Advice on selling an online business

[SlorNet]

Hey folks. I'm hoping I can get a little feedback on something here. I'm considering selling one of my online business ventures and, while I have an interested buyer, I'm not sure how to go about forming an asking price. Is there a typical formula you guys follow, such as asking for your expected net income * a certain number of years?

My site is one that will be fairly turnkey to hand over to someone else and doesn't require too much care and feeding day-to-day. I guess I'm at the "I've developed a profitable business and am ready to try something else. Now what?" stage...

Any guidance would be much appreciated.

thanks!

 

[glaxxon]

Depends on a few factors: your input cost, profits, earnings, traffic stats, domain, etc.

The most basic formula generally used is (monthly income) * (12-24) for full fledged businesses.
This is the most often used formula's for businesses being sold on flippa (btw you ought to try it out for selling your business).

 

[Jayres]

Also depends on the competitiveness and the risk factor. By the way, if it doesn't require too much care, why do you want to sell it? I had a little experience in buying and selling small (I mean very very small) business and I always asked why the seller is trying to sell. It reveals certain factors and I based my decisions on it.

 

[delta4]

Do the other way. Give buyer all info they ask and let buyer make an offer. He will request proof of revenue, how many hours of work per month are needed, stats and so on.

It really depends on what type of site you have so it´s difficult to tell with that info.

 

[btrader]

I would caution you to be realistic, what would you pay for a business similar to the one you are selling. Do you really have anything unique? What would it cost for him to just start-up what you are doing?

Fight the tendency to over-value what you have, I see it ALL the time. I always try to make sure that everyone in a transaction feels like they got a good deal. That is the key.

 

[mhdoc]

I would second the suggestion to look at sites for sale on Flippa.com.

 

[Jimbrown]

Social websites are where everybody is online.

Over half of all Internet users spend more time on social websites than doing anything else online.

The social Web has an unprecedented power to attract people's attention and influence their buying decisions - and it continues to grow by leaps and bounds.

Studies show that people who use social networking sites also tend to be very active online shoppers - and that they buy more than twice as many jewelry and fashion items online as non-social-site users do.

 

[turnhardtoeasy]

List it on flippa and call the potential buyers