Once you have some sites that are ranking well and generating revenue, you may want to sell some of them. Here are some reasons for selling some of your sites:
- Minimize risks involved with holding on to all your sites, such as:
- Search engine rankings possibly dropping in the future
- More ads showing up at the top decreasing your leads
- Map pack showing up decreasing your leads (if applicable)
- Receive a lump sum payment to invest more into your business
- Less clients to manage
You should not sell a site until you feel that you’ve maxed out its potential (or at least close to it). This way you can get the most out of the sale.
There should be at least 3 full months of revenue before selling.
Most website brokers and buyers will not even consider a site unless it has at least 3 months worth of Google Analytics data.
Here are your options for selling the site (in order).
- Directly to the business buying leads from the site
- Through a website broker
- List an auction on Flippa
You should first try selling the site to the business currently buying leads from you. Obviously, they are already showing interest from buying the leads.
Although, the biggest obstacle going this route will most likely be that the business owner is not familiar with the market value of websites.
Lead generation sites are often sold through website brokers for around 20 times the monthly profit. Thus, your initial asking price for the business owner should be this.
Keep in mind that website brokers usually take a 15% commission from the sale. So if the business owner thinks the price is too high, you can come down to 17 times the monthly profit and still make about the same as you would with a broker.
Although website brokers take care of most of the sale, you will still have to provide several screenshots and answer some questions about the site. The sale will also take time (at least a few weeks).
Therefore, if the business owner is still not interested and you are looking for a quick sale, you may want to come down in price to 15 times the monthly profit.
If you could not reach a deal with the business owner, your next option would be to go with a website broker.
Most website brokers will not bother with a site unless it generates at least $500 monthly profit. However, some may let you package up 2 or more sites to reach the minimum monthly profit and sell them together.
So if your site is not making at least $500 a month, you can wait until you have some other sites to sell and bundle them together.
Selling via a website broker is fairly straightforward. Simply contact one or more brokers and provide details about your site to see if they are interested in selling it for you.
One recommended website broker is Empire Flippers.
The last option is to sell your site on Flippa. Only do this if you were not successful with the other two options and you do not want to wait to have other revenue-generating sites to bundle together.
The biggest downside to Flippa (as with all public auctions for websites) is that you will receive a lot of questions from people who are not interested in buying the site. They are basically trying to get more information about the site so they can attempt to copy your success. As you can see, this is a negative for buyers as well.
Another downside is that you are likely to get some lowballers offering to buy the site far below its value.
There is also some luck involved since you are waiting for an interested buyer to find your auction.
For the reasons mentioned above, websites listed on Flippa do not usually receive top dollar. Although, there are exceptions.