For the majority of businesses, the end goal is to eventually sell that business and sell the website to another entrepreneur who wants to take the reins and simply enjoy the profits from the sale.
According to the Steven Endrizzi MBA, CEO of BizBroker24, the largest E-Business Merger & Acquisition Company in the world, the general equation is quite simple: (monthly revenue) multiplied by (a factor of 24-36). This multiple will vary based upon a variety of factors.
Here are a few other factors that influence the value of your site:
- The net profit of the site
- Growth trends
- Age of the business
- The site’s link profile
- The business model
- The niche of the business
- Competitors
- Traffic numbers (Google Analytics)
Selling your website can be challenging process. From determining how much your website is worth to finding a buyer, there will be many challenges and obstacles along the way.
Traffic Value
If a website is not earning income through ad revenue or sales, another way to determine its worth is to evaluate its traffic against keyword pay-per-click rates. PPC is the rate that advertisers pay each time a user clicks on an ad. Advertisers bid on relevant keyword phrases to drive traffic to their websites. The more in demand a keyword phrase is, the more it costs.
Domain Name
A website's domain name can be used to negotiate price. A few factors that assist in determining the value of a domain name include its name, name length and top level domain name extension. A website that uses a popular name or keyword as its domain name is valuable. A short domain name is easy to remember, which makes it valuable. The most common top-level domain name extension is ".com." Most Internet users apply it as a default, so a website with a less commonly used extension such as ".net" or ".tv" is worth less than one with ".com" address. A website that owns all possible domain name extensions that redirect visitors to one place has a high value.
Website Age
An older website brings brand recognition and an established audience that increases a website’s worth. An older website most likely has more back links and better content, which means more traffic. A website that has been parked and stagnant is worth considerably less than a website that has been maintained and developed over time.
Buyers generally fall into three main categories:
1) Private Investors
These could be individuals, partnerships and small teams.
2) Private Equity/Funds
These funds have been entering the market at a consistent pace over the last 5 years and are becoming more and more sophisticated. a fund that buys businesses of varying sizes with entirely different business models.
3) Strategic Buyers
Strategic buyers generally have an existing business/investment in the same or complementary niche. They may view an acquisition as a bolt-on to their existing assets and will look to benefit from synergies and economies of scale across the two (or more) businesses.
BizBroker24 has listings of over $50 million in online businesses for sale. It is ranked among the top five firms for E-Businesses mergers and acquisitions (M&A) globally, as well as regionally in the United States, Europe, Middle East and Asia. BizBroker24 has helped advice clients on some of the largest and most innovative transactions in the marketplace. In the last year, BizBroker24 has advised on more than 75 transactions in a range of sectors and geographies.
BizBroker24 purchases fully operational online businesses that thrive based on content. Acquisition targets include established online businesses like E-Commerce Stores, Drop Shipping Businesses, online magazine, online brands, blogs, marketplaces, forums and more.
Bizbroker24 is especially interested in unique websites with high traffic, relocatable businesses, home based with revenue between $50,000 - $10MM / Year.
BizBroker24 consultants combine extensive transactional expertise with a deep understanding of specific industry sectors to support their clients.
If you are considering a sale of your business and would like a Free no obligation valuation of your business, phone us on + 1 (786) 350-1560 or simply send us an Email at info@bizbroker24.com to complete a free business valuation form and we will contact you in confidence.
About BizBroker24.com
Founded in 2009, BizBroker24 has accelerated to become the largest E-Business Merger & Acquisition Company in the world listing over $100 Million in businesses for sale with partners in the United States of America, Europe, Asia, Australia and Middle East.
At BizBroker24 we specialize in the listing and sales of websites and internet businesses, we focus on internet businesses with transaction valuations between US$150,000+ and US$20 million.
Media Contact:
Company Name: Digital Marketing Int. Ltd
Contact Person: Robert Sarner
Email: Send Email
Phone: +44 653 65963266
Address:24 Greville Street
City: London
Country: United Kingdom
Website: http://bizbroker24.com/