Do you own a website that gets a steady amount of traffic and makes money every single month? If so you may be considering selling your website in hopes of getting a nice payday.
As you very well know, website flipping has become big business. More and more website owners are using it as a way to liquidate some of their online assets. As of 2015 Flippa.com, the premier destination for those looking to sell a website has processed well over $100 million worth of transactions.
Some popular sites sold on Flippa include the Inquisitr which sold for $330,000 in 2011, and FaceMash, Mark Zuckerberg’s original website, sold for $30,000 in 2010.
So as you can see, if you have a website that brings in revenue every single month, there is a good chance you can sell it for a profit on a site such as Flippa. The key is to make sure you know how to get the most out of the platform. If you are thinking about selling your website, here are 5 steps you need to follow.
Step #1 – Start Analyzing Your Traffic
Before you put your website up for sale you should try to get at least a year worth of traffic data. One of the first things potential buyers will look at is traffic data. They want proof your site is generating as much traffic as you claim. The easiest way to do this is by installing Google Analytics on your website. Its a free tool and will provide you with all the traffic data you could ever want or need.
Step #2 – Keep Accurate Records of Monthly Revenue
It is very important you keep accurate records of all income you generate and expenses you incur from month to month. Revenue is without a doubt the number one thing buyers will look at when evaluating a website. If you don’t have accurate records it will be very difficult to prove your site is profitable. Even if your site is brand new, start keeping accurate records from day one.
Step #3 – Find Out How Much Your Website is Worth
Before you sell your site, you will first need to get a general idea of the value of your site. Generally speaking, websites sell for up to 3x the amount of yearly profit the site generates. That’s why it is so important you keep accurate records.
Step #4 – Set Everything Up
Now that you have done your research, its time to set up the auction. Sites like Flippa make it very easy for you to list your website for sale. The key is to be as transparent as possible. If you withhold pertinent information, buyers will be hesitant to bid on your auction. The more you can let potential buyers know about your site, the better off you will be.
Step #5 – Accept Payment Via Escrow
If your site sells, it is recommended you only accept payment via escrow. This is the best way to keep both you and the buyer safe. If you use Flippa, be sure to use their free escrow service. Once the money is in escrow you will receive an email notification. It is at that point you should begin transferring the website to the new owner. Once the transfer is complete the funds will be released. You should receive the funds within 5 days.