How to Sell Your Website When Sales Are Dropping
Ideally, you only want to sell a website when sales are increasing. If you can avoid it, do not sell your website when your sales numbers are declining. But if you have to, here’s what to do.
Many website owners launch websites and later either lose passion for the business, neglect the business due to a focus on other projects, or simply need cash. So they decide to sell the website. In many of these instances, the website sales are decreasing month-to-month.
Of course, small sales drops are no big deal but big signinficant sales drops each month could be a problem when you do decide to sell.
If you find yourself in this situation, you can still sell your website for a good price. But you must understand that buyers are scared to death of a website in decline. They fear that they may be buying a website that’s headed down to $0 in sales. They will need a good reason why the sales are dropping.
The common response from sellers “I just didn’t have the time to focus on the website” may be true, but buyers hear this everyday and are very skeptical.
In these situations, as website brokers for the seller, our main task is to prove what the seller is claiming is the reason for the declining sales. For example, as a seller, you need numbers and data to prove that when you performed 10 hours of Administration or invested $10 dollars in Promotion, you got a higher level of sales. But now that you only perform 1 hour of Administration or invest $1 dollar in Promotion, you receive less Sales.
Ultimately, you must also be realistic about your Selling Price. A business with declining sales will almost always sell for less than a business with increasing sales. Buyers expect to get a discount because of the higher risk they’re taking buying the business with declining sales.
So again, ideally, only sell your website when sales are on the rise. But if you have to sell a website with declining sales, prepare yourself before you offer it to the marketplace.
Let us sell your website for you regardless of whether you have increasing or decreasing sales numbers.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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