Your Website Sales Trend Affects Your Website Sale Price
Two websites earn the exact same total revenues or profits in the trailing 12 months but sell at totally different prices. One of the primary reasons for this is they each have different sales trends.
Many website owners only consider selling their websites after they no longer have the time to actively manage them. Thus, they may have neglected the website and revenues have dropped. This website with downward sales will almost always sell for less than a website that is actively managed and has increasing sales month-to-month even if the total revenues or profits of both websites are the same.
Even if an established website has done very well financially over years, buyers ultimately give more weight to the last 12 to 24 months of revenues and profits. And buyers give the bulk of this weight to the last few months of revenues prior to the sale. Buyers are risk-averse and don’t want to acquire a website that could be on a permanent decline.
This higher real or perceived risk associated with buying a website with a downward sales trend inevitably produces a lower sale price for the seller. Note that, a small downward sales trend is not a big deal. It’s only when the drop is notable that it can make a really big difference in sale price.
A website downward sales trend gives bargaining power to buyers. A website upward sales trend gives bargaining power to sellers.
So, as a seller, don’t neglect your website. And it’s best not to sell your website after having neglected it for a long time. If you do decide to sell, you have to be ready for a lower website appraisal and sale price.
The best time to sell a website is when it’s doing well. It’s best to sell when the website sales trend is up.
Contact Us to sell your website today.
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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