Buying and Selling Websites

Many website owners don’t realize the equity and value that their online businesses have. There’s a myriad of active marketplaces where other webmasters are buying and selling online businesses constantly. If you fail to realize the profit potential that exists in buying and selling websites, you could be missing out on another source of income.

Your website could have a significant value and you don’t even know it! There might also be gems hidden throughout the various marketplaces that you could purchase and turn into thriving businesses – or use them to expand an already existing business. Let’s take a look…

Selling your Website

Selling websites is an extremely simple task these days. The process only requires you to list the site you are trying to sell on a website marketplace, and wait for the customers to come. The common problem that webmasters (who are looking to sell) face is the pricing: How much should I sell my site for? How much is it actually worth? Is it better to invest in it, or just make a quick sale?

The most important way to value the site is to analyze it’s intrinsic value (what it means to you). This is typically done using the discounted cash flow method. In simple terms, it derives the value of the future cash flow the site is likely to produce, but discounted into today’s terms.

Once this value is determined, it is important to figure out the price the site will actually sell for. I always say that a site is only worth what someone is willing to pay for it. Much like in real estate, however, you can determine a fair market price of your web property by taking a look at similar sites, and making a comparison.

Once you have implemented both of the above valuation methods, you can more easily determine whether or not the site is worth selling. In other words – will it be more profitable to hold onto it, or to make a sale now? If the market price is higher than the intrinsic value you set, it might be worth selling. You may also check out companies that can give you a value report of your website.

Buying a Website

When you are looking to buy a website, you must ensure that you are not overpaying, and that you have performed your due diligence to reduce the risk that you will be getting something that isn’t what the seller makes it out to be. Skepticism can be a great ally when looking to make a purchase.

Those who already own online businesses, and are looking to expand, can often pick up websites for a bargain, and integrate them into their already-established business. Try looking for opportunities to cross-sell by using another website’s traffic or products. A good example would be this: You own a website that sells website templates. You purchase a cheap site that gives away free templates. By integrating the templates that aren’t free into the site, you can generate revenue from the traffic!

I’ve seen several well-constructed websites on the market that utilize only publisher networks like AdSense to produce a profit, when they could have been using affiliate marketing programs. I love to grab these whenever I see them. Remember that the key to success is always having an eye open for potential! One man’s trash is another man’s treasure.