Why A Website Broker Can Sell Your Blog For More Money

So you are toying up with the idea of selling your website?

Sites that flippa.com have educated the market on the possibility of selling your website. However it can be hard to find the right buyer willing to pay the right price for your website.

There have been some notable public sales of websites like the Huffington Post and Bankaholic that have given you confidence that you can sell your website.

However have you considered using a website broker? There may be some hidden benefits that you may not have thought of by choosing this option.

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What is a website broker?

Full disclosure here: I am a website broker, so I can answer these questions in full. The primary function of a website broker is to help webmasters sell their web business. Your site will get evaluated and then presented in a way to gain the highest possible price to prospective buyers. The broker then receives a commission if he is successful in selling your website and will help with the handover of assets. In that process there are a number of tasks performed to try and maximise price:

  • Determine an appropriate valuation range
  • Compile an information memorandum (sales memorandum)
  • Market the website
  • Present the website to potential buyers
  • Draft and present offers
  • Assist in negotiation on behalf of the seller
  • Protect sellers’ confidentiality
  • Look after paperwork
  • Provide after-sales support

How does it work?

The process is similar to that of a realtor (realtor/real estate agent). You approach a website broker looking to sell. You enter into a sales agreement with them. This is normally an exclusive agreement that is valid for 90 days. The broker will then prepare the an extensive document about the website to be used to show potential buyers. In this document is all the relevant information about the website, its financials, traffic stats and answers to general questions.

The broker will then go out and sell your website to potential buyers. Screen them with their screening process and present you the best offers.

The buyer will normally sign a letter of intent (LOI) and ask for a set period for final due diligence. It is your choice as the buyer as to whether you allow this to be exclusive or not

They will make a formal offer after due diligence, you will either accept or decline that offer.

Then the transfer process happens. Money is normally transferred using an escrow service. That can either be the brokers trust account, a lawyers 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 broker then gets paid.

3 Reasons:

Here are the top three reasons a website broker can get you more money.

  1. Network of Buyers – The more offers you get for your website, the more options you have of selling and the more competition that is created to drive the price up higher so you can get top dollar for your internet business.
  2. Incentive To Perform – Because website brokers work on a commission only basis, the more money you make, the more money they make.
  3. Specialization – A website broker is in the game of selling websites. Most webmasters aren’t. The day to day grind can give them a better insight into the market, your website and have special knowledge that you wouldn’t have access to.

Why would you hire a website broker?

9 Reasons why you would hire a website broker:

  1. Website brokers are good at selling websites
  2. You don’t get distracted from running your website
  3. Keeps the sale confidential
  4. Access to the brokers database of potential buyers and investors
  5. Most websites get sold using a broker
  6. Most webmasters don’t know how to find buyers
  7. Most webmasters don’t know how to prepare a website for sale
  8. Broker can control negotiations
  9. Broker can assist the seller through the process

How Long Does It Take?

Anywhere from one week to 6 months. Factors that influence timing of sales include getting access to the relevant website information from the seller, negotiation time and sellers getting finance available.

What’s The cost?

A website broker will generally charge 10% of the gross sale price for websites valued over $25,000 and 15% for websites under $25,000.

Are fees charged up front?

No. They are 100% commission based. They do not make any money until they sell your website.

What are the best sites for a website broker?

The best sites are established sites that are making solid monthly earnings. A good range is between $20,000 and $2,000,000 in value.

They also have the following characteristics:

  • Established websites, not turnkey sites.
  • Solid history of earnings
  • Sites with credible traffic in their market. Buyers prefer sites with multiple traffic streams.
  • Premium money is paid for:
  • With premium domains
  • Have an existing active community
  • Make recurring yearly income
  • Have multiple income streams
  • That are highly systemized
  • Have strong earnings history

What if I can’t sell my website?

Normally they will ask for a 90-day agency period. Good brokers have a clearance rate of about 80%. Main reasons for a site not selling is generally price related and the seller wanting more money than the market will offer them.

Jock Purtle is a website broker for brokercorp.com. If you are looking to sell your website he is offering a free valuation to find out what your website is worth.


20 thoughts on “Why A Website Broker Can Sell Your Blog For More Money”

  1. Could be a good idea for people who have never sold websites before, everyone now and then needs someone to take them by the hand and help them through uncertain territory.

    As you say, it can leave the site owner free to focus on the website free from questions and distractions.
    Very interesting post.

  2. Yes I too agree that sites like Flippa can estimate our site’s value than any other guys. So it’s better of using Flippa for selling blogs.

  3. sapna says:

    HI John

    Not yet thought of selling but glad to know that there are brokers for the same.

    Thanks for sharing this.

    Sapna

  4. Eric says:

    This is a nice read, I don’t think I am in the market for a website broker at the moment. Would be interested to know are the niche website brokers kind of like a website broker that I would go that could sell a sports site and a different broker for a different? Or do most website brokers take and work with anything across the board?

    Thanks for sharing!

    Eric

  5. Kang Hee

    says:

    Do you have list of sites that you currently represent?

  6. Sinnary Sam says:

    That is so interesting, I’ve never even thought of that.

  7. Great post Jock! I have many websites, so I will keep this post saved as I may need your help down the road. I think using a broker is an excellent idea for those of us who know how get websites in to profit. Takes all the hassle away of dealing with flippa etc too!

  8. Erwin says:

    Hi everyone,

    nice tips for website owners who want to sell their sites.

    But I’m more interested in how to get more visitors to my websites and if my site will get popular maybe I will need a website broker.

    Thank you.

    Free Dvd http://howtobuildlistfast.info

  9. Edgar says:

    Remember it has to be establish website not a turnkey only making a few bucks. I think the problem with flippa is that everyone is asking for to much, like you said above wanting more money than what the market offers.

  10. I guess you have to do what you have to do.

    Personally I think George Lucas was wrong when he gave away Star Wars to DISNEY who got a loan to buy em for only $4B.

    Unless you need a surgery I wouldn’t sell my blog if it was earning cash. Even then you could probably get the surgery stiff the doctor and file bk lol just playing seriously.

  11. Vikas says:

    Website selling.

    The information will be very useful for the people who are thinking of selling their website.

  12. Syed Danial says:

    I want to sale my http://www.internetdreamz.com website. Where i can find a broker i don’t have any experience and don’t know much about flippa?

  13. Philippa is a well known website selling companies do they find more potential customers, and they have a good security system that allows the crooks can not steal your webpage acted upon until everything is paid.

  14. rahul says:

    Great post man! I have many websites, so I will keep this post saved as I may need your help down the road.

  15. Tim Miller says:

    I think the biggest obstacle that webmasters will face if they are trying to sell their websites without the help from brokers is: no one mediated the transfer of payment, so this will make it harder for the owners of website to trust the buyers or the other way around.

  16. faisal says:

    Many ways to do business online. Brokering is quite popular in many niches.

  17. Jon Mcdonald says:

    Website Flipping can be very profitable, a broker can bring you piece of mind much like a real estate agent when selling a home. Great post. Keep it up!

  18. Thank you for sharing this informative post with us.

  19. I have recently started my website. It is around 2 months old. I have started earning around 3$ per day. I spent around $1.5 Per day in its marketing. Can I sell this website? What should be the right price?

  20. Hello friends, nice post and nice urging commented at this place, I am in fact enjoying by these.

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