What You Need to Know to Buy and Sell Websites

You can think of buying and selling websites like helping a family member who has fallen on hard times. You know your loved one has intrinsic value and limitless potential, despite a recent job loss. The answer could be as simple as a haircut, a new suit, a polished resume, and a fresh burst of confidence - paired up with the right opportunity, of course.

There are tens of thousands of ailing websites out there. Some of them churned a pretty penny in their heyday, but languished when owners failed to maintain the content or website architecture. Some of them are making over $1,000 right now as is, but the potential to make $5,000 a month is obvious to anyone with a few dollars and a few hours a week. With a low barrier to entry, buying and selling websites for profit isn’t terribly difficult once you know how to get started.

How to Determine Website Value and Buy A Website

There are several qualities to look for in a potential purchase:

• You want to find a website that has room for improvement.

  Often, these websites had a great foundation, but the previous owner was so focused on other aspects of the business, the website fell by the wayside. Check the site’s Alexa rating and make sure the website architecture is built on a common coding platform that is easy to update. Go for a premium domain name with natural keywords. You can always pay for content later.

• You want a website that is easy to manage.

  A website may come with support included. If you have a site that already has writers, SEO professionals, or a team associated with it, then that’s less for you to worry about. Some sites essentially run themselves with very little oversight.

• You want a site that offers clear analytics and earnings history.

  The amount of money a website is making and where that money comes from will determine the price the website will sell for. If there is traffic, but limited conversions, there could still be an opportunity to improve SEO or advertising to monetize the site.

• Avoid the pitfalls.

  Assess link strength with tools like Yahoo Site Explorer or SEO Moz if a website derives most traffic from search engines. If the user base is zero, keep looking for the right opportunity.

• Know your budget and stick to it.

  There will always be that one over budget site that seems worth the risk. You don’t have to spend $50,000 to be successful. There is opportunity at every price point. Many investors buy sites for $500 that earn $5,000. Most successful flips will bring in anywhere from $200 to $5,000.

Investing and Selling Website Assets

Just about any purchase can be improved and sold for more than what you paid. Some people try to optimize their sites with a ton of advertising, but there are smarter methods. You don’t want to scare visitors off and hurt user experience.

Investment strategies to try prior to selling website domains may include:

• Split-testingAdSense to determine the best colors, layout, and copy in your ads.
• Using CPC advertising in more places.
• Contacting people within your industry to solicit private advertising deals or joint promotions.
• Adding Amazon affiliate links to old blog posts.
• Knowing your high traffic pages and optimize them with more targeted advertising.
• Creating information products to periodically market to your email subscriber list.

These methods will help you make more money off existing traffic, which is a good place to start before trying to expand your reach and bring in new traffic.

Nailing the Art of Buying and Selling Websites For More Profit

Here are a few tips to help you when you think you may be ready to sell a website:

• Look good on paper.

  In the six months leading up to a sale, maximize your net monthly profit by cutting down on unnecessary expenses and spending.

• Plan a smooth transition.

  Websites are more attractive when they come with clear standard operating procedures they can follow once the purchase has been made.

• Choose a strategic buyer if possible.

  Portfolio investors may be only interested in realizing a quick profit, whereas strategic investors in a similar or competitive industry may be willing to bid higher to capture more market share of traffic and dominate the playing field.

• Stick with the site through the very end.

  Continue working on the site as your own until the deal is done. Sales may be lost at the eleventh hour if the site owner neglects the website as soon as it’s listed on the brokerage site.

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