The website and domain name market is abuzz and if you have been following the trends more businesses are opting for functional websites instead of building a website from bottom up. The website sales market is heating up with IBIS World reporting it is growing by close to 2.8% annually. In its annual study the Global Research Leader says the industry’s revenue is around $2 billion annually. There are many places to find websites for sale but how do you go about actually selling?
Alluring Market Stats
To ascertain such facts you just have to look at the DN Journal figures for 2015 where the top websites sold for over $1 million. One of the newcomers in an elite list created by the company earned $197,500.
If you are a suave entrepreneur you can clearly see the potential in this kind of business. Whether you buy a website in an auction for resale or directly from someone it is possible to eventually sell it for a good profit with the prevailing market conditions. On the other hand it is also possible to sell your own website for a tidy sum.
Easier Said than Done
Whether you want to sell your website on Flippa or any other marketplace your website can earn you a good return but it is not as easy as it sounds. For starters you have to make the call on whether you are actually ready to move on and leave your brand behind. Everyone who has tried to sell their business will tell you it is a daunting decision to make. Secondly there is the issue of competition on these auctions.
Hundreds of other entrepreneurs with similar websites are willing to sell cheaply. Indeed, the world of website sales is like the jungle where only the creative survive. Nevertheless, many others have made it in this field and like every entrepreneur you just need to identify the gap in the market before presenting your website to the market for sale.
Tips for Selling Your Website
Now that you have made the decision to sell, you have to do it innovatively in order to get the best price for it. Here are some ideas you can leverage to sell your website like a guru:
1. Monetize Your Website
Have you ever tried selling a loss making enterprise to anyone? Well, there is limited interest and the prices quoted can break the strongest heart. Likewise for your website you need to first monetize it to make it attractive. You can invest in SEO campaigns to increase its ranking on search engines and draw quality traffic because buyers are specific about these details. It is important to capitalize on Google AdSense and other pay per click platforms as they prove your site is really worth it. Entrepreneurs are particularly interested in websites that have monthly recurring revenue. They want to look at your earnings for the last three, six or 12months before deciding whether to buy your website or not. It is therefore good to take time and monetize your website well before putting it up for sale.
2. Do Your Homework
Selling a website is not easy; it requires adequate preparation. If you just list the website without having the relevant details upfront you are in for a trail of low bids. Some of the factors to present clearly include traffic stats preferably from Google Analytics, domain hosting fees, hosting provider details, earnings, type of web design (custom or template) and any other relevant information.
3. Verify Your Website on Flippa
One of the best platforms for selling your website is Flippa. However, there is a catch and this has to do with your trust rating. Buyers need to verify that indeed they are dealing with a credible seller and to ensure this, Flippa has created a trust rating. You need to increase your rating by connecting your website to your social media accounts including LinkedIn and Facebook and also providing a working phone number.
4. Showcase Your Website Benefits
If you are selling a website the first thing buyers want to know is why? For starters they will argue that if at all it is making such good money as you claim there would be no reason to sell it. As alluded to above you have to prove a projection of the income a would be buyer expects and provide some proof. You also need to provide a credible reason for selling. People don’t want to buy a website that has received a penalty from search engines like Google as a result of poor SEO practices for instance.
5. Start the Auction
Selling your website doesn’t have to be hectic because on Flippa among other auction sites you have a constant flow of bidders. All you have to do is set a reserve price to ensure you don’t sell at a loss.
When the bidding starts the hard part of selling commences; you have to be proactive by providing replies to all queries. Buyers will always start a conversation to gauge your seriousness or to find out more why you are selling the website.
To increase your chances of selling your website at a good price you can reach out to potential buyers through LinkedIn and other professional niche forums in your industry and ask them to place their bid on Flippa.
6. Do Your Research on Buy it Now (BIN) Pricing
This is where most website sellers fail because they set the BIN price too high. This will discourage would be buyers from even checking out your website to find out if they would like to buy it. SO be sure to set a reasonable BIN price by doing enough research to help you find out how much other similar websites are selling/have sold for in the recent past. Remember that most buyers buy the website at the BIN price but only after verifying that your site is worth what you are selling it at.
7. Be Real
A golden rule in marketing is never to overdo it; in website selling you should never hype your description. Most of the buyers might in fact know about your site and will be overly critical if there are any misrepresentations. If you ever appear desperate when offering your website for sale then you are bound to get low price bids.
There is no gainsaying the potential in the website sales market but you have to be suave to get the best ROI. The bottom-line is in pricing by using available analytics to support your case. Every buyer wants prove that your website performs as you say it does and there is no better way to prove this than with solid data on traffic and incomes.
Image: Owen Moore