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I recently commented on an article about whether or not a particular business in the service industry was valued properly at a $6.2 million. What was a significant omission in the business description and the posts by other commentators was the lack of information or insight as to the reasons the business was being sold. As a buyer, I would be as much interested in the psycho-demographic reasons for the sale as in the financial data and traffic metrics.
One of the first questions, potential buyers can and should ask an online business seller is “Why are you selling this business now?” If the business is struggling or just starting and/or the seller is flipping the site for a quick profit, the answer might be obvious. (Regardless the question still should be asked!). However, if the business is demonstrating growth and positive cash flow, the answer to this question is critical to determining the appropriate price for the established website or online business.
The reasons for selling can be as varied as the reasons for buying or starting a business in the first place –
Certainly, as a past seller of online businesses, I have fully disclosed the reasons for the sale to potential buyers, perhaps to the diminishing of the final sale price. Honest disclosure is the best policy to avoid possible misunderstandings later in the business sales process and post-sale.
The psycho-demographic rationale for the business sale should be an integral part of the buyer’s business evaluation process.
Website traffic, often referred to as web analytics, represents the assembly, appraisal, analysis, reporting and measurement of all the important and vital web metrics and information a buyer will need to evaluate for valuation purposes of a web property for sale. Traffic data enables potential buyers to research and evaluate the visitor traffic flow to the seller’s website. Additionally, this enables the buyer to understand how well the seller's site is optimized for search engines and its structure. There are 2 generally accepted types of traffic data and analysis, on-site and off-site. On-site data focuses on web dependent specifications and analysis of web data on a specific site and should include conversion data.
Typically website traffic is determined by the number of visitors a particular website attracts on a periodic (ie. day-to-day, month-to-month, etc.) basis. This includes providing both the unique and returning visitor metric along with monitoring both outgoing and incoming visitors to review what specific web pages are the most popular. Unique visitor traffic indicates the level of interest in the website and the efficacy of the marketing programs to attract new visitors. Returning visitors indicates the ability of the website’s value proposition to retain the interest of its target audience. It’s also beneficial to understand which pages hold the strongest appeal (visits, time on page, bounce rate, etc.) as this will help the buyer understand the website's audience as well.
When evaluating an established website to purchase, reviewing analytics is extremely critical. Venforo, the auction marketplace for buying and selling online businesses and websites, makes it simple for prospective buyers to review the statistics of a web property. The seller is proviede the opportunity to list the past 12 months traffic in the listing detail. Additionally, certified Google Analytics data in pdf format may be uploaded to the listing on venforo by the seller and downloaded by the prospective buyer. This information together with IdealAdvisor’s Website Valuation Tool provide one of the initial steps in assessing the realistic pricing level of the web property being sold. Together they provide the necessary information to review the listing’s traffic and determine if the investment in an established online business for sale and website will be a rewarding venture.
The first step - What is your website worth?
Jon Berman
Founder of venforo.com
Experts in cognitive perception claim you have only 5 seconds to attract attention and enable your website for sale listing to stand out from the rest.
Change "MMO gaming website" to "3-Year old, money-making MMO gaming website serving 'tweens market" to attract potential buyers.
We are pleased to announce that venforo has been featured on Killerstartup.com
Here is an excerpt:
Venforo was created by serial entrepreneur Jon Berman who, 
after his own disappointing experience buying and selling online businesses, wanted to build a trusted auction marketplace for self-actualized entrepreneurs to find buyers for their web based businesses.
Says Jon:
You can read the complete article here.
3D Writing Services has teamed up with venforo in helping the entrepreneurial spirit to find love this Valentine's Day!
Matching up any two things can be quite an adventure, even if the search begins and ends with just one click! Find your business its ideal online business buyer with writing support from 3D Writing Services-- made to order: Take 50% off any auction listing writing projects during February (from 2/1 through 2/28) and expect unlimited revisions, as well!
Contact 3D Writing Services to redeem your $25 Copy Package from 3D - exclusively for venforo online business sellers.
... Write. Edit. Proofread....Where Entrepreneurs Meet Opportunity!"
Sellers of online businesses know that their historical profit/loss statements and balance sheets have to be easily understandable and available for potential buyers. Clean financial records are imperative to ensure a problem-free transfer after a successful auction and website sale. However, many online business owners forget an important aspect of the closing and asset transfer process is the vendor book. This is particularly important for ecommerce or web-based businesses as this information can be scattered in different online and offline locations.
