The Top 10 Reasons to Sell Your Website

Deciding to sell a website can be a life-changing decision. You've put in years of hard work, lost many nights of sleep and built your online empire into what it is today. The Flippa Marketplace makes it easy to sell your website, but the question on most people's mind is: when is a good time to sell? As a marketing specialist at Flippa, I've encountered hundreds of different reasons for why people decide to sell. Through this experience I've identified the top ten reasons to sell a website.

1. Need the Money

In a pinch for cash? Whether you have a wedding to pay for, credit card debt, medical bills, a new house, a new car, or a new business, there are some things in life that require a large amount of capital in a short amount of time. Selling your online business offers a quick way generate the income you need to stay afloat.

2. Maximum Exit Value

If the expected sale value today is more than the expected sale value in the near future, it may be time to seek the optimal exit. Every seller dreams of selling at peak performance, because this is often where we see the highest multiples being paid by buyers.

3. Seeking a Change in Lifestyle

Have a new job and can't keep up with the maintenance of your online business? Want to spend more time with your family? Travel the world? Retire? These are all great reasons to sell your website. Making a lifestyle change will allow you to refocus your priorities so that you can spend more time pursuing your interests.

4. Taken the Business as Far as Your Skills Allow**

Many web entrepreneurs succeed due to their mastery of specific skills including web development, customer acquisition, social media, SEO, etc. However, individuals who are highly dependent on these skills to succeed may ultimately find it difficult to achieve sustainable growth. If you feel limited by your abilities, you may consider exiting at a premium to a buyer who has the necessary resources and skills to pick up where you leave off.

5. Lost Motivation or Interest

For some, the best part about being an entrepreneur is the startup phase. Bootstrapping a business and seeing it grow can be one of the most rewarding aspects of entrepreneurship. It is common for "start-up enthusiasts" to lose motivation and interest over time, as they daydream about the next big thing. If you find yourself in this camp, you might consider selling so that you can fund your next budding project and get back to the startup grind.

6. Don't Have Time

The fast paced lifestyle of an entrepreneur is not for everyone. Demanding schedules and always-changing priorities can create a chaotic environment where there is never a free minute. If you do not have time to manage your online business effectively, selling is usually a better solution than letting the business suffer a slow death.

7. Business Is Tanking & You Don't Know How to Stop the Decline

Because sometimes we just get in way over our heads and can't handle what's thrown at us. If you're the captain of a sinking business, you might feel compelled to stay onboard until the last dollar is spent. However, a better alternative is usually to sell the business while it still has some value left.

8. Feuding with a Business Partner **

Business feuds can be a cancer to productivity. Sometimes they become so bad that the successful operation of the business is no longer possible. When it hits that point, dragging out a feud will accomplish nothing but a reduction in exit value. Though it's not easy, it's usually a good idea to sell the website amicably and part ways.

9. Website No Longer Aligns with Your Moral Compass

Websites often evolve in ways we never imagined, and sometimes the way a website is used can vary dramatically from the original mission and intent of the owner. An example would be an online forum meant to facilitate anonymous discussions which becomes a breeding ground for explicit adult content. If you no longer align well with your own business, it may be time to step away.

10. Health

Running an online business can be incredibly stressful and take a huge toll on the human body. Many entrepreneurs are so dedicated to their business that they forget to step back and breathe. If it's a matter of life or death, or overall wellbeing, it's probably time to consider an exit.

You've Decided to Sell Your Website, Now What?

Once you've made the decision to sell, the fist thing you need to determine is your target exit price (i.e. the price at which you are aiming to sell). Ask yourself: is your website currently in a position to sell at that price? It is possible your website is positioned for a rapid exit, but it is also possible that the current valuation is well below the target price, in which case something will have to be done to raise the valuation, or the target price will need to be reduced.

Website Valuation

As a general rule of thumb, most websites sell for a multiple of annual net income ranging from 1x to 3x, though this can vary wildly depending on the particular site being sold. Additional considerations include risk, sustainability, and growth opportunities. For example, the more sustainable and the more growth opportunities your site has, the higher the valuation it will command. If you are unsure how to perform a website valuation, you can use a website valuation guide to help determine how much your website is worth.

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by Chris Holle via SitePoint