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The Definitive Guide to Selling a Website

February 19th, 2010 by Brandon

The Definitive Guide to Selling a Website is a series outlining the ins and outs of taking a web business or established website ‘to market’.  We’ll show you how to take the proper steps to make a lot of money.

C.R.E.A.M.


One of the most exciting parts of being an entrepreneur is an EXIT a.k.a. a liquidity event.

Liquidity event = selling all or a piece of your business.

Selling a business is a common path to individual wealth. (There are other terms for “selling”, i.e. refinancing, selling partial ownership, and so on. These all fall under the category of a liquidity event.)

Many people say real estate is where the wealthy keep their net worth… well, selling a business is where they earned that net worth.

Selling Your Website or Web Business
Selling your website may not necessarily make you a millionaire, but a liquid six-figures or more sure sounds like a nice shot in the arm, eh?

Especially if your website is a sideline to a day job, that amount of money could allow you to become self sufficient and work on growing businesses that you own, day in and day out.

The sale itself isn’t making you rich in many cases, but it’s sure affording you the opportunity to have a better shot than most!

Our Experience
From our experience, there are a few categories of internet business sales. We’re not VC-backed, Silicon Valley hippies, we’re just a group of hard working entrepreneurial marketers that build real businesses on the web. We’ve had 2 successful exits and created many more sustainable businesses online.

That’s where we’re coming from.

On that note, our numbers may reflect “regular Joe” dollars. The fact is – the vast majority of internet businesses are sold in the sub-$5,000,000 range and this area is really our sweet spot.

Here’s the deal sizes we’ve had experience with and I’ll delve into more deeply in this series over the coming weeks:

Low End – Sub $100,000
Middle Market – $100,000-$2,000,000
“Big Deal” – Over $2,000,000

This represents our experiences and what we’ve learned over the years. It is NOT necessarily representative of anyone else’s experiences.

  • drobinsonx
    Good intro, guys. The hard part is shopping a company under $2M, where investment banks don't want to take it on. We need some good marketplaces that are free of crap sites where solid websites and applications can be offered for sale. It isn't Flippa or BizBuySell.
  • I couldn't agree more, however the industry is still in its infancy - we covered this in our blog "Our Industry Needs a Hero".

    We had many people contact us who are on the verge of setting up new marketplaces. The ones that will last, are the ones that are very selective about the sites they list.
  • Good point on the site-for-sale websites. I cited those examples because
    they're the best places I know of despite still being really crappy. Any
    ideas on a model that makes it worth someone's while to weed through the
    junk and still have enough volume to make it an active marketplace?
  • drobinsonx
    I've been thinking about it a lot. There's a need for something better for sure. There needs to be a site that has "vetted" listings instead of the junk listings. Some very valuable sites don't have revenue at all (see the latest Flippa auction for retweet.com), and should sell for their traffic or membership, while other sites are easily valued on their revenue. How do you create a matrix for things of "value" that eliminates offerings for bad sites with lots-of-dashes and end in .info? Such a site would attract a better class of buyers, and ultimately better and better sellers.
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