The Art of the Website Deal
Website sellers always ask me ‘How much can I get for my website?’ The Sale Price depends on the science and art of the deal – numbers and human emotion.
Two websites can have the exact same numbers (revenues, profits, age, domain name value, traffic, costs, etc.) but sell for two completely different prices. Why? Because the people and human emotion involved are inevitably different. People like to think of themselves as rational and logical beings when it comes to business. But the fact is that human emotion always trumps logic in business transactions.
The numbers provide a framework in which both parties negotiate the deal. But ultimately, human emotion determines the final price.
In a website sale, the buyer or seller receives what he can successfully negotiate, not what he deserves. How desperate is the buyer or seller? How emotionally attached is the seller? Does the seller need cash fast? These are some of the psychological questions that determine the final price.
Emotion is more important than Intellect.
As website brokers, we study the hard numbers but we also pay close attention to the emotions driving the deal in order to negotiate the best deal for our clients. Remember that the website’s numbers do not change but, believe me, the human emotions change as the negotiations progress. Thus, these emotions must be monitored carefully.
When a deal satisfies the emotional urges of the buyer and seller, that deal will close at the right price and terms for the buyer and seller. Closing deals is what we do. Let us do it for your website transaction too.
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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