This lesson will teach you how to sell or buy a website or a social network.
You can make good profits if you have a well-developed site with good traffic and original content.
First of all you have to know your strategy.
How Much can you sell Your Site for?
As in every business transaction your site is worth as much as someone is willing to buy it from you.
According to some brokers, generally an e-business website is worth three to six times earnings before interest and tax, so if your site profits are $200,000 you have an asset worth $600,000.
For social networking sites this figure could be even higher.
Let's assume we are going for 3 times annual earnings and it means that if new owners will leave the site as it is, they will break even in 3 years.
Prepare for Due Diligence and provide some analytics figures such as Traffic Analytics, PPC vs organic placement rankings, conversion rates, average sale, revenue per unique visitor, etc.
Prepare a breakdown of sales revenues by channel: organic traffic, PPC traffic, newsletter, affiliate program, etc.
You have to know your income sources. If you generate income from only AdSense or another sole revenue stream, your website may be worth less in terms of a purchase price than a business with several revenue streams.
Prepare your website traffic statistics including unique visitors (averages and totals), pageviews (averages and totals), growth rates over time, geographic spread of uour visitors, how much traffic comes from search engines and direct bookmarks, which keywords your site is popular for and the PageRank of your site.
Prepare a good written sales letter introducing your website and it's history, why you want to sell your site, what your site offers to the new owner (current financial and future potential) and any other important factors. Don’t give away your asking price up front but certainly make note of the important factors, such as traffic figures and if your site is profitable.
Searching for buyers.
When you look for buyers you should contact first individuals or companies that operate in the same market because they will be the easiest to sell to.
You can also check if it is worth for you to sell your website via special website brokers. For cheap websites there is a special Ebay section where you can put your website for sell.
When buying/selling site it is important to know whether the content all original. You can use special sites such as http://www.copyscape.com to check a sampling of the pages. A good buyer will insist that the seller guarantees that all material is original or to state the percentage of non-original or "spun" material.
We also recommend you to check out these great complimentary resources:
For your online networking success and until next time.