How To Buy And Sell Websites For Profit
How To Buy And Sell Websites For Profit in this article we cover some important factors that are necessary for a website business, you can buy websites or offer ready-made websites for sale. The popularity of Buying and selling websites has been increasing over the years. People are buying websites to make real money. I have seen many sites that were put on sale just because the owner of the websites didn’t know how to use the website to build their online portfolio. The experienced people buy these websites to make actual money.
People put their websites for sale due to the multiple reasons. They might be no longer wants to run the website, moving from one niche to another, starting a new business or job or just they don’t have time. I will suggest you buy those websites. It will be a new start to your online business. Moreover, you can make a huge profit from these websites.
Related Article: 6 Best Strategies For Buying Websites That Make Money
Sound interesting? Before Buy And Sell Websites, you need to know some important factors.
How Much The Website Worth?
Usually, websites are selling for about 12 times for their income. Therefore, if a website makes $100 per month from affiliate links or ads, its net worth is approximately $1200. Todays, in selling websites, 24 months of revenue is becoming more common.
This website’s varying scale is consistent with your experience. For instance, you sold a website that was making merely a few dollars each month for a great profit just because the design was highly customized and the website had a huge money-making potential. Similarly, you can buy a website that is not making any money but based on your expertise and experience, you can make it profitable within a short period of time.
Always keep in mind that, if you are not making money from your website doesn’t start underestimating its worth. There is someone who is willing to buy your website. Following are some parameters to remember when you are estimating a website’s potential regardless of you are selling or considering to buying.
Related Article: Buying Websites – What You Should Know
Always Remember Location
Brent C, the owner of Vosa.com is an experienced online entrepreneur. He is in the process of selling one of his websites for more than $200,000. From the last couple of years, that website is generating six-figure of passive income annually. The Brent is utilizing the sale to help shift his focus to a new online venture.
Once, I asked Brent, what factors should a buyer and seller to keep in mind when evaluating the worth of their online property? He replied, I have been investing in real estate for over the decade and what I cherish about online real estate is that a number of same principals apply. The online real estate comes down to the location just like apartment buildings and houses.
Do you know what he means? Brent asks to own a “.com Vs.net/.org.” Additionally, he suggests that the prospective buyers and sellers get a number of opinions from the other websites’ owners in the websites’ niche to determine the worth of an online property.
Take the Emotion Out Of It
Generally, the websites’ owners think that their websites are more worthy than they probably are. It could be due to two reasons, either due to the emotional attachment or they think that the website has more potential to be profitable. The thing is that you can’t pay the bills in emotions or potential. Therefore, do your due diligence and negotiate where you see fit.
For instance, your website is just like your baby and selling it could be highly difficult just because you have emotions with it. But still, if you want to sell it, negotiate and let the income numbers speak for themselves.
Related Article: Tips For Buying Websites That Make Money
Think through Your Business Objectives
It’s extremely easy to get caught up in the excitement of big payouts. However, before you enter the world of buying and selling a profitable website for sale, sit back and think about your business goals. Online buyers are generally of two types.
- A financial buyer is always looking to get a high return on their investment. He buys an online business to harvest a percentage return every year.
- Another type of buyers is strategic buyers. They look to acquire a business that adds to their existing business. They always look for one plus one equals three situations.
Financial buyers are typically more concerned with their income and hard numbers. However, strategic buyers are less focused on the income. They are more interested in what an additional website property would add to their current portfolio. For instance, you buy a website that doesn’t have a strong metrics by itself but when added to you your online portfolio of websites, it provides advertisers a number of options for package deals.
If you want to sell a ready-made websites or online property that is not generating a lot of revenue, look for strategic buyers. If you really want to pursue the online business of buying and selling websites for profit yourself, then 1st become a financial buyer. It will help you to make a profit.
Once you have established a solid portfolio of money making websites properties, you can shift over to being more creative and strategic with your online property buying.
How to Buy Website For Sale
Are you ready to buy websites for sale? Consider following steps:
1- Make Money On Your Own Website
Usually, people are reluctant to buy ready-made websites for sale until or unless they understand how to monetize a website. I advise you to buy a website once you learn how to make money from your own website.
2- Always Look For Dormant Websites
You need to use your network to search for a website that has not been updated for months or even years. Tweet out a message saying you are looking to add a website to your online portfolio. Once you get some options, send the owner of the website an email, email likes, I have noticed that you have not updated your websites lately. I am interested to buy it if you want to sell your website. You can also look for marketplaces such as Payme0 and Flippa. These sites regularly sell online properties.
Do Your Due Diligence While Buy And Sell Websites
Make sure to do your due diligence before you decide to buy a website. If you are buying a website through an auction site, look for listing notes such as websites stats, and history etc. However, if you are buying independently, ask the owner to provide you the proof of revenue and traffic using screenshots.
Always ask for 2nd and 3rd opinions from friends in the same or related niche. Experienced individuals will be able to look at websites’ metrics and make sure the site is legit. They will also help you brainstorm ways and strategies to improve the websites and establish a network before starting to buy other websites.
4- Done The Deal
When you buy websites through forums such as Flippa, you send and receive payments in a number of ways. I suggest using escrow. As a buyer, you are safe, because you actually get ownership of the website before authorizing your payment and the seller can visualize that you have put money in escrow. It means that you can afford the buying and are not going to take the site and run.
Always have a contract, when you buy websites for sale independently. Be as safe as possible by getting everything on paper. However, if you feel more comfortable have an attorney look over the contract.
Related Article: Factors To Consider Before Buying Websites For Sale
5- Transfer Ownership Of The Website
Basically taking over the online property might include moving servers and transferring domain names. You can directly work with the seller to manage these technical aspects or you can hire someone to assist you.
How To Buy And Sell Websites
Once you have built up ready-made websites for sale, you might be ready to make a profit on your efforts.
1- Establish You Websites’ Worth
Before selling a website, ask from few of your friends working in your niche about the worth of your website. You can also multiply your monthly income by 12.
If your website or Buy And Sell Websites are not generating any revenue yet, compute the amount you have spent on the websites’ design. Also gather supporting information including traffic, traffic patterns, and social media accounts associated with your website and other features that depict value to a buyer. Even if your website doesn’t generate an income, it could still have value.
Related Article: What to Look For When Searching For Websites For Sale
2- Advertise Your Website For Sale
List the website on auction sites such as Flippa. You can also contact a trusted friend to sell your website or anyone who is selling websites. Sometimes, you get buyers within your network.
3- Negotiate And Close The Deal
Be as helpful as possible While discussing a deal, be as helpful as possible. Give a prompt reply to emails and answers to the buyer’s questions. Get everything on paper. If you need any technical help to move your domain name, hire someone to ensure the transaction runs smoothly.
Whether you fabricate and sell your websites or buy an established website, one thing is obvious that you can make a serious profit from selling online properties.
Buy And Sell Websites can be a worthy online business venture. However, just like any other business opportunity, it also comes with risks. The key to success is to be consistent and passionate about your websites and work hard to make them succeed. Get help whenever you need it. Also get 2nd opinions and learn from mistakes.
Have you ever buy or sell websites? How was your experience? Share your thoughts in the comments. Thank you for taking time to read this article.