Whether you are considering selling your online business now or not, you should develop a comprehensive notebook of your major vendors and suppliers. This resource should include a list of all vendors from freight companies, drop ship providers and office supplies, to web developers, SEM & SEO consultants, and payment processors.
This vendor book is one of the most critical assets of your business and should be laid out in a way that is representative of its value to the new owners. I recommend a hard copy but others have set up wiki files with this information online during the due diligence process.
The following information should be included for each supplier:
If you have this vendor book available during due diligence and at the time of transfer of ownership the closing process and transfer will proceed much more smoothly than without.
Jon
2/01/13
There are numerous blogs and online forums with tactics and strategies and elsewhere covering the business of buying websites and web businesses. What is missing are strategies for internet entrepreneurs to sell their online businesses. Oftentimes the preparation, and promotion is left to business brokers specializing in online business. But as the interest in buying online businesses grows and becomes more formalized the ability of business owners to take control of their own destiny by selling their businesses directly to potential buyers will also grow.
The initial important decision in selling an online business, is an understanding by the owner, regardless of level of profit, that the web business has some value. To some owners who have concentrated in daily operation of the business - getting sales orders, distribution and customer service - it is a significant OMG moment when the owner realizes that the business has value. That happened to me when a third party expressed an interest in my first e-commerce business 10+ years ago.
Most owners have not planned how to cash out of the business they have carefully developed. This is obvious by the high number established websites that just linger without testing the market for possible buyers. Normally business brokers are interested in businesses that they can find a business for fast and at price that will justify their commission. But even for new businesses with limited cashflow that demonstrate some growth and income, there may be a buyer(s) in the market for a business up and running like yours. venofor is a new marketplaces for buying and selling web businesses enables business owners to test the market for potential buyers.
I would contend that the owner's realization to include a planned exit strategy for the online business is the first step in becoming a real entrepreneur.
Have you developed a plan for selling and marketing your online business yet?
Jon
01/28/13
Why do you want to sell your online business?
I recently commented on an article about whether or not a particular business in the service industry was valued properly at a $6.2 million. What was a significant omission in the business description and the posts by other commentators was the lack of information or insight as to the reasons the business was being sold. As a buyer, I would be as much interested in the psycho-demographic reasons for the sale as in the financial data and traffic metrics.
One of the first questions, potential buyers can and should ask an online business seller is “Why are you selling this business now?” If the business is struggling or just starting and/or the seller is flipping the site for a quick profit, the answer might be obvious. (Regardless the question still should be asked!). However, if the business is demonstrating growth and positive cash flow, the answer to this question is critical to determining the appropriate price for the established website or online business.
The reasons for selling can be as varied as the reasons for buying or starting a business in the first place –
- Partnership disagreements;
- Personal or family illness;
- Owner retirement or burnout;
- Key employee departures;
- New competition;
- Another unrelated opportunity arising;
Certainly, as a past seller of online businesses, I have fully disclosed the reasons for the sale to potential buyers, perhaps to the diminishing of the final sale price. Honest disclosure is the best policy to avoid possible misunderstandings later in the business sales process and post-sale.
The psycho-demographic rationale for the business sale should be an integral part of the buyer’s business evaluation process.
Understanding and Evaluating Website Traffic
Website traffic, often referred to as web analytics, represents the assembly, appraisal, analysis, reporting and measurement of all the important and vital web metrics and information a buyer will need to evaluate for valuation purposes of a web property for sale. Traffic data enables potential buyers to research and evaluate the visitor traffic flow to the seller’s website. Additionally, this enables the buyer to understand how well the seller's site is optimized for search engines and its structure. There are 2 generally accepted types of traffic data and analysis, on-site and off-site. On-site data focuses on web dependent specifications and analysis of web data on a specific site and should include conversion data.
Typically website traffic is determined by the number of visitors a particular website attracts on a periodic (ie. day-to-day, month-to-month, etc.) basis. This includes providing both the unique and returning visitor metric along with monitoring both outgoing and incoming visitors to review what specific web pages are the most popular. Unique visitor traffic indicates the level of interest in the website and the efficacy of the marketing programs to attract new visitors. Returning visitors indicates the ability of the website’s value proposition to retain the interest of its target audience. It’s also beneficial to understand which pages hold the strongest appeal (visits, time on page, bounce rate, etc.) as this will help the buyer understand the website's audience as well.
