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Selling Without Website Broker? You’re Leaving Money on the Table

This guest post is by Jock Purtle of brokercorp.com.

So you want to sell your blog?

Your site is probably making more than $3,000 per month and you know that it might be worth a decent amount of money.

Image copyright Rido - Fotolia.com

Recent sales like that of the Huffington Post give you confidence that your content-based site has value to other webmasters or investors. And with the growing move of advertising dollars to the web, you could be the next person in the sights of cashed up buyers.

You have collected all the basic information that you think might help sell it, like domain age, monthly revenue, monthly expenses, growth trends, time to run the site, unique visitors and page views, income sources, and income proof.

You think you’re ready to sell, and are looking forward to a big payday.

You’ve heard of sites like flippa.com and you are thinking about listing the site yourself. However, have you considered using a website broker?

There may be some hidden benefits that you have not accounted for when selling your site this way.

Full disclosure here: I am a website broker, so I can answer this question in full. A website broker is a business broker for websites. They help webmasters sell their ebusinesses. They evaluate the website, and position it to sell for the highset price possible for the vendor.

Here’s a list of general tasks that a website broker performs:

determine an appropriate valuecompile a business memorandumprepare a marketing strategy for the saleinterview, educate and show the website to potential buyersassist in negotiationassist with due diligencedraft and present offerscontrol information flowprotect sellers’ confidentialitylook after paperworkhelp complete the sale (including contracts and funds transfer)provide after-sales support.

Website brokers assist in the entire sales process. When selling a site, the brokerage process is similar to that of a real estate agent. There is an agreement between the agent (website broker) and the vendor (website seller) for selling an asset (the website).

A broker will normally do their own due diligence before listing a site for sale, to make sure it is saleable in the current market. Once both parties are happy, and the seller gives instructions for the broker to sell the site, the broker will then prepare a sales memorandum (sales document) to be used to market the site and create competition between buyers. This document contains the website financials, traffic stats, and a general overview of how the website works.

Buyers then view this document and decide whether they want to make an offer for the site. They sign a letter of intent (LOI), and then get a set period for final due diligence. Then, if all parties are happy and a price is agreed on, contracts will be signed, the seller will receive their funds, and the buyer will take ownership of the website.

Brokers normally have a unique method of selling a site. This includes specific marketing channels that the average webmaster doesn’t have access to, like a network of buyers, subscriptions to business classified sites, and investment firms.

Generally, a website broker will fetch higher multiples than auction sites or owner listings. If you look at our websites for sale you will see the general asking price is around multiples of two to three and a half.

An example of this is a site we recently sold. The owner was a single mom who built up a great blog about parenting. It had over 4000 pages of unique content, 30,000 monthly uniques, a strong community with lots of repeat traffic, and was monetized through advertising and affiliate sales.

The site was getting to a point where the business was putting pressure on her family time, and she wanted to sell. Her 12-month net income was $25,203. She came to us thinking that the site was worth about $30,000. We eventually sold the site for $68,000.

It normally takes about two months to finalize a website transaction. However some sites can take a week and some six months—it really depends on the site in question. The longest part of the sales process is normally the due diligence and the back-and-forth between buyer, seller, and broker.

Some buyers need more time than others. If buyers request things like tax returns or older financials, it usually takes a little while longer.

On average, a broker will charge around 10% of the total selling price for handling the sale of your property. Some charge more, some charge less, but that figure is a good signpost to run buy.

This fee is due after the site is sold, and you have the money in your bank account.

No. Brokers work on 100% commission basis. If you don’t get paid, they don’t get paid.

The best sites to sell through a broker are those valued between $50,000 and $5 million. That’s generally a site with $2,500 or more in monthly revenue.

A typical exclusive agency agreement lasts around 90 days. Good brokers will provide you with a 30 day out clause that basically means that in the first 30 days if you aren’t happy with them you can cancel your agreement, no questions asked.

Have you ever used a website broker, or bought a site sold through one? We’d love to hear your experiences in the comments.

Jock Purtle is a Senior Broker at Brokercorp.com. They are a full-service website brokerage specializing in website sales and acquisitions. Jock is currently offering a free website valuation at http://brokercorp.com/sell/.

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6 Lessons I Learned Selling a $50,000 Website

This guest post is by Chris The Traffic Blogger.

My hands were shaking like crazy and I had to focus very hard on entering my bank account information correctly. Just minutes prior a buyer had been approved for my website on Flippa (see the actual auction page here), and I had to somehow manage to calm down to fill out my escrow payment options.

