Every year since 2011, IncomeDiary.com has conducted independent research on the best website brokers, working alongside industry experts and financial professionals.
Here are our top three website broker picks for 2021.
If you are considering a website broker to sell your business online, here are three brokers that we recommend you speak to first. [Last updated January 28th 2021]
# 1 DigitalExits.com – Best for sites earning $ 250K + per year
Digital Exits is our # 1 recommended website broker. They represent websites making between $ 100,000 and $ 5 million a year in profit. They are best if you have an established business over 2 years old that makes at least $ 100,000 per year.
# 2 Flippa.com – For Startups, Established Sites, Blogs, SaaS Businesses, and Ecommerce Stores
Flippa is especially good for smaller sites that make less than $ 100,000 per year in profit. although they handle more and more larger transactions. If you are a seller, they claim to have over 200,000 buyers looking to buy your website, online business, app, or domain.
Founded in 2009, Flippa has sold more than 250,000 companies sold worldwide.
One cool feature that we like is its online business valuation bot.
To find out how much your business may be worth, click HERE and type YES!
It doesn’t matter if you are a buyer or a seller, IncomeDiary recommends that you register with Flippa.
# 3 FoundersIB – Best Big Companies
Founders Investment Bank is ideal for sites that generate more than $ 5 million a year in profit. They specialize in larger deals and conduct more strategic transactions.
The history of website brokers
Companies classified as flippa.com that sell small websites ($ 10k range) have opened the market to the possibility of selling their blog or website. However, you may be sitting there with a decent business on your hands that is making over $ 5,000 per month in net profit or even making $ 1 million per year in profit and you want to sell – that’s where a website broker comes in.
If you research the multiples on the auction platforms, you will find an average of 8-12 times the monthly net multiples. On a site that makes $ 5,000 per month which is $ 40,000 to $ 60,000 at the close of the sale.
While this may be a respectable sum, you may be sitting there thinking about all the hard work you’ve done on your site and you deserve a better return on the sweat capital you’ve invested.
This is why you need to find a retail buyer, not a wholesale buyer.
A retail buyer is an investor looking for better places to invest his capital than low-yielding at the bank. They want assets that are relatively out of service and have good growth trends. You won’t find these retail buyers on many of the auction platforms because they want to deal with larger sites with more established income streams (minimum 2 years) and pay a premium for them.
That’s where a website broker comes in.
You can get $ 40,000 for your website from a wholesale buyer. Whereas with a retail buyer you can make between 2 and 5 times the annual profit, averaging around 2 to 3 times the annual net profit.
Would you prefer $ 40,000 or $ 180,000 to sell your business?
Website brokers introduce you to retail buyers.
What is a website broker?
The main function of a website broker is to help webmasters sell their web business.
Your site will be evaluated and then presented in a way that you get the highest possible price.
In this process, a series of tasks are carried out to try to maximize the price:
- Determine an appropriate titration range
- Compile an information memorandum (sales memorandum)
- Market the website
- Present the website to potential buyers
- Write and submit offers
- Assist in negotiation on behalf of the seller.
- Protect Sellers Confidentiality
- Take care of the paperwork
- Provide after-sales support.
How does it work?
The process is similar to that of a real estate agent (real estate agent). You approach a website broker looking to sell. Enter into a sales agreement with them. Typically this is an exclusive agreement that is valid for 90 days. The broker will then prepare the website information memo that will be used to show potential buyers. In this document you will find all the relevant information about the website, its finances, traffic statistics and answers to general questions.
The broker will then go out and sell your website to potential buyers. Create them with your selection process and present you with the best offers.
The buyer will typically sign a letter of intent (LOI) and request a set period for final due diligence. It is your choice as a buyer whether or not you allow this to be exclusive.
They will make a formal offer after due diligence, you will accept or reject that offer.
Then the transfer process occurs. Usually the money is transferred using an escrow service. It can be a broker’s trust account, a lawyer’s trust account, or an escrow service. We prefer our own service or escrow.com. The site is then transferred to the new owner, the seller receives their funds, and the buyer takes ownership of the website.
What is the value of your online business?
The value of your online business is relative to your individual business, the market, and what potential buyers are willing to pay. However, there are some common questions to consider, including:
- What are the sales and profits?
- How big is the business?
- What are the growth trends?
- What channels are new customers coming from?
- What is your position in the market?
- How dependent is the business on the owner?
- What systems and processes exist to manage the business?
Your business is also worth what similar businesses have been sold for, we recommend that you refer to this website evaluation report that analyzes the past transactions of Internet businesses. In the report, he analyzes $ 380 million in 714 transactions.
Which Website Broker Should You Use?
Markets – Best for smaller websites (less than $ 100,000 business value) – Smaller businesses and micro businesses are often best sold privately by the owner through forums or classified websites.
To sell your small business, see:
- Flippa: the best marketplace to buy and sell small websites
Click on the banner below to see some of their current listings.
Website Broker – Best for Midsize Businesses ($ 100,000 – $ 25 Million Business Value) – Midsize companies in the $ 100,000 to $ 25 million valuation range are best sold through brokers who help find buyers, negotiate, and structure the deal.
To sell your medium to large business (profit of $ 250,000 + per year), we recommend:
Small M&A Forms or Banks – Best for Larger Businesses (Over $ 25 Million) – Larger companies sell best through investment banks or M&A companies.
You can also check:
What is the deadline to sell an online business?
Anywhere from two weeks to 6 months. Factors influencing the timing of a sale include the seller’s access to relevant website information, time for negotiation, and the availability of financing from sellers. All of the sales we feature in the Top 30 Sales of All Time will have done this and more before realizing their big payday.
Who will buy your business?
There are many potential buyers in the e-commerce business market. Through experience, many of them fall into one of the following people:
- Corporate guy – Is someone looking to buy their first business. They are typically well-paid employees or C-level executives with available cash, IRAs, savings, or access to an SBA loan. They typically buy businesses up to $ 1 million.
- Entrepreneurs – These are online or offline entrepreneurs. They are usually looking for a business to add to their portfolio or looking for their new company. They don’t have any business size to buy. It usually depends on the buyer.
- Media companies and private equity – Companies looking to keep existing management in place and grow the business through different size holdings in the business. They typically acquire larger companies in the $ 4 million plus valuation range
How much does a website broker cost?
A website broker will generally charge 10% of the gross sales price to sell their website. If the site is smaller, some brokers charge up to 15% for the transaction.
=> Claim your free website valuation and exit strategy today
Are website broker fees charged in advance?
They are 100% commission based. They don’t make money until they sell their website, so there is a low risk of listing your site.
How do I get a higher price for my online business?
- Premium money is paid for:
- With premium domains
- Have an existing active community
- Generate recurring annual income
- Have multiple sources of income.
- That are highly systematized
- Have a solid earnings record
What if I can’t sell my website?
A website broker will request an exclusive agency period of 90 days. Good brokers have a settlement rate of around 80%. The main reasons why a site does not sell are generally related to price and the seller wants more money than the market will offer.
Related: How to create a profitable authority website
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