Last Updated on August 27, 2019 by Rajeev Bagra
I find people behind buy/sell websites or brokers seeking primarily one thing: How much money is the website making? Often, while it is a website that is put for sale, no clear distinction is sought between the whole business and the website. Website is only a part of a business, and when revenue is generated, there can be so many variables.
For instance, suppose I attach a GoDaddy affiliate link (through) and earn 500$ per month for the 12 months. My earning from the website is now 6000$ yearly. However, it is because of the clients that I was referring to one-on-one that resulted in the sale. Also included was the fees that I decided not to charge from clients because I was compensated well by GoDaddy. As almost all the sales were the results of offline marketing endeavors plus the development efforts, it will be foolish to relate this income to the website. Still, my website records justify making 6000$ yearly and so may command 12000$ to 18000$, if 2x – 3x the valuation.
Plus, after selling this website, I will attach the same GoDaddy affiliate link on my another website and will continue to earn the same before. But take the case of a buyer who had bought this website from me. There is no dearth of affiliate links (not talking about GoDaddy affiliate program which appears restrictive), and what was the need for him or her to pay 12000$ to 18000$?
What needs to be figured out is if the GoDaddy affiliate link was approved after submitting the website under reference. It is true that GoDaddy affiliate program is quite choosy when it comes to approving publishers through cj.com. However, once a website is approved through cj.com, there is a possibility to put affiliate links on any of your network websites (clients included), just like AdSense. The said price of 12000$ to 18000$ seems justified if along with my website, I need to transfer my affiliate account to the buyer. So, here comes the value of good content on a website that gets you approved for a set of affiliate programs based on the merit of the content.
While the system of equating the revenue generated from a website with yearly revenue of the business may be perfect for an e-store that sells digital products like an in-house software whose technology will be sold along with the website, the same does not make sense for other kinds of businesses like an online publishing website with affiliate links. These website brokers should have a system in place to segregate such distinctions right when the listing is made by the seller. What is currently happening is when you try to put your website for sale, your website is outrightly rejected if it does not match their minimum monthly revenue target irrespective of the content quality and the resultant domain ranking, page ranking.
So, the way forward should be in addition to maintain the quality of content, revenue generation should be a priority. When it comes to selling a website while having a number of websites, proper record should be kept of how much revenue generated from each website as buyers are particularly savvy about this as evident from the below concern raised by a prospect.
Opportunity for content-specific marketplace
I believe there is an opportunity to come out with a buy/sell website marketplace for blogging and content-based platforms exclusively wherein moderators check the quality of the content (original or not, the proportion of original content versus user-generated/guest post, and such parameters). The buyer here may decide to come out with a fresh website that mentions their core services and includes the articles that were acquired as a result of buying under a blog section. In my search for such services, I came across MotionInvest that specializes in buy/sell of content websites exclusively.
You can complete a sale as fast as 3 to 5 days. After submitting your site, MotionInvest will perform due diligence and ask you to submit earning proof of last 12 months and access to Google Analytics data. Next, if the site passes due diligence, you will be quoted a price, and subject to signing the agreement and meeting formalities of transferring the domain name, backup of the site, you will receive the payment either by PayPal or wire transfer.
For a buyer, by opting for an additional subscription, they will guide how to operate a content-based website making the most of affiliate marketing, AdSense, and other such programs.
Unlike most brokers (FE International, Empire Flippers) that demand at least 500$ per month income in order to consider your sale proposal or Flippa that is too crowded to get your website noticed, MotionInvest fills a gap for quality small bloggers, content websites.