How much the business/website worth and for how much it's possible to sell?

Maybe contact a bunch of business brokers (easy to find on Google), and see what advice they have?

And have a look in FaceBook and LinkedIn Groups on business, entrepreneurship, start-ups, etc. . . . some of those have some spam, but there are genuine posts as well, and plenty of people with money to invest looking for a business to buy (I often see posts from people wanting to buy a business), and online businesses being ideal right now

Chris

Assuming the business' figures can be INDEPENDENTLY VERIFIED, valuation depends on a series of factors

First, it depends on how much repeat orders or long-term contracts it has

It also depends on how big of a % of its business is from ONE OFF orders

Finally, it depends on how CLOSELY connected the business is to the PERSON who started it / ie., one man band that scaled up but customers still see the founder as THE business.

Service sites don't usually sell for a large MULTIPLE unless it's well organized to address the issues above

It's not unusual to see 6 figure service businesses crash to ground once it's sold since many of the clients end up voting with their feet

Passive income sites with ORGANIC traffic, on the other hand, are worth the money ... if their traffic is durable

One of our services is that we broker eCommerce website sales for both sellers and buyers and I can give some basic parameters ...

Generally speaking, a website sells for somewhere between 12 months and 36 months of profit. What affects those numbers the most are the number of years a website has been operating and whether the numbers are progressing upward year over year or declining year over year.

Another factor is whether or not the business is "evergreen", selling products or services that people have been using for many years and will continue to use for decades to come. That type of website is worth substantially more than one that is selling a "latest fad" type of product or service.

Another factor is how easy a business is to run. Does it take 50 hours per week of your time or does it only take 5-10 hours? People will pay more for a business that takes less time to manage. Time really is money, but in this case, less time means more money!

There are plenty of companies that buy and sell websites as their business model. It is what I used to do to make money. I would find a website that could be improved a lot and offer to buy it from the owner for a reasonable price, knowing that the site was really worth at least three times that much once I made the tweaks it really needed. So, a website that is making decent sales despite being poorly made or poorly marketed is worth a lot more to a potential buyer than one that is running perfectly. It doesn't mean you will get any more for that website necessarily; it does mean that you might have more interested buyers which MAY drive the price higher.

Finally, a huge factor that can sometimes get you higher multiples like 48-60 months worth of profit is whether or not you are selling your own exclusive brand (obviously this usually only applies to selling physical products unless your service has some exclusive software that other companies do not offer). The harder it is to replicate your business model, the more money you are going to get for it.

I hope this helps!

Years ago I had a ecommerce site that sold golf clubs and a rather large golf equipment site wanted to buy our little site. A broker contacted us several times, we probably should have sold. Anyway we asked the broker what would they pay. The broker told us at the time, we should get between 5 and 10 years of sales. Not sure if that is what it is now.

al

List it and its specifics on Flippa...it will give a good idea of what it's worth. Probably more than you think and less then you want.LOL

Thank you guys for so many informative and useful info/answers!

My business is selling digital stuff, not physical, so do you think it's harder to sell such business instead of ecommerce website where psychical items are sold?

No fixed price but certainly the revenue it generates and the niche are some of the things that must be considered when pricing a website.

A website is worth whatever someone is willing to pay for it. My suggestion is to aim high, and keep working on it. If your business is good, someone will eventually buy it, even if you're asking for a higher multiple than what most people recommend.

You can sometimes sell a website and get up to 10X - 15X the monthly revenue of the site. This happens only very rarely when you can prove that the income has been steady for 2+ years.

Usually you only get about 5X revenue. Check out Flippa listings to get an idea of what people are willing to pay for different types of websites.