The bid was an astonishing $50,000!

Yeah, that amount was almost enough money for the down payment and closing costs of my first home combined. Even now, when I think about it, I still get chills up my spine at the sheer amount of money that my website sold for. If I had been a little more patient, I may have been able to sell it for closer to $75,000, especially with the steady $4,000 it was earning per month on autopilot.

Today I’d like to touch on six major lessons I’ve learned from selling my first website for so much money. It’s my way of saying thank you to Darren, Georgina, and all the contributors of this fine community for your support and advice over the years. Also to you, the reader, for your comments, emails, and patronage.

I felt that escrow was essential for providing a safe environment for selling my website. The way it works is like this: if the buyer cheats the seller, then escrow holds the money until the seller’s goods are returned. If the seller cheats the buyer, then escrow charges the seller for the transfer fee and cancels the transaction entirely.

I also liked all the options I had for presenting my information on Flippa, such as attachments, a chart of the last year’s earnings, and even Google analytics. All this information was readily available on the auction page, along with countless other little details.

The only major snag in selling the site occurred when the buyer couldn’t figure out how to use my EPP codes and login information to transfer domains from my hosting provider to his.

This was one of the reasons why I went through so much stress and agony trying to sell my website—I didn’t totally understand the process either, nor did I have the experience of knowing how to transfer the domains to the buyer.

I lost about three nights’ sleep before I calmed down enough to come up with a solution to the transfer issue. Instead of trying to get the transfers done between the two of us, I had the buyer change my personal information on the domains to his and also my passwords so that he essentially controlled my domains.

Now the transfer process was on the buyer, not between the buyer and seller, since he owned the domains. This decision allowed us to move forward with the escrow payment process, instead of getting bogged down in figuring out the technical issues of transferring between hosting providers. I think I actually had a few hours of sleep that night!

I had a blogspot.com domain changed to .org about two years into the site’s existence. When I went to enter my .org site’s age I put down three years. However, Flippa detected that the .org extension was only available for the past year and said that I was basically contradicting the evidence Flippa had discovered.

There was no way to go back without completely cancelling the auction, so I probably lost a few potential buyers to this mistake.

I knew why I was selling my site six months prior, when I decided that I wanted to focus on other projects. I intended on using the influx of quick cash and free time to build up other projects.

To achieve the selling of my site which was so dependent upon me to survive, I then had to go about the process of replacing myself with a team of writers that could blog in my stead. The new owner was pleased to see a writing staff, as that meant he could take over without needing to create his own content. This was the only reason I was able to sell the site in the first place—otherwise it would be like Darren selling problogger.net years ago when he was the sole contributor. It just wouldn’t have worked.

Google Docs were amazing for listing all the account logins, instructions, and writer information that was needed to run the site without me.

Given the time difference between the buyer and myself (I was on the US East coast; he was in Malaysia), Google docs provided us with a convenient method for storing information and communicating, and it worked out far better than hundreds of small emails would have.

I understand that you most likely do not have a website worth $50,000, but that you would love to get it to that point. If you are serious about blogging and want to turn your hobby into a business, then you need to create a sales funnel.

A sales funnel is simply a system for obtaining leads, building trust, and finally converting leads into buyers. Even if this is simply a post series that you link to, it’s better than nothing. Whether you use email marketing or advertise products on your sidebar, you need to have some method for determining how much money you can make per new subscriber to your site. This will enable you to make calculations regarding what services you could afford to outsource to and still make a profit while growing your site.

Even though building backlinks is crucial for growing your website, you still have to focus a large portion of your effort on your sales funnel, or else you’ll be gambling instead of taking calculated risks.

I’ve learned a lot from this process, and unfortunately I couldn’t possibly fit it all into a single post. I have compiled everything I learned from this experience into a downloadable report which can also be viewed online if you don’t wish to download it. There’s no opt-in: this is my way of saying thanks to you!

Have you ever sold a website? I’d love to hear what you learned from the process, too.

Chris is a self proclaimed expert at showing bloggers how they can get traffic, build communities, make money online and be successful. You can find out more at The Traffic Blogger.

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How To Become A Best Selling Author

Have you considered repurposing your articles and collecting them together to create a book?

It’s much easier to write and publish a book than you think, and being an author will give you massive credibility.

http://lynnelee.com/howtomarketyourbook

If you’ve written a book or are thinking about writing a book I highly recommend you listen in to these virtual workshops so that you can avoid the mistakes that many authors make when publishing their books online.  You can join in from the comfort of home… I’m planning to be there.

