7 {{ upvoteCount | shortNum }}
7 {{ upvoteCount | shortNum }}

Considering selling online business

by Tracy Warrington
6 replies
  • ECOMMERCE
    • |
Actually one of my product lines. Currently on Amazon and Etsy. It does well with very little input from me (<10 hours a week), but could do so much better. Product is easy to create after a learning curve. I just haven't had the time to put in because my other product line does so much better.

Any guidelines on how to start? I would like to get a general price estimation before I start putting a package together.
#business #online #selling
  • Profile picture of the author Oziboomer
    Originally Posted by Tracy Warrington View Post

    Actually one of my product lines. Currently on Amazon and Etsy. It does well with very little input from me (<10 hours a week), but could do so much better. Product is easy to create after a learning curve. I just haven't had the time to put in because my other product line does so much better.

    Any guidelines on how to start? I would like to get a general price estimation before I start putting a package together.
    Hi Tracy,

    Welcome to the forum.

    The value when selling a business whether online or offline really comes down to a few things.

    There are various so called formulas for working out the business value.

    Firstly I'd say having "Proof of earnings" - the financials behind the business so a prospect could look at to determine what they value the business at.

    A business that is easy to run and has a good ROI is going to sell for a greater multiple than a business that requires more work.

    You mention you are wanting to sell a "product line"

    Does the product line have it's own domain and website?

    I don't think you are going to be able to sell unless you have something tangible to give to the buyer.

    If you do have a domain and proof of earnings then the next thing I would ask is do you have the systems required to operate the business documented?

    A buyer is going to want to know how everything works and if everything is documented you will get a higher sale price.

    Other things like whether the business or product is part of a short term trend or more part of an evergreen opportunity.

    Also whether it is in a sunrise market with future potential or a sunset market where it is already part of something in decline.

    If what you are trying to sell is a handmade type product suited to say "a work at home mom" then the concept could be sold as a biz-op multiple times to different people who might be prepared to give it a go.

    Maybe you can share some more details so others can give their opinions.

    Best regards,

    Ozi
    Signature
    {{ DiscussionBoard.errors[10982204].message }}
  • Profile picture of the author dave_hermansen
    Pretty much, what you get is entirely dependent on the profit that a site makes. Websites sell for anywhere from what 1 to 2.5 years profit are. If it isn't making much money, you won't make much money, no matter what the "potential" someone claims a site has.
    Signature
    BizSellers.com - The #1 place to buy & sell websites!
    We help sellers get the MAXIMUM amount for their websites and all buyers know that these sites are 100% vetted.
    {{ DiscussionBoard.errors[10982288].message }}
    • Profile picture of the author yukon
      Banned
      Originally Posted by dave_hermansen View Post

      Pretty much, what you get is entirely dependent on the profit that a site makes. Websites sell for anywhere from what 1 to 2.5 years profit are. If it isn't making much money, you won't make much money, no matter what the "potential" someone claims a site has.


      Not necessarily true.

      Some folks don't know how to monetize or have access to a niche product.

      Example, If I have a niche product that I own and sell to my traffic, I could buy out a same/similar niche site that's not being monetized but still has relevant traffic.

      People buy traffic everyday, that's the whole point of PPC (ex: Adwords). Taking an educated risk is part of business. You test things on a small scale and move up to larger projects once you've figured out a process that works. In this case that would be buying sites for relevant traffic.

      I'm always amazed how some folks will blow $20,000 (example) on something like Adwords but never buy out a competition site that already has an established authority and a great source of traffic. It doesn't make sense to me. Granted it wouldn't work for some niches but it works for most.
      {{ DiscussionBoard.errors[10982320].message }}
      • Profile picture of the author dave_hermansen
        Originally Posted by yukon View Post

        Not necessarily true.

        Some folks don't know how to monetize or have access to a niche product.

        Example, If I have a niche product that I own and sell to my traffic, I could buy out a same/similar niche site that's not being monetized but still has relevant traffic.

        People buy traffic everyday, that's the whole point of PPC (ex: Adwords). Taking an educated risk is part of business. You test things on a small scale and move up to larger projects once you've figured out a process that works. In this case that would be buying sites for relevant traffic.

        I'm always amazed how some folks will blow $20,000 (example) on something like Adwords but never buy out a competition site that already has an established authority and a great source of traffic. It doesn't make sense to me. Granted it wouldn't work for some niches but it works for most.
        Actually, I made my name flipping websites and do understand your point. We look for sites that are poorly made that rank high - not necessarily ones that get a lot of traffic since non-targeted traffic can be easily acquired but rankings are much harder to attain.

        I do see your point, though, and am sure that for some websites, traffic of any kind is more important than other websites that only sell things to highly targeted traffic.

        My point was more of a general one. People who are looking to buy websites are usually looking for ones that already make money. I my case, I'm looking for ones with fairly decent rankings that are not well optimized, not well designed or that have issues that I can readily see are hindering conversions. Those are the ones that are selling for far less than they are really worth but I can see how ones that get traffic but no sales could also fit the bill in some cases.
        Signature
        BizSellers.com - The #1 place to buy & sell websites!
        We help sellers get the MAXIMUM amount for their websites and all buyers know that these sites are 100% vetted.
        {{ DiscussionBoard.errors[10984045].message }}
  • Profile picture of the author Tracy Warrington
    Oziboomer, Thanks for your very detailed response.

    I guess the technique could be written up as a tutorial and marketed as a work at home opp, but that's not what I am wanting. Already BTDT with a very popular IM tool several years ago. I'm not looking for long term handholding with multiple people. My problem now is that I just don't have enough time to do all that needs to be done.

    For more detail, the product line is a specialized craft type pattern. I have almost 100 CDs available (sold on Amazon) and the products are also listed on etsy as digital downloads, so practically no time required.

    I have a domain, but have not had time to get a website going.

    Sales figures are verifiable through Etsy and Amazon.
    As far as something tangible, I have the nearly 100 products already created, instruction about how to create more, domain name, existing Etsy shop, etc.

    Does this additional information help?
    {{ DiscussionBoard.errors[10983107].message }}
    • Profile picture of the author dave_hermansen
      Originally Posted by Tracy Warrington View Post

      Oziboomer, Thanks for your very detailed response.

      I guess the technique could be written up as a tutorial and marketed as a work at home opp, but that's not what I am wanting. Already BTDT with a very popular IM tool several years ago. I'm not looking for long term handholding with multiple people. My problem now is that I just don't have enough time to do all that needs to be done.

      For more detail, the product line is a specialized craft type pattern. I have almost 100 CDs available (sold on Amazon) and the products are also listed on etsy as digital downloads, so practically no time required.

      I have a domain, but have not had time to get a website going.

      Sales figures are verifiable through Etsy and Amazon.
      As far as something tangible, I have the nearly 100 products already created, instruction about how to create more, domain name, existing Etsy shop, etc.

      Does this additional information help?
      It does not help in determining what it is worth. It is worth what you can get for it. What I pay for sites isn't even close to what I think they are worth. I doubt too many people are paying for the true potential they see in a website; they are trying to buy them for far less than that from people who do not know what they are doing and cannot see the true future value of their websites.
      Signature
      BizSellers.com - The #1 place to buy & sell websites!
      We help sellers get the MAXIMUM amount for their websites and all buyers know that these sites are 100% vetted.
      {{ DiscussionBoard.errors[10984049].message }}

Trending Topics