People who buy and sell property within a short period of time – for quick profit – are known as “flippers”. One can get rich “flipping” houses in the real estate industry. Today, you can make a tidy sum by buying and selling web properties, and you don’t even have to get out of your house! Of course, just like in the traditional investing, you can also lose your shirt if you don’t understand the market, miscalculate the risks, or fail to employ due diligence.
Before you take on the challenge, it would be a smart idea to consider some general tips on selling websites. Selling a website for a profit should come as a crown of all of your past hard work: spotting a promising website, researching and analyzing its stats, negotiating a deal with an owner, and developing the website in order for it to reach its full earning potential.
Websites are still undervalued when compared to traditional investments: they are usually sold for only about ten times their monthly income. In other words, one can get back his investment in less than a year. For a seller, that means that it is important to present your web property in the best light! Don’t attempt to sell a website that’s on a downfall: that will significantly lower its value, and your asking price.
When is the right time to sell? It is best to sell when the traffic and revenue start rising after being stable for a while. You want to instill confidence in your potential buyers, but don’t wait for the growth rate to slow down. What you are selling when you are selling your website is its revenue growth potential!
Be prepared to back up your asking price with detailed stats and analytic regarding the website’s traffic and revenue. You should also have a good answer to “why are you selling it” prepared. Are there any expenses involved? Some may ask you if you plan on building a competing website once this one is sold.
You can’t legally sell your Twitter handle and Facebook Page. Therefore, you cannot put a price on them: the ownership of social media accounts should be transferred for free i.e. their “value” is already calculated in the website’s price.
Even if you’re using a specialized marketplace to sell your website, it is a good idea to use escrow services, especially when selling for a large amount. Finally, make sure that you are certain that you want to sell your website, because once it’s gone, it’s gone forever!