I’m a huge fan of buying websites as a business model (I’ve purchased 3 more websites recently), but one thing I run into frequently are sellers that don’t know how to really sell their own property. There are a couple reasons for this with the first reason being that the property really isn’t worth any money, but the more common reason is lack of experience. I’ve been involved in transactions as low as $500 all the way up to 7 figures (as a buyer’s consultant) and 6 figures for one of my own recent website sales and I’ve learned a few things about how to sell your website for more money that I’d like to share with you:
Table Of Contents
- How To Sell Your Website For More Money:
- Step 1: Your Website Must Actually Be Making Money
- Step 2: Provide Detailed Analytics And Income History
- Step 3: Don’t Wait To Sell Your Website Until It Starts To Lose Traffic And Money
- Step 4: Provide Suggestions On How To Improve The Website’s Traffic And Income
- Step 5: Promote Your Website Listing
- Real Life Case Study Example: How To Help SELL Your Website
- Buying Websites Can Be Risky!
- A Question For The Comments Below:
How To Sell Your Website For More Money:
Step 1: Your Website Must Actually Be Making Money
It’s very difficult to sell a website that isn’t making money unless it has a really desirable domain name attached to it so the first step is really to actually make money (sounds obvious, but from what I’ve observed people still don’t get it). I made an entire free course on this topic so I won’t cover how to get your website to make money in this blog post. I continue to get emails from people trying to sell their website for $10,000 when it’s only a handful of articles on the-crappiest-domain-everinfohq.biz.
Step 2: Provide Detailed Analytics And Income History
I highly suggest you create a new Google Analytics account for each website you own because serious buyers like to be given access to your traffic information via Google Analytics. The biggest concern is that if you use the same Google Analytics account people can find out other websites you own when they see what your tracking ID is i.e. UA-123456789-1. I’ll explain how people can do this in a future blog post, but for now just remember to create a new analytics account for each website. Buyers are looking for a steady trend of traffic moving upward or at the very least a long period of time with the traffic at the same level.
Income history is another essential component because buyers want to know how much money the website made from each income source. For example, I bought a website recently that was making money by selling a medical eBook on Clickbank and I wanted to see the income history all the way back to the first sale over 1.5 years ago. Buyers also want to know if a seller has ever used other monetization methods along with the results from those tests because that can affect the options for future growth.
Remember, the longer your website has been making money the more money you can get for selling it. The less income history you have the more risky the investment is for the buyer and subsequently the less money you can make selling it.
Step 3: Don’t Wait To Sell Your Website Until It Starts To Lose Traffic And Money
The most common line I get from people is “I just don’t have anymore time for this project” followed by “This website has a lot of potential” or “It used to make $X,XXX and the traffic used to be XXX,XXX but now it’s $XXX and traffic at XX,XXX” A lot of these issues come down to knowing when you should sell, but most importantly you never want to try selling when everything starts to trend downward otherwise you’ll receive a lot less money then before. Buyers place little emphasis on what something could become when compared to what it already is. In other words, as a buyer I don’t care that the-crappiest-domain-everinfohq.biz could become a massive money making machine because I have to direct most of my attention towards working with what the website is doing right now (both in terms of income and traffic levels).
Step 4: Provide Suggestions On How To Improve The Website’s Traffic And Income
As a seller, you will know more about your website than any buyer so part of what can help you extract the most value from the property is by giving an action plan to the potential buyer. As I alluded to before, finding out how the website has tried making money in the past (and either failed or succeeded) will help shape a strategy moving forward. Likewise, a plan to improve the traffic to the website will help the buyer see possibilities as well. Now it’s important to remember that his is only one small component to selling your website for more money because as I mentioned before buyers will always focus most of their attention on what the website is doing at this very moment in time.
Step 5: Promote Your Website Listing
Part of the reason why I sold one of my websites in a deal worth six figures is because I used a broker to help promote my listing. Flippa has done great things for this industry, but they aren’t always the best place to sell websites. The broker’s job is to create interest in your website by shopping it around to high net worth clients and that’s why they get paid a commission on the sale; however, not all websites will be big enough to get a broker to help sell them. In most cases, you need to be the one to truly SELL your website. I’m in the process right now of shopping one of my niche sites around to various competitors that actually make the product I’m promoting as an affiliate on my website with the idea that they can gain additional market share by taking over my website along with the top rankings in Google. This strategy can work and is another way to think creatively about where to sell a website. As a seller you want to go to where the market is and make sure they know about your website listing because most often they won’t come to you.
Real Life Case Study Example: How To Help SELL Your Website
I haven’t tried doing this before, because at this point in my business I’m more focused on website acquisitions as opposed to selling my properties, but I saw one seller actively promote his website sale through other blogs related to the website niche. The website was CPAoffers.com which ultimately sold for $35,000 through Flippa. I saw this seller promote his listing through Wicked Fire where he was an active forum member, through the Warrior Forum, through another webmaster forum and even on John Chow’s blog as well as Jonathan Volk’s blog. Now with the exception of the blog posts, the rest of his promotion was probably free and those links are just what I was able to find with a little bit of research after I saw the first promotion go out about the website sale. When I first saw the website being advertised it was going for about $20,000 and eventually sold for $35,000. It’s entirely possible that due to the promotional efforts that the buyer went through to get the word out about the website that he was able to get a higher price and all because of a little bit of work he put in and potentially some money spent for the sponsored blog posts.
