A popular way to make money online is to buy and sell websites for profit, or make websites and sell them for profit. The idea is to take a website that is developed but has potential to be improved, for example some people know nothing of SEO, or just can’t market their products, spend a few months or so working on the site then sell it for more then you bought it.
Getting prepared to sell
A lot of buyers will ask you for traffic information, proof of monthly earnings and profits minus outgoings, commonly people will ask for unique visits per month, the country they are from, and where most of the traffic comes from. To find this information most commonly people trust and use Google analytics, and Google adsense which you can export reports from, Flippa.com will ask you for this information if you want to sell on their website, however if you are not using Google ad-sense, see if you can export any of the data, what will come with the website? Did you buy and licences to scripts, themes or softwares?
How to value your website
The value of a website is determined by multiple factors, however the sale value will ultimately be determined by whoever wants to buy it.
There is no right or wrong way to value a website or a business, as long as your sensible and realistic.
A common way to value a website is multiple x annual profit (usually 12-15 as the multiple) or multiple x annual sales (usually 3-5 as the multiple) .
So If I am making $100 per year, this means that my website is potentially worth $1200.
Often a value is put on the number of customers, registered users, email subscribers or unique visitors to your website.
Valuing based on traffic:
A website may be ranked number one in Google for the keyword “new xbox games”, using Google’s Pay Per Click advertising to pay for a #1 position in the sponsored listing would cost $0.40, 5,000 clicks would cost you $2,000 this is one way of valuing your website based on search traffic.
It is very important to understand unique visitors from other web statistics for example, page views, these are different and can seriously mislead people with little knowledge, the most common factor people want to know is “unique visitors” per month, the best tool that people will trust the source of information from is Google analytics.
Make sure that you are honest about everything in the sale.
Buying a website
Do your research, you may want to consider many factors, however commonly, monthly/yearly revenue/profit and monthly unique visits may be taken into account, as well as some of these:
- Google pagerank
- What keywords are being targeted
- Visitor location
- Subscribers to social media, newsletters, forums etc..
- Extra assets such as youtube channel, plugins, site scripts.
- Sales per month
- Website age and brand recognition
- Seller reputation
- Websites reputation
- Does the site use an open source CMS? If not what support is available
- Consider the websites history and backlink profile
- What could you do to improve on the revenue that is not already being done?
- Do you have the knowledge to take on the sites topic?
Where can I safely buy or sell a website?
https://flippa.com/ – Flippa is probably the most trusted and the best around, it is quite safe to use Flippa to buy and sell websites online, however common sense is always advised online.
http://www.businessbroker.net/ – Safely buy and sell businesses online, including websites.
http://www.ebizbrokers.com/ – Another good site
http://www.namepros.com/ – Good forum and built-in auction that is managed by experienced staff.
http://www.sitepoint.com/forums/ – Very popular choice.
Ignore website valuer sites they are not particularly accurate.
Do research on websites before you buy, ask as many questions as you want.
If you are selling a website provide as much information as possible to save your’s and their time, it may also help to make easier sales.
More resources to read on buying and selling websites:
If you need support on this matter, Stephen has much more experience then me on the forum, you can make a thread and he will help you out.