Discover what to do and what not to do, avoid making costly mistakes and discover the strategies you need to help you sell more books.

http://lynnelee.com/howtomarketyourbook

Kathleen Gage shares how to Become an Online Bestselling Author in Today’s Crowded Author’s Market

Denise Wakeman shares the secret to Author Blog Success and how to dominate your Niche with a Book Blog!

Connie Ragen Green shares a key strategy for repurposing your existing content to become a Bestselling Author!

Felicia Slattery reveals how to leverage the top 5 places authors are invited to speak about their books!

Brian Jud shares strategies selling more books to non-bookstore buyers!

Lynne Klippel ways to easily create products beyond your book.

Jill Lublin shares powerful strategies for getting your name from unknown to newsworthy in almost no time!

Marnie Pehrson shares ways to Create a Buzz About Your Book

Penny Sansevieri shares how to maximize and monetize your social media with Fans, Friends, and Followers

Steven E Schmitt helps authors around the world become bestsellers and he will be shariung how he does it.

Dana Lynn Smith reveals The Secrets to Planning a Profitable Virtual Book Tour

It’s not too late to grab your seat Book Marketing Conference Online Access Pass…

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The Art of Creative Nonfiction: Writing and Selling the Literature of Reality (Wiley Books for Writers Series)

This book is for the beginning creative nonfiction writer--one who needs to be told that writers are an eccentric lot; one who has never heard of the Yaddo artists' colony. Still, Lee Gutkind, the author of several books of creative nonfiction and the founder/editor of the journal Creative Nonfiction, has some interesting things to tell us about this genre of writing, which strives to communicate real-life stories dramatically. The most important quality that a creative nonfiction writer can have, writes Gutkind, is passion: "A passion for the written word; a passion for the search and discovery of knowledge; and a passion for ... understand[ing] intimately how things in this world work." Gutkind offers instruction on finding story ideas, focusing one's work, keeping story files, fact checking, and interviewing; he tells us what to expect from editors and agents; and he teaches us how to know when we're ready to start writing (when you can "think of nothing more to ask or to learn"). Perhaps the best tidbit here is Gutkind's emphasis on delving deeply into one's subject matter without inserting oneself into the situation. "While immersing myself in a writing project," he says, "I routinely like to compare myself to a rather undistinguished and utilitarian end table in a living room or office. It is a fixture. You walk in and out of your living room dozens of times a day. You see the table, you expect to see the table, but you do not say, 'Well, there is the table, hello table.'" Appendices include a sample book proposal and readings.

Price: $16.95

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When is the right time to start selling?

This guest post is by k from Brandon Yanofsk of B-list Marketing.

If another blogger that you've ever asked, "when is the right time to start selling on my blog?", you know you never get a solid answer.

Some say as soon as you a person visiting your blog.

Some say never to start selling until you have at least 100 subscribers.

And some say sell before you 10,000 people on your email list is premature.

However, I'm here to straighten and give you a solid answer.

But before I give you that answer, I need to explain something.

Everyone thinks of the sale as something nasty — something you don't need to do. They think of shady car sellers or cliche snake oil salesman. In fact, someone trying to rip them off.

It is no wonder then that people do not want to sell on their blogs.

Instead of calling the "sell", let's call it what it really is: providing a solution to a problem.

Now, let's rephrase the original question:

Copyright NatUlrich-Fotolia. comIf someone runs to you and says: "Hey, I need your help", you would reply with, "Sorry, I'm not selling right now."?

Of course not. You would jump right in and help.

So, is the right time to start selling on your blog:

Once you have a problem and a solution for this problem.

It doesn't matter if you are a Subscriber, or 100,000 subscribers. Once you have identified your readers, it's time to create a solution.

I know of a blogger who has a very, very healthy trailer. Yet he fails to make a sale. The reason is: he's not providing a solution to a problem his readers face. He just creating products and buy them hope someone.

On the other hand, I've seen bloggers who have very few subscribers. They still have a very healthy company selling products. Why? Because they identified a problem their readers face, and the solution.

So, don't let people tell you there are a number of followers you need before the sale of products. It does not exist.

Instead, ask yourself two questions:

1) I Found the problem? and 2) I can provide the solution?

Looking for more tips on creating a blogging business? Check out Brandon Yanofsky (Canada) site B-list Marketing where he teaches you how to create a blogging company your readers know, like and trust.

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