and in place, you will need to do a number of things beforehand. Traffic and Revenue are two of the most important aspects of a website that you should keep track of. Having well-kept records of both of these is crucial to a successful sale.
Google Analytics is the industry standard for analyzing and monitoring traffic to a website. One of the best things about it is that it makes it possible for website owners to share traffic data with interested buyers. It is therefore a common expectation that Google analytics is installed on a website from launch so that all traffic data is accurately recorded. Finally, for successful sale, you should aim at having at least 12 months’ worth of traffic data.
When it comes to revenue, it is very important that accurate records of all revenue and expenses are kept. The first thing that potential buyers consider when evaluating a website is the profit it makes. Therefore, without proper revenue information, it will be impossible for you to convey the value of the website to the buyer. Apart from just keeping good records, also make sure that you can actually prove the records you have. You can do this by maintaining separate accounts for all your websites and also taking advantage of backend sales reports. Also make sure that you save all financial records before changing platforms.
It is good to have a general idea of what your website would sell for at an auction before you actually sell it. Generally, a website would sell between 1 to 3 times its yearly profit. But there are still numerous websites that would sell below this value. Sometimes this range fluctuates wildly and some websites may also sell above this range. If your website is stable, unique and sustainable, then chances are high that it will sell for a higher amount. That said, listing your website for sale and then letting the market decide its value is the only true valuation method.
Setting Up the Auction
It is very easy to set up your website for auction in flippa. When you do, you will be requested to provide information about the website’s history together with detailed financial and traffic information. The more open and transparent you are, the higher chances you have of selling your website. This is because buyers would be wary of bidding on a website which the seller is not open.
Now that you have the opportunity to sell your website, bear in mind that the person reading your description will evaluate your website as a business. Therefore, avoid using redundant and unnecessary language to try make them buy. Instead, use facts about your website to convince them to buy. Some key issues to mention include the business model, marketing strategies, monetization methods, opportunities, challenges, and your reason for selling.
No matter how the auction begins, try your best to avoid being discouraged and giving up. Note that most bids will come within the last 24 hours of the auction. Therefore, if you decide to sell your website, be prepared to persevere to the end. The most important thing you can do is to remain active and respond to questions in a timely manner. Sellers who fail to respond or try to evade some questions rarely close a sale because buyers become suspicious of them. Leaving a good impression should be your goal because you buyers will not only be evaluating whether your website is good for their business, but also whether they trust you enough to do business with you.
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You have just sold your website to the highest bidder. Now what next? Hold your horses because you are not finished yet. It is critical that you remain active in the processes that follow after the sale is complete because this will reduce chances of your sale failing. The first thing to do is to determine how the buyer plans to pay for the website you are selling them. It is highly recommended that you receive payment via escrow because this is the safest payment method for both buyer and seller. Great news is that flippa offers an escrow service free of charge.
After the money has been deposited to escrow. You will receive a notification via email. Only at this point can you begin transferring the website to the buyer. After this transfer is complete, escrow will now release the funds to you. It may however take 3 to 5 business days before the money reflects in your account.
Finally, after you are through with the sale, it is time to transfer the domain to the buyer.
Selling your website at an online auction requires significant input from you. You should therefore make sure to make time for the process or else you might end up selling your website at only a fraction of what it is worth. But if you follow the tips and tricks above to sell your website, you should have no problem in successfully completing a sale.