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Question about selling high earning website/ Online Web design Company

Discussion in 'General Business' started by modournation, Jul 7, 2015.

  1. #1
    Hello,
    SEMrush
    I am currently looking at selling one of my largest earning websites and looking for some advice on how to go about selling it. The website earns between 20-30k a month, through email and telemarketing I do for web design and social media marketing. I spend about 1500 a month to keep it going. My first question is this: when I use a domain appraiser tool it shows that my website is worth practically nothing, but I on the other hand it is profiting over 20-30k a month, would this be a problem for selling my website? If not, the next question would be where would be/ how would be the best way I could sell this?


    Thanks,

    Kabone
     
    modournation, Jul 7, 2015 IP
    SEMrush
  2. qwikad.com

    qwikad.com Illustrious Member Affiliate Manager

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    #2
    I am pretty sure it will be a problem. Do you have a staff that does telemarketing? How do you generate the leads? Is it fully outsourced? On the other hand, if you have a decent paperwork available to support your claims, you will find interested parties.

    If you really want to know the answer, contact these guys: http://www.websitebroker.com/

    They used to sell high ticket websites. I don't know if they still do or not, but it's worth checking it out.
     
    qwikad.com, Jul 9, 2015 IP
  3. jestep

    jestep Prominent Member Premium Member

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    #3
    The first thing any buyer is going to ask is why the hell are you selling a website that's pulling in a profit like this. I'm asking the same thing.

    Secondly, is the $20 - $30K per month gross revenue or actual profit after all expenses? If it's the latter, what's the gross monthly revenue of the site?

    The internet is 99% a bunch of sites that can pull in a lot of revenue and have almost zero profit. I'd sit on this thing forever with that sort of ROI. Even if I had to increase overhead and automate as much as possible, I'd spend $10K per month to make $20 - $30K in passive income long before I ever considered parting with it. I'd go so far as to pretty much spend to the break even point, and then sell it and let someone else figure out how to make it profitable again.

    Secondly, if this is legitimate, make sure you have your accounting in order. This should be evaluated like a real web business which typically requires an in-depth analysis of where traffic comes from, type of site, type of customer, revenue streams, etc. Accounting needs to be rock solid for any legitimate buyer to consider it. Also need detailed documentation of how the site makes money and how the operations work. Those website appraisal services are total garbage and they usually base the value off of pure advertising potential. For example, I have a property that typically appraises around $1,000 on those sites, yet it's grossing several million a year in real sales, obviously not profit, but I wouldn't consider parting with it for less than several million dollars.

    Just a starting point, if you have a website where the customer base is fairly sticky, as in it's not going to instantly disappear if a search engine or FB makes a simple change, and you're profiting $20,000 USD per month, it's probably easily worth close to a million dollars outright. On the other hand, if there are factors that could instantly kill the sales, the value will be significantly lower because nobody is going to take such a risk. An example of this I've seen is when some website's sales come primarily from a single high ranking term in a search engine. Just too risky placing a lot of value on a single term even if it is creating a ton of sales month to month.
     
    jestep, Jul 9, 2015 IP
    daveman and qwikad.com like this.
  4. Riposte

    Riposte Active Member

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    #4
    Websites generally sell for about 10-12 month's worth of profits. So if you're making about $20k profit per month, I would expect you could sell it for at least $200k.

    Don't worry about the domain appraiser tool. Just show your traffic stats and monthly income and expenses, and you're good to go.
     
    Riposte, Jul 9, 2015 IP
  5. daveman

    daveman Active Member

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    #5
    Jestep
    I love your insight and detailed analysis on this, OP sounds like you're selling a business rather than a website, if that's the case, why not use a business broker?
     
    daveman, Jul 12, 2015 IP