Selling a Website: 4-Step Framework
This 4-step framework explains how to sell a website. The steps include the valuation process, positioning your site, listing your site, and post-sale process.
Selling a content site is a great way to obtain a large amount of funds upfront instead of collecting the monthly income.
The process of selling a content site can be broken down into a 4-step framework:
Check out the details of each framework along with further reading materials below:
The first step in selling your website is to understand the valuation process, what goes into it, how it is done, and what levers are in your control. Understanding this allows you to prepare your site for sale to maximize valuations.
On average in 2021, content websites are selling at 30 to 40 times monthly average profits, or in other words 2.5 to 3.33 times annual profits. The average profits are calculated usually using the profits from the last 6-months or last 12-months (if the niche is seasonal).
Example: if a site is earning $1,000 per month on average across the last 6-months, then the site can sell for around $30,000 to $40,000
DealFeed.io is a discovery tool that aggregates sites for sale from the top brokers in the industry. From DealFeed, as of October 17, 2021, 1221 websites have sold through the top brokers.
Here is a breakdown:
Using these statistics, you can understand roughly what has been the ideal multiple for different monetization structures.
To continue learning about how to value niche sites, read the following detailed guides.
6-step framework on how to value a website. Read more.
Analyze current sites for sale for reference. Use the tool!
Download: Website Portfolio Financial Model. Read more.
Framework to value starter sites (no revenue). Read more.
Once you are ready to sell, you need to position your site to maximize valuations. Most valuation methodologies utilize a 6-month average. It is in your best interest to ensure 6-months prior to a sale, you are doing everything to position the site.
At a high level this is what you can do to prepare:
For further details on how to position your websites for sale, review the following write-ups.
Checklist of tactics to prepare your site. Read more.
Tactics to make your site into a real business. Read more.
Now that you understand the valuation process and how to position your site for sale, it's time to list it. There are four main ways to sell:
As a rule-of-thumb, if you are running an affiliate site, always reach out to the brands you are promoting. They may be interested in acquiring the site. After that, you can either list with website brokerages or direct listing on marketplaces like Flippa. Both have pros and cons.
Here are detailed articles of each brokerage:
Check out these detailed guides on where to list your site for sale:
List with The Website Flip for a quick sale. Read more.
A detailed hands-on rundown of each broker. Read more.
Congrats! You've found a buyer. Now the post-sale process begins. If you used a broker, they will guide you through the process. If not, you are on your own. Regardless, it's important to understand the ins and outs so you know your expectations.
Here is the high-level process:
Here are guides to help you through the process:
Choosing the right Escrow service is key. Read more.
Check out our other detailed guides:
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