How much will my website sell for / how do you price your websites?
Websites are sold on a multiple of net monthly profit. We typically take an average of the net profit over the last 6-12 months and multiply by a multiple (20X to 60X+) to determine the price. In instances where the site is seasonal or has been earning for several years, we’ll take an average of at least 12 months of net monthly profit. In cases where the business has assets, we’ll add the wholesale or discounted value of the assets on top of the multiplier.
Here are a few examples:
Example 1: Content-based AdSense site that’s made $24,000 in net profit in the last 12 months. We’ll take the monthly average ($2,000) and use a multiple (Let’s say 28X) to determine the price. ($56,000) You’ll receive 85% of the final sales price or $47,600 in this case.
Example 2: Dropshipping Halloween site that earned $60,000 in gross revenue Sep/Oct/Nov and $10,000 in profit. It’s made $80,000 in all of 2013 with $12,000 in profit. They’ve got inventory value with wholesale value of $5,000. Because the site is seasonal, we’ll look at the average net monthly profit earnings from 2013 ($1,000/month) and multiply that by the multiple (Let’s say 20X) ($20,000). With $5,000 in inventory, that puts the price of the site at $25,000. The seller will receive 85% or $21,250.
Example 3: Lead generation site in the education niche that earned $42,000 over the last 12 months with $100/month in hosting costs and $500/month in paid traffic. The site has made $4,100/month in gross revenue, but we’ll subtract the $100/month and $500/month worth of costs, putting the net profit at $3,500/month. Using a multiple of 26X, we’ll list the site for $91,000 and the seller will receive 85% or $77,350.
The multiple varies from 20X to 60X+ and is dependent on a number of factors. (Site age, traffic, stability of earnings, monetization type, traffic diversity, etc.)
To get an estimate of how much your website might be worth, try our Website Valuation Tool.
What happens if my site doesn't sell?
We ask for a 6 month exclusivity when listing your business with us to give us enough time to field deals, offers and negotiate on your behalf. If your business still is not sold at that time, you can either keep it with us and we will keep marketing it or you can de-list it to sell somewhere else.
How long does it take to sell a website via the marketplace?
This varies heavily and will depend on several factors including what platform the site is built on, how much work is required, how transferable the monetization strategy is, how much documentation has been done of the processes, etc. While sites under $100K tend to go quickly, we’ve sold $200K+ sites in less than a month and have had $40K sites take a month or more. We ask for at least 6 months exclusivity to list and sell your online business. We can give you a our professional estimate after reviewing/vetting your site for sale, but remember every business is unique and our estimations are educated guesses not the actual timeline of when your business will be sold.
Do online businesses ever sell for less than the listing price?
Buyers can make offers on your website or business at full list price or beneath. We’ll take the offers to you and you have the option to accept or make a counteroffer.
There may be times when you and the buyer will want to meet in the middle and create a financing plan. For example, 85% of the listing price upfront and 15% over four months. You can learn more about deal structuring and how it works by clicking here.
What do you need from me to list my website?
Our sellers find our process straightforward, but thorough. Our goal is to provide a quality listing for discerning buyers who are looking to avoid digging through a subpar directory to find something worthwhile.
Here's a glimpse of what we're looking for:
- Seller's personal info including name, email, Skype, social media profiles, etc.
- Site details such as URL, date purchased/created, site history, backlinking efforts, etc.
- Screenshots of complete monthly revenue details (gross monthly revenue, net monthly profit).
- Verified complete monthly expenses (Cost of goods sold, VA's, content, advertising, hosting, etc.).
- Google Analytics data/access (Clicky is an acceptable alternative).
What happens if my site doesn't sell?
We ask for a 6 month exclusivity when listing your business with us to give us enough time to field deals, offers and negotiate on your behalf. If your business still is not sold at that time, you can either keep it with us and we will keep marketing it or you can de-list it to sell somewhere else.
How long does it take to sell a website via the marketplace?
This varies heavily and will depend on several factors including what platform the site is built on, how much work is required, how transferable the monetization strategy is, how much documentation has been done of the processes, etc. While sites under $100K tend to go quickly, we’ve sold $200K+ sites in less than a month and have had $40K sites take a month or more. We ask for at least 6 months exclusivity to list and sell your online business. We can give you a our professional estimate after reviewing/vetting your site for sale, but remember every business is unique and our estimations are educated guesses not the actual timeline of when your business will be sold.
Do online businesses ever sell for less than the listing price?
Buyers can make offers on your website or business at full list price or beneath. We’ll take the offers to you and you have the option to accept or make a counteroffer.
There may be times when you and the buyer will want to meet in the middle and create a financing plan. For example, 85% of the listing price upfront and 15% over four months. You can learn more about deal structuring and how it works by clicking here.
What do you need from me to list my website?
Our sellers find our process straightforward, but thorough. Our goal is to provide a quality listing for discerning buyers who are looking to avoid digging through a subpar directory to find something worthwhile.
Here's a glimpse of what we're looking for:
- Seller's personal info including name, Email, Skype, Social Media profiles, etc.
- Site details such as URL, date purchased/created, site history, Backlinking efforts, etc.
- Screenshots of complete monthly revenue details (gross monthly revenue, net monthly profit).
- Verified complete monthly expenses (Cost of goods sold, VA's, content, advertising, hosting, etc.).
- Google Analytics data/access (Clicky is an acceptable alternative).
Do you have more questions about selling your website?
Check out our Extended Website Sellers' FAQ and our Knowledgebase for more answers.