Many business enthusiasts and tech geeks are getting involved in forming their own eCommerce business where they can sell products or services and make a profit. Perhaps out of passion, you have developed a website with the idea of starting a business from home. After a while, you may think that passing your baby into a new hand may be financing a new project.
The first course of action will be to find a good market to sell your website. However, the next step can be a challenging part as you will have to assess your own business. It is an essential aspect of evaluating your business website and finding out how much your website is worth or what it can be sold for.
This article will guide you to have a clear understanding of how you can find out the value of your website and how you can sell your website for a higher value.
How should the SELLER evaluate the website?
The website only creates value if it has the potential to provide a good return on investment. The buyer will only invest in those websites that can make sales and offer better income.
You as a seller and the customer as a buyer will obviously have a different mindset about the website. The buyer who will invest in your website can expect a quick payback and will therefore decide the amount based on the risk.
For example, a seller evaluated the website such that they spent $10,000 on website development, $5,000 for the domain, and another $40,000 for traffic generation, ads, etc. therefore, it should be worth $55,000. This form of evaluation is absolutely wrong!
Each and every aspect is taken into account when evaluating a website, such as the cost of website development and maintenance, domain fees, traffic, monthly sales and profits, amount spent on promotion and advertisements, etc. Therefore, the profit is something that is evaluated, not the assets.
How will a BUYER evaluate the website?
Most buyers are willing to pay more than what the business brings in, but it is determined by the amount of risk involved. The lower the risk, the higher the amount the buyer will spend on a website.
Factors that intervene in the evaluation of a website:
• Consistency in earnings
• Business growth
• Automated systems
• Income streams
• Traffic and ranking
• USP
This is how you can maximize the value of your website:
1. Estimate and paperwork: It is necessary to have all your assets, earnings and expenses calculated for a good reason, of course! At any time during the estimation, you can forget some of the figures to add accurately.
2. Simplify your routines and other processes: It is necessary to ensure that all processes work excellently. It will be a great idea to reduce unnecessary expenses.
3. Try to differentiate what you are offering: You will have to find a way to differentiate your business from other competitors. Try to find out what makes you different and unique from others and show it to your buyers.
4. Organize your business: Your business should not be left behind in any terms, so keep things organized so that it attracts more buyers. It is a great idea to make your business more organized while solving any kind of problem.
