Web Site for Sale! - Advice Before You Sell Your Website
Only 27% of all websites that are put on the market are sold. This is a shocking statistic to most people trying to sell a website. If you follow the tips below your chances of selling dramatically increases.
Have All Records Ready Before You Attempt to Sell
Have these items ready before the website goes on the market to be sold: The last 3 years of federal tax returns for the website being sold, the last 3 years of financials (profit & loss statement, balance sheet), the last 3 years of monthly bank statements, etc - many parties during the selling process will need this info - serious website buyers, lenders who will provide financing for the buyer, as well as others. Also make sure you know what the correct Adjusted Net income has been for the last 3 years. Serious website buyers will want to know this. Adjusted Net income is: Net Income + Owners Salary + Depreciation + Interest Expenses + Other Website Expenses Deducted (that may not be website expenses to the new owner of the website).
Have a Professional Website Valuation Performed
Getting a 3rd party professional website appraisal/valuation is important and critical for the process. Most websites put on the market NEVER SELL usually due to too high of a price placed on the website being sold. Getting a professional 3rd party valuation is well worth the expense and will be utilized by many parties during the selling process: possible website buyers, financing companies for the buyer, and others.
Keep a
Transaction Folder
Keep a folder of all contacts, notes, and paperwork for your website for sale transaction. Keep a log of all buyers who contact you - get their phone numbers, email address and keep notes about them. You want to make sure you have backup buyers in case your first choice drops out during the negotiation process. Keep all escrow info, purchase agreements, signed non-disclosure and confidentiality forms, contact phones of CPA’s, attorneys, etc. and other pertinent data/info in this folder.
Write Up a Comprehensive Summary of The Website
Buyers are going to need to know many details about the website being sold. Instead of having to explain repetitively to many buyers about the website, and possible forgetting many important details, make a summary of the website being sold. Include: History of the website, date established, important attributes about the website and market niche which it occupies, what you would recommend to a new buyer to improve website performance once they take over, what demographic group the website serves, the competition, the reason for selling, how much training will be provided after the sale, etc.
Confidentiality Agreements Are Important
Have all potential website buyers sign a Non-Disclosure/Confidentiality Agreement before giving out any info. Make sure potential buyers understand how important it is to keep the sale of the website confidential and that there are legal ramifications if they don’t.
Maximize Exposure to Serious Buyers
One of the most important items is to make sure that many, many qualified buyers see the website is for sale. Nothing is more important that getting the word out to the right website buyers. Yes it does only take one buyer to buy the website, but the objective is to have multiple buyers competing to buy your website. Only VotanWeb weeds out the 99% of “website lookers” from the 1% serious website buyers.
Get the Website You Are Selling Pre-Qualified for Financing
It is natural for you to think that it is the buyer’s responsibility to do this. However, if you want the absolute best price, then you would be wise to invest some effort into searching for financing for your website. This is a critical step, because if a buyer can’t get financing from a lending institution then he will typically ask the website owner for help with financing the website. By researching financing options early, you will know what some very important options will be for potential website buyers without a lot of time being wasted – and time always works against you when selling a website.
Keep the Negotiations and Communications Moving
Remember, time always works against you when you are selling a website. Make sure when you are negotiating the contract, purchase price, etc. that you are always moving forward. Don’t let any situation sit too long - it will most likely kill the deal!
Get the Signed Purchase Agreement into Escrow
Get the signed purchase agreement into escrow immediately and sign off any contingencies quickly. Make sure you go through the Allocation of Purchase Price in the beginning of the escrow process not at the end which happens most of the time.
Set a Time Limit for Due Diligence
Due diligence by the buyer should only last 4-14 days. Since you are going to be organized and ready with all important info and documents, this is all the time any competent website buyer should need to investigate the website for sale. You do not want the website off the market for a prolonged period so be firm about the length of time for Due Diligence - get it in writing (in the purchase agreement) and make sure all parties to the transaction stay with the schedule!
The Website is Not Sold Until You Have the Money
Always continue to collect names of website buyers and their phone numbers etc. even if you are in escrow. You want to make sure you have a successful deal and a website buyer that is going to complete the deal. Try to have 2-3 potential website buyer back-ups who are willing to take the buyers place within the escrow should the current website buyer drop out.
Keep A Positive Attitude
Keep calm and a have a positive attitude. By following these steps you will definitely find a qualified buyer for your website! Things happen pretty quickly when selling a website. If you are prepared, follow through with all buyers professionally and keep up on the selling process, you will be successful!