Selling Your Website for More Than It’s Worth
Selling a website can be difficult for many, as the going rates are typically lower than other types of sales. And to make it even more complicated, there are no set standards for what you should sell your website for. In this article, we will discuss how to grow your business in order to make a higher value and also different ways that you can evaluate how much your site is worth.
Benefits of selling a website
The number of websites for sale on sites like Flippa and Shopify make it seem like anyone can sell a website. However, do remember that you have to pay the monthly hosting fees, so the expectations of current or future revenue should factor heavily into your decision. Apart from this, there are also other factors to take into account when doing the calculations such as: -A product that’s surging in popularity -Timing – enter too late and the peak will be over -Your personal circumstances – if it’s time to pursue other opportunities
Estimating the value of a website
You can get an estimate for your website by checking its worth on one of many website valuation sites that are available. Companies like Wappalyzer will also be able to provide you with an estimation as part of their website scanning process, and they won’t ask you for any up-front payment or form submission. Most websites sell for 24-36x their monthly revenue (also known as the ‘price-to-sales’ ratio) and you’ll want to run your figures through this formula. We recommend that you check the prices of companies like your own that have been through an acquisition, as well as sites in the same niche and make a decision based on what you have found.
Valuing websites from your competitor
You might even think that they would want to negotiate with you because they see you as competition. Plus, they might be afraid of stealing your potential clients by offering a lower amount and then upgrade their price in the future once they have the number of followers.
Estimating traffic and competing domains
Graham Dalton states that your “audience, niche, and quality” should help you estimate traffic and competing domains. If it’s worth more than the purchase price then you have a good chance of getting your asking price. You also want to make sure your site rank higher than any competitors so they’ve come across your website first in a Google search.
The importance of domain name extension in determining domain value
Domain name extensions (such as .com, .org, and .info) are an important part of determining the total value of a domain. The more prestigious the domain name extension is, the higher market value it will have. For example, a terrific website with long legs may still sell for $1 million if it has no domain name extension at the end because that’s what the buyer is looking for – one that looks lower-levelish. But if you apply for the keyword rich dot com extension, the site will sell for a lot more. Lower or second level extensions include available, com
How to get a better out of pocket deal when selling your website
A lot of initial owners of websites want to get the most out of their purchase so they list out what they got in return for their money. This is not a good way to negotiate as it devalues what you are selling! Follow these four steps: be honest, keep your numbers realistic, keep their needs in mind, and provide numbers, not just descriptions.