Buying Websites Can Be Risky!
The reason why these factors contribute towards selling a website for more money is because they put the buyer’s mind at ease. Would you feel more comfortable buying a website that’s been making $1,000 a month from Adsense since 2007 or a website where the seller says the average income is $1,000 when in fact the income history shows they’ve only ever had one $1,000 month and it was during the holidays? I’ve had a few bad purchases and I’ve also had some good ones, but there are always opportunities to make money in the area of buying and selling websites.
Reminder: We’re very close to launching our coaching/course on buying and selling websites. I partnered with some brokers who’ve literally sold millions of dollars worth of websites to help create content for the course as well as help me lead the live lessons. If you’re interested in this business then be sure to sign up on the early bird notification list here. I have a feeling that it will be a ton of fun to help teach people this business and that I’ll get to know a lot of the members as well because we will be capping the number of people to get in for this first version.
Sign up to be notified of the opening here
A Question For The Comments Below:
Are you currently trying to buy websites or looking to sell one of your own websites? Discuss in the comments below and I’ll try to share some of my advice.
I just don’t understand why you would ever sell a website unless you think that it’s money making potential has peaked and things are on their way down. Or you just want out of the niche I guess. Any website of mine that is making money, I hold on to!
I think I’ve said this before, buying a website would scare the crap out of me because it could be hit by Panda, lose its rankings, and overnight have i’ts traffic go way down.
Hey Jack,
Well you could be doing it to raise capital for bigger and better things. For me all of the businesses that I’m trying to build are being done so with the idea of growing them into even bigger ideas / companies and a dinky site making a few hundred dollars a month might just be worth selling off so that it doesn’t distract focus from the bigger fish.
Buying sites can be risky yes, but there is potential to make very good money with website purchases as well.
Chris
AWESOME TIP, Chris!
Exposing each of my niche websites has definitely been one of my biggest concerns.
I’ve actually just been creating entirely different Google accounts to keep my different niches separated, and did not realize you could do it the way you’ve shown in the image above too. I’ve just verified, and guess what – that’s how I’ll be doing it from now on…
Hey Wes,
Yah any website that people can find because they know the IP of my blog here I’m not concerned about them finding. I have several other hosting accounts that have no ties to this website and so far no one has really messed with those. In any case most people won’t go through the effort to find out what you’re doing but if you just plain tell people on a public blog what website you own etc. then you’re opening yourself up to some copycats and potentially some unnecessary extra competition.
Chris
Yeah, I’m not overly worried about it, but I do like to keep my Google tracking IDs as separate as possible. I was separating Groups of sites by creating entirely new Google accounts, which I still might do. But it’s great to know that I can now separate them even further by creating a new analytics account for each website being tracked within that Google account.
Since I haven’t been too worried about it up to this point, anyone that’s familiar with a some of the super-spy tools can definitely link most of my sites together still. But that’s okay for now.
Yah for the most part I don’t have a ton of sites that people can easily compete in against me (at least ones that they can find) ๐
Chris, thanks so much for this information! I have been looking at this and I even have a domain name for sale right now to check it out.
I really appreciate the section on the risks. I never thought about that. That helps greatly!! Have a great week!!
Scott
Hey Scott,
Glad I could help ๐
Great tips. It is easy to see why it could be valuable to have someone with experience help with buying and selling websites.
Thanks Jeff
Excellent post Chris! When I finally decided to start selling it took me forever to find good information on maximizing value in listings. If someone takes even one piece of advice from this post it could easily double their next sale.
Hi
I have bought over USD50k worth of sites already so I learning a lot as well. One risk that I am currently facing is Panda. A site I bought for 18k and earns about 1.5k per month has now been reduced to only 300 per month due to a drop in rankings. Have you faced such situations and if so, what do you do?
Hey Aaron,
Yes I have had some bad purchases in the past. I had one site that I bought for $6,500 and a fluke thing 9 days later lead to Adsense being shut off on the URL; however, I can see why they did it and we’re in the process of getting it back.
This topic is enough for a separate blog post alone so I’ll write one on how I’ve since learned how to minimize my risk as much as possible when buying websites.
Chris
It’s great to see that extra effort in promoting your site can get you bigger rewards at auction. You can use this situation in anything really though so it’s a lesson not to just sit back but to be proactive.
What perfect timing for this post, I am planning to sell a site and have been struggling with some stuff that you discussed here.
Can you elaborate some on how to actually set a price?
I understand the earnings aspect, but aren’t site authority, Page 1 Google rankings for very high competition keywords and niches and superior content also important factors that go into the sale price? This goes greatly to potential.
