Hello,
I am thinking of selling my retail website that is 6 years old. It produces a monthly income of an average of $500 to $800 per month profit (net) so about 6000 to 9600.00 per year profit. It is definitely a part-time, runs itself home based business for extra income
I dropship with reputable suppliers and my items are high end tapestries. I sell about 5 to 10 items a month. All I have to do is
when I get a sale, forward it to my supplier and wait for a ship notice. It is the easiest money. However it took me 4 years or
hard work to get it to bring in continual income. I did a lot of SEO on it and most are permanent links, I have articles, other suppliers to recommend, and the site has the potential to bring in more if someone wants to add other products. I just dont have the
time and I am working on other things. It would include the domain name, all back links, training until buyer was comfortable and
it’s basically turnkey. With a little more investment, marketing and adding other products, it can probably
make twice or triple. I just need the cash now and I want to work on other things. It has a page rank 3. About a thousand visitors a month but could be more if a buyer wanted to invest more in adwords. Thanks…
To run it costs 47.00 month hosting and for the actual website which is beautiful, and I spend about 30.00 to 40.00 per month on adwords plus I get sales from organic traffic too.
Okay, your question is unfortunately vague. what it CAN sell for … is what ever you can get and there are an ENORMOUS number of variables to that.
Certain things can increase the value, such as having multiple email lists with leads/prospects in one or several from various sources for different purposes, and then various paying customer email lists. Having something like that can increase the value A LOT.
Also, what about your current competitors? Could you create something of a bidding war with them? (if so, more for you)
Do you “need to sell fast”? If so, much less for you.
Consider getting a business broker and see what they can do … but off the top of my head, if you need to sell fast, look for maybe one years worth of earnings. If you can hold out for a good deal, then you could climb that up to 3 to 5 years worth of earnings. Just remember that you have to pay your business broker out of that (about 20%)
mattgoffrey is right, it can sell for anything. However, given the figures involved, it’s unlikely a “business broker” would be interested (I’m talking proper business brokers rather than the unregistered, self-styled brokers who assist with Flippa type listings).
so about 6000 to 9600.00 per year profit.
That’s vague. The more vague you are the less accurate the valuation feedback you get. Is there a reason why you quoted that wide range when you have the real stats to hand? Buyers see obscurity and assume you’re hiding something. Instead of quoting a range you could provide the exact gross and net profit per year for the last three years.
Thanks for your advice. I do not need to sell it fast and I have to keep in mind that it is extra income for me. It would only be worth selling if I could get a few
years profit for it. I can’t see there being a bidding war since my competitors only need one site and this type merchandise is not something you sell a lot of. But
the amount of items sold and minimal work involved is the easiest money.
Hi and thanks for your advice. This is the last 2 years profit. It averaged about 6000, but then jumped up to close to 10,000 profit this past year. Why? I don’t
know since I haven’t done anything different.
Car companies will often have several “brands”. Even after GM “trimmed down” there is still Chevy and GMC which largely make the same vehicles with different names. By a competitor having their site AND yours they now have multiple sites with multiple first page rankings allowing them to control the market still further.
I do not need to sell it fast and I have to keep in mind that it is extra income for me. It would only be worth selling if I could get a few years profit for it
That’s a serious disincentive for a buyer to deal with you.
It takes time and trouble to do the due diligence on a potential purchase. The best buyers are sick and tired of doing DD that doesn’t lead to a purchase and have learned to filter out the prospective sites that are less likely to lead to a deal. Sellers stating that they don’t need to sell often believe that such a statement somehow serves to encourage buyers to bid higher. In fact, it’s a good incentive to walk away.
Buyers want to deal with a seller who is motivated to sell and is willing to accept whatever the market decides is the best price (via open auction).
I both agree and disagree with this at the same time. OF COURSE a buyer wants to deal with a “motivated seller” because such a seller will take less for his company than it’s worth.
I can tell you ABSOLUTELY that LOTS of companies/websites/whatever are bought outside the “open auction” process. In fact, MOST are bought outside the open auction process.
The best purchases are when a competitor buys you out or when someone wanting to enter the market via acquisition makes a purchase. It’s why I specifically asked about competitors.
FURTHER, someone that doesn’t “need” to sell can wait around for the right deal. The deal that DOES net out 3 years of earnings … instead of the 3 to 6 months of earnings I see people being raped for in the auctions.
I’m aware that most “proper” businesses are bought outside of online auctions, but that’s not the point. Even if it were, that doesn’t apply to lower value sites - most of these lower value sites are too cheap for a broker to bother with.
My point is the comments made by the OP about not being keen on selling and about holding out for a certain self-determined value…is a mistake often made by novices. They believe it makes them look more exclusive and will result in higher priced offers. It doesn’t. It makes them look arrogant and pretentious and it turns buyers off.
Whether the site gets to auction or not auctions often provide a comparative pricing indicator.
instead of the 3 to 6 months of earnings I see people being raped for in the auctions.
Nobody is being “raped”. If you feel the prices determined by a competitive market are too low I suggest you mortgage every asset you own and invest in these “undervalued” properties.