At FE International we have an array of experience selling both large and small websites in a variety of niches such as health, fitness, writing, photography, fashion, travel and sports to name but a few. If you’re interested in selling your niche website or blog, here’s answers to some common questions you may have:
Why Should I Sell My Niche Website or Blog?
For the same reasons that it’s a good time to buy an online business, it might also be the right time for you to exit your business. Is now the time to sell?
- Did you have an exit date in mind and you are closing in on that 1-3 year mark?
- You built your website purely with flipping in mind and now it is time to cash in.
- Now that you’ve had experience with this online business you might want to sell your website and buy a more passive online business within the same niche or try a different business model.
- You’ve lost passion for your current business and aren’t giving it the appropriate attention.
- You want to start another business and you want to release the cash tied up in your asset and invest in your next venture.
- You may have personally taking your website to its growth potential under your ownership but it could be taken further by a buyer with different skills.
What is My Niche Website Worth?
When it comes to website valuations, there is a lot of inaccurate information and generalization out there. There are automated tools out there which are not fit for purpose. No tool out there can provide an accurate valuation, it only gives an arbitrary result, which is usually extremely far from reality.
At FE International, the average sale price is approximately 2-3x annual net profit for businesses in the sub-$5m range. More specifically we use “seller discretionary income” instead of net profit. We ‘add back’ costs that are not requisites for the new owner but you have taken for personal benefit, for example, a company car and owner distribution.
There are no standard industry multiples for any online businesses or websites. An experienced website broker can provide an accurate valuation by combining industry experience with thorough analysis of all aspects of your business.
Do your homework and avoid brokers who provide extremely high valuations such as 5x annual net profit or generalised multiples with no variables taken into account. This tactic is used by some disreputable brokers to entice sellers to list their businesses with them. What will likely happen is that your business will remain listed for months and not sold. You as the seller will spend less time working on the website and the revenue and value of the website will decline.
If you would like to learn more about the process, you can read this more detailed resource on internet business valuation.
How Can I Increase the Value of My Niche Website?
Valuing a niche website is dependent upon a variety of factors but here are some for you to consider that will increase its value:
- A history of stable or growing revenue.
- A growing niche or industry, upward trends for a specific topic.
- Solid backlink profile.
- Frequent posting / updates over past 6 months.
- An engaged and active large mailing list that is monetized.
- Website is correctly optimized for mobile.
- Diversified traffic sources e.g. PPC, organic, referral and social.
- Streamlined and scalable systems and processes.
- No past or present legal issues.
- Hands off and minimal owner input.
What are My Options for Selling My Niche Website?
If your website is making less than $500 per month, we would recommend selling your website through a marketplace such as:
If your website is making between $5k-$1m net a year we recommend that you work with an experienced website broker. A website broker can provide advice and support throughout the sales process. They can also provide guidance on how to maximize the value of your website before you sell.
Why Should I Work With a Broker to Sell My Website?
A dedicated website broker helps people like you who want to sell their website or blog. Here are some of the benefits of working with a broker:
- Brokers will have a pre-existing network of qualified buyers who are interested in niche websites like yours.
- Selling a website is time consuming and a broker can help you avoid the pitfalls.
- Choosing to sell a website needs sound decision making and a broker can provide objective advice throughout the process.
- Non-disclosure agreements means that the sale of your website will be kept confidential.
How Do I sell My Niche Website or Blog?
Working with a broker allows you to access their expertise and knowledge which are invaluable when it comes to selling your online business. FE International have the largest full-time team in the industry and have completed over 300 transactions. We have a wealth of experience selling niche websites.
At FE International, we generally ask for three things upfront to establish a fair valuation of your website.
- Access to Google Analytics to check traffic data.
- Ideally, 12 months of financial accounts (more is even better).
- We’ll ask some simple questions about your website.
We will then conduct due diligence on your website and assess it to establish a valuation. If your valuation is below what you wanted to exit at, we can provide advice on how to increase the value of your website. If you’re happy with your valuation, we can then help you sell your website.
For more information about working with a broker, try our Seller FAQ.
How Long Does it Take to Sell a Niche Website or Blog?
This will depend upon the size of the website, the business model, the individual seller and the complexity of the deal. Naturally, larger and more complex websites will take longer to sell because of the larger investment at stake and the due diligence required. Smaller websites with less moving parts and high-levels of automation, are sold quicker. At FE International, 85% of online businesses sell within 60 days.