I would think that many Page 1 rankings in Google (that is result of a 100% natural backlink profile) for keywords that have millions in competition can be worth quite a bit to a savvy marketer?
Thanks Chris
Hey JR,
It’s actually a pretty simple formula for pricing a website and I should have actually said this before so this is another idea for a blog post that I’ll cover. But really it’s just the monthly revenue minus expenses and then multiplied by a value i.e. 10 on up.
If the site is new and has wild fluctuations you’ll get a lower multiple
If you built the site in the 90’s the traffic and earnings have been rock solid for years then that site’s looking more like 36x monthly (maybe even more)
Those are just two examples but I”ll do a more in depth blog post on this.
Hi Chris,
Thanks for the post. In the end it is down to common sense.
I have just started buying websites recently, and one thing I do is avoid sites that are already ranking #1 for their main keyword. If I am going to pay the same amount for a site that is #15, I will take that one because it has room for improvement and it can increase my ROI.
As you said, if the seller points how to improve the earnings of the site you will be more likely to buy as it will be a better investment.
Hey Carlos,
Yah exactly. You can get a price discount if you buy a site with lower rankings and then you know that if you’re good at SEO for example you can invest your time into building those rankings up and improve the monthly income etc. hold for a certain period of time and then sell it.
Chris
Hey Chris,
This is my first time on your site, I really liked the stats and recommendations that you made, particularly the one about creating a new Analytics account per site to provide for the website customer.
I don’t know if you answer to questions in your comments section but I’ll give it a shot anyway:
I currently have just one Google Analytics account and after googling this I found out I can create more GA accounts.
So my question is, can I create as many accounts as I need or is there a limit?
Thanks,
Sergio
PS. I subscribed to your list!
Hey Sergio,
I haven’t run into a limit yet, but I do have one Google Analytics account where I never bother creating a new one and that’s the account for this blog. Because if I create something for sale like a WordPress plugin etc. I’m not planning on selling those and even if I eventually did I don’t care if the buyer saw that the analytics were tied to my blog.
Chris
Thanks for the tips – particularly the one about setting up a different analytics account for each site.
Hey Rick,
Glad I could help ๐
Chris
this is the fantastic guide one one of the most overlooked business in my blogging journey!
Thanks for showing the right way. Surely this will help me get started in selling my couple of high traffic websites..
Looks like you are getting into a nice niche with the website sales side of things Chris. Watch out Guthrie Castle! Here he comes.
Hey David,
Best way to grow a business is to buy growth ๐ so yah that’s why I’m focused a lot on buying websites and then using that new income flow to buy even more websites etc. etc. and on.
Chris
Buying the right websites and selling at the right time is very important. Certainly, if I ever plan to buy websites I’d never want to invest in one on which I’ll have to start from a scratch. I came across a lot of information through this post which I should watch our for before investing in one.
Showing statistics to potential buyer of the site would be the greatest technique to sell it quickly. The rest will follow.
Great post, Chris. I personally love the business model of selling websites. I have actually sold one already, and have several in development for future sales. You’re right they must be making money though, and consistently too. You have a good list of tips though, I learned a bit from this post. Definitely be back for more!
I’ve never purchase a site before, but have been wanting to for a while, and I think I will this week, I’ll set some time aside to start shopping tomorrow.
With Panda whipping websites back and forth every month, I’m actually surprised that buyers arn’t asking the seller whether their site is Panda-proof.
If you were the buyer in this instance, what sort of response from the seller would convince you that their website was indeed Panda proof?
I don’t think you can guarantee a website will continue to get traffic after you purchase it, because there is always the inherit risk that the traffic / income could take a hit after you take ownership. The biggest way to avoid this problem is to do your research on their link profile before you even start talking on price. If there aren’t a bunch of high quality links etc. and they’re all from article marketing / blog comments you know that you’re looking at something more risky than if you trace some links back and you see links from places like Engadget.com for example.
I have been thinking of selling a site or two. When you sell, do you have to go through your host company to transfer the site, or can you do it without their help?
The burden of transfer is generally placed on the buyer, but if you have root access and so does the buyer (and you’re both using cPanel) the transfer is a breeze.
That’s good to know. I don’t have to signup for another account at my current hosting company. The blog/site that I am planning to sell is on the root. My blog is being hosted at Bluehost. I’m sure there are some posts out there about step-by-step of the transfer from one user to another.
๐
Great resource about the factors to be considered for selling a website. But would like to know few things about newly developed websites especially designed for selling purpose. I mean, such sites doesn๏ฟฝt have any traffic and authority. So what would be the price in that case?
I don’t bother building these as it’s very low hanging fruit – not a lot of money to be made.
I saw a post on webmasterworld where this guy bought a pandalised website, fixed it up and got a 600% increase in traffic.
I think you are right – lots of people wait too long to sell and that creates opportunities for others
I thing the website that has decent traffic can be sold at high price, but these kind of sites are very rare.