Think of a website broker as a real estate agent. If you wanted to sell your house, you would approach a realtor. The same goes for your site – you go out looking for a broker to help you sell it. Traditional businesses have their brokers too, who have broader business connections and are known to get better bargains when selling businesses.
What do Website Brokers do?
As we’ve just noted, brokers match buyers with sellers. But there’s a lot more to this process, because they are intent on getting the most qualified buyer. That’s to say that your site could receive a variety of offers and it would be up to the broker to see to it that you get the most money out of the deal. Think of it this way: the more you benefit, the more they benefit.
There are a number of things that a web site broker does to be able to sell your website at the best possible price. Here’s an overview:
- Website Evaluation
A broker can do an evaluation of your website to determine how much it’s worth. Your site’s valuation depends on a number of factors, most important being profits. Others are monthly traffic, page views, revenue streams and even the age of your domain.
- Preparation of Documents
The broker prepares an information/sales memorandum, which is a document detailing all the facts of your website. The details will include a general overview of your website, the products and services you offer, traffic, financials (revenue, profit, loss, asking price) and how you operate your website.
The website broker will then market your website and present the sales memorandum to potential buyers. Remember that they have access to a large number of buyers who already share a high degree of interest.
Negotiations – negotiations are carried out between the broker and interested buyers. With good experience he should get you a good deal from all the offers on the table.
Once the sale has been agreed, the website broker helps facilitate the paperwork and handover process to the new buyer. For safe transactions, money is usually transferred using an escrow service. One of the most trusted escrow services is escrow.com.
After all is said and done, you can look forward to after sales support from your broker.
How long would a Broker take to Sell my Site?
The process of selling your website can be short, or lengthy; it depends entirely on the negotiations and the process of handing over. It may take a week. Or six months. The timing is influenced by such factors as the amount of information available to the seller, how far they’re willing to go in negotiating, whether the finance is available, etc.
How much do they Charge?
Website brokers generally ask for 10% of the sale price. This applies mostly for sites that are sold for over $25,000, while sites that sell for less than that will attract a fee of 15%. The good news for you as a seller is that these fees are purely commission based. You do not pay any upfront fees. The broker only gets paid when you get paid.
Should I hire a Website Broker?
Considering the benefits that come with hiring a website broker, it would probably save you a great deal of money and time to hire one. Brokers are especially worth having if your site is worth between $20,000 and $2m. Here’s why:
- Website brokers are specialists at selling websites
- They have access to a large network of buyers
- They keep the sale confidential
- You may not know how to find buyers, or have the time
- Negotiations with competing buyers are done on your behalf
- You’ll not be distracted from running your website
Finally, you should be aware that your website needs to be at its optimal best if it’s going to sell quickly. If you have a strong earnings history, multiple revenue streams and a vibrant community, buyers will compete to acquire it. A premium domain is also a big plus. Before selling your site, a broker will sign a sales agreement with you that will be valid for 90 days. If your website is not sold within that period, then it could be that you are holding out for more money, while the buyers aren’t willing to meet the valuation.