Selling a web-based business is often a complicated affair. Any business owner who’s attempted to sell their site can attest to this – you oft have to jump through hoops to get through the technicalities and legalities. Besides, even after the business hits the market, you still need to put effort into managing the sale processes.
Fortunately, you can get professionals to help you through the process. Website brokers – also referred to as eCommerce brokers or online business brokers – are specialists who help sell online ventures. This includes businesses like eCommerce sites, ad-supported media websites, Amazon businesses, and subscription box businesses.
The Roles of a Website Broker
Business brokers inject expertise into the sale process. They handle every process, from the preliminary valuation to finding buyers. A good broker manages your deal efficiently and quickly.
When you involve professionals in the selling process, your only responsibility is to provide performance, sales, and revenue data which your broker uses to value your business. The broker then does the heavy lifting which includes:
The value of your online business is hinged on your profits, potential growth, and revenue. A broker helps calculate the accurate market value of your site and helps you get the optimum value when the sale is made.
You should do your homework, though, and understand how brokers calculate valuations. A reliable process that incorporates your business’s unique selling points will help you get the best price for your site.
Marketing Your Business
Marketing is one of the biggest challenges that come with selling a site on your own. Sure, there exist many websites selling marketplaces, but they often offer lower quality leads and oblige you to manage the legalities and negotiations. When you collaborate with a broker, you get to capitalize on their marketing network that includes:
- Buyer Network – Good website brokers have connections with a big pool of investors. They understand the kinds of ventures the investors want to tap into and, therefore, can market directly to the most promising buyers.
- Online Listings – Brokerages run and market your listings. They craft a sleek profile for your enterprise, which helps attract buyers. Besides, good brokers have wide networks where they share the listings with prospective buyers.
Evaluating Potential Buyers
Selling an online business entails dealing with lots of window-shoppers. Some buyers are not serious, some are unwilling to make reasonable offers, and some simply can’t afford to buy your site. Your broker weeds out the unqualified leads. By evaluating buyers, your broker ensures you only focus on likely buyers and guards your business’s privacy.
Negotiations and Paperwork
You likely don’t have much experience in crafting purchase agreements or contracts or managing negotiations. When you collaborate with a broker, all these dreary details – the legal paperwork, the contracts, the agreements, and transfers – are all taken care of for you, and often they are carried out digitally. This enables you to transact with buyers from all over the globe.
The Benefits Collaborating with a Website Broker
Collaborating with a broker when selling your website makes the process easier than when you do it on your own. You get to save time, increase your chances of getting a deal, and ultimately, you increase your chances of selling your online business at a higher price. The key benefits include:
- Saves time – Selling a website is a time-consuming and tedious process. A good broker reduces the time you spend on the sale process. Your broker handles all the intricacies of the process.
- Expertise – Your broker uses their experience to advocate for you and to provide you with candid feedback.
- Faster Sales – Your broker uses their vast network and marketing experience to sell your website faster, typically within 30-90 days.
- Business Transfer – Your broker handles the oft difficult legal and technical aspects of business transfer.
- Higher Sale Prices – A competent broker helps value your business at the right price. Besides, they help you market your businesses to qualified buyers.
But just like in any commissioned-based industry, you’ll find competent brokers and ineffective ones. Some brokers just create an ad and do nothing else. A good broker should actively seek buyers, so the question is, how do find the right broker? Here are the questions you should keep in mind when hiring a broker:
- Are they experienced in my niche?
Find out if they’ve sold businesses in a related category, similar niche, or with similar income?
- What is their reputation?
Check out other people’s experiences with the broker. Also, choose a broker with a cross-section of necessary skills, including evaluation, accounting, finance, and marketing.