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Selling My Online Business...

by wolfmmiii
16 replies
So I got to talking to a guy at my kid's soccer game this evening about my online business and he asked if I would be interested in ever selling it. I mean, he was talking about the entire thing: forum account, rights to my guides, my software, my customer list, my website, etc.

Although I never thought about it, the discussion piqued my interest. I mean, I'm doing very, very well online (Amazon sites not included). Using the typical 12x-15x monthly revenue model valuation plus the value of the customer base and products themselves, we are talking well-north of $60k (possibly as high as $90k).

Now, I don't think I'd ever actually pull the trigger because I really enjoy it but it can't hurt to at least investigate how such a transaction should/would go down.

Is this something that would make more sense letting a broker handle? Do businesses like this sell on flippa? Is flippa even the right venue for such a transaction?

Anyone have any experience with such a transaction?
#business #online #selling
  • Profile picture of the author fin
    Maybe a lawyer?

    I think that's what the guy from Get Rich Slowly done.

    Also heard someone did it on Flippa and would NEVER go down that route again.
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    • Profile picture of the author wolfmmiii
      Originally Posted by fin View Post

      Maybe a lawyer?
      This was my first thought but I figured brokers would be more experienced with listings and sales (ie. "virtual" realtors).
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  • Profile picture of the author jamesrich1
    Here is a site that specializes in that: BizBuySell - The Internet's Largest Business for Sale & Franchise for Sale Marketplace

    Google "how to sell your online business" and you will find a ton of info on this.
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  • Profile picture of the author wolfmmiii
    Yeah, I did some Googling but I was hoping someone here could maybe share his/her experience. It's not something I want to spend too much energy on since selling my business isn't something I'm actively looking to do.
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  • Profile picture of the author wsmreviews
    If you do decide to sell it just make sure the contract is thorough and protects yourself. Ive bought and sold many web businesses. Most often I write my own simple 1-2 page contracts or just use the standard flippa contact for smaller purchases, but once I paid a lawyer nearly $1k to cover me on a larger purchase. His contract was nearly 20 pages long. Flippa is not always the best avenue for selling certain types of web businesses, sometimes you can do better selling locally and advertising it on Craigslist.
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  • Profile picture of the author sbucciarel
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    I'd go with a website broker. LMC of the WF might be able to tell you who to go with (he has a large buyer's list himself). Rick Latonas is a website broker Latona's Website Brokerage - Established Websites for Sale
    Thomas Schmale of WF is a broker.
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    • Profile picture of the author fluffythewondercat
      Selling is something every business owner should look at every few years.

      Without knowing more about your business I can't advise you and I'm sure you don't want to tell.

      We made an offer to buy an offline business (aviation) earlier this year. Ultimately my husband and I didn't see eye-to-eye on it (I was for, he was against) but the offer inspired the owner to look for a new direction and perhaps put all his ducks in a row should another buyer come along.

      This is a fantastic time to buy a business. With interest rates on cash nonexistent and likely to remain so, a profitable business can be a great investment.

      Prepare to justify your valuation by having your books ready for examination.

      fLufF
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    • Profile picture of the author wolfmmiii
      Originally Posted by sbucciarel View Post

      I'd go with a website broker. LMC of the WF might be able to tell you who to go with (he has a large buyer's list himself). Rick Latonas is a website broker Latona's Website Brokerage - Established Websites for Sale
      Thomas Schmale of WF is a broker.
      Great info. Thanks Suzanne!
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  • Profile picture of the author zxboss
    Yes complete websites get sold all the time on Flippa, theres a huge market out there just waiting for the right site to come along to buy.
    You will need to provide evidence of traffic, and income earned monthly to have a successful auction.
    A lawyer will just be a waste of money in my opinion..
    Make the transaction through escrow to be safe, you can also have a reserve price incase your auction doesnt go as well as you thought it would.

    Goodluck
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    • Profile picture of the author wolfmmiii
      Originally Posted by zxboss View Post

      Yes complete websites get sold all the time on Flippa, theres a huge market out there just waiting for the right site to come along to buy.
      You will need to provide evidence of traffic, and income earned monthly to have a successful auction.
      A lawyer will just be a waste of money in my opinion..
      Make the transaction through escrow to be safe, you can also have a reserve price incase your auction doesnt go as well as you thought it would.

      Goodluck
      Yeah, but this isn't just a website. It's a handful along with my products, customers, persona, etc. At numbers this larger $60k-$90k, I don't think a lawyer would be a total waste. The last thing I would want is to have someone coming back after me due to some dumb loophole in a contract that I missed.
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  • Profile picture of the author WeavingThoughts
    Honestly I would never sell a business for just 12 months worth. I would rather keep it. Offline businesses sell for 10-20x annual profit and to sell for less than 5-7+ times doesn't make any sense to me at all. Just keep working on it and within 1.5 years you would probably have paid for your time factor as well.
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  • Profile picture of the author quamism
    Flippa can be an ok route to sell your business if you have the time to deal with the negotiations, listing, buyer qualification, and then dealing with buyers who end up backing out. In my experience, many more website deals fall though on flippa then though private brokers.

    Also, many times by using a broker you will get access to professional investors, institutions, and other high-profile buyers who don't have the time to sort though all the junk listings that make up flippa.
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  • Profile picture of the author Andrew Mak
    i found one site showing all the website sold with big amount, Flipping Enterprises | Website Broker | Buy and Sell Websites

    anyone know this website?
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  • Profile picture of the author Brendon Zahrndt
    If you are at all serious about the prospect of selling your online assets you would do well to visit experienced-people.net and recruit the services of the site admin, Clinton. This won't be free.

    You'll find both Rick and Thomas over there in addition to many 'successful behind the scenes' folks who will give you valuable information as you pursue your exit strategy further.
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  • Profile picture of the author MEDUJEWELRY
    if you have a solid base of revenue and its tied forum and such why sell for 1 times annual profits sell for 4-5 at least 400k is worth checking out think of what you could build
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