When evaluating an established website to purchase, reviewing analytics is extremely critical. Venforo, the auction marketplace for buying and selling online businesses and websites, makes it simple for prospective buyers to review the statistics of a web property. The seller is proviede the opportunity to list the past 12 months traffic in the listing detail. Additionally, certified Google Analytics data in pdf format may be uploaded to the listing on venforo by the seller and downloaded by the prospective buyer. This information together with IdealAdvisor’s Website Valuation Tool provide one of the initial steps in assessing the realistic pricing level of the web property being sold. Together they provide the necessary information to review the listing’s traffic and determine if the investment in an established online business for sale and website will be a rewarding venture.
Are You an Online Entrepreneur Who Wants to Make Money?
The first step - What is your website worth?
The first step to becoming a true entrepreneur is to recognize that the online business, website or blog you have sweated to developed has value. But what is the level of that value to potential partners, buyers or investors?
iDealAdvisor has developed a great new tool for online entrepreneurs to help determine what their web property is worth. It uses millions of Big Data metrics and provides a comprehensive report with 
an objective estimate of the value of your web property. The report also includes tips and strategies for improvements to increase potential value. It provides valuable insight for website owners interested in listing their online businesses for sale.
The tool is quick, easy to use and currently FREE to all registered venforo users. This is a great tool when evaluating websites as a potential investment.
Request your Website Valuation Report today!!
Three reasons…
for an alternate marketplace for buying and selling online businesses and websites.
1) One Size Doesn't Fit All
Currently, direct sales of websites are dominated by one auction marketplace. Even though the market it serves and the marketplace itself may be evolving and improving, a single company still controls the majority of activity in this space.
This results in a one size fits all environment despite the disparity of market participants and types of web properties being sold. In a single open marketplace with thousands of listings, a large amount of noise is created, making it difficult for potential buyers to separate the real from the unreal, the garbage from the "diamond in the rough". Sorting out marketplace offerings will likely lead to ANOTHER online cottage industry of professionals servicing potential buyers as middleman in the market. ROI diminishes, with the potential to stifle growth in the market.
2) Additional Marketplaces = A Growing Market
To strengthen this nascent industry, there is a need to provide additional and differentiated marketplaces for buying and selling web businesses. An additional marketplace or two normally results in an expanding market. More professionally developed auction platforms result in more participants becoming aware of the opportunity of buying and selling online businesses. The pie gets bigger, not just sliced up. Imagine Microsoft without Apple and vice versa in the early years of personal computing. More market participants with a wider range of valuations, industries and business types leads to more activity and better potential outcomes from auctions.
3) For Business Brokers, Bigger is Better
Business brokers provide an important role in the buying and selling of web businesses. But like travel agents, as online platforms make it easier for buyers and sellers to interact directly, brokers will focus on larger, more complex and more lucrative deals.
Online marketplaces are becoming the meeting place for entrepreneurs. Traditionally, the more platforms offering direct exchange between buyers and sellers the better results for all market participants and the market overall.
Don't you think it is time for an alternate marketplace in this growing industry?
Jon Berman
Founder of venforo.com
You Only Get to Make One First Impression
Whether it is a job interview or an internet business listed for sale on an auction marketplace, the first words have the most impact.
Potential buyers of online businesses briefly glance at the title when browsing listings and after entering their search criteria. Experts in cognitive perception claim you have only 5 seconds to attract attention and enable your website for sale listing to stand out from the rest.
- Does the header clearly indicate what is great about your website or online business?
- Do you sell unique products or services?
- Is the business in an expanding niche market?
- Do you only work 3 hours a week on the web business?
- Do you sell unique products or services?
Change "MMO gaming website" to "3-Year old, money-making MMO gaming website serving 'tweens market" to attract potential buyers.
- Did someone proof read your listing title (and detail) for mistakes?
- Misspelled words and typing errors will distract potential buyers!
venforo is Spotlighted on KillerStartups.com
We are pleased to announce that venforo has been featured on Killerstartup.com
Here is an excerpt:
What Makes Venforo So Killer?
Venforo was created by serial entrepreneur Jon Berman who, after his own disappointing experience buying and selling online businesses, wanted to build a trusted auction marketplace for self-actualized entrepreneurs to find buyers for their web based businesses.
Says Jon:
" We want all participants in our marketplace to have positive outcomes before, during and after the sale. I pride myself in trying to provide a personal touch for all venforo market participants."
You can read the complete article here.
Exclusive copy support for venforo website for sale listings
3D Writing Services has teamed up with venforo in helping the entrepreneurial spirit to find love this Valentine's Day!
Matching up any two things can be quite an adventure, even if the search begins and ends with just one click! Find your business its ideal online business buyer with writing support from 3D Writing Services-- made to order: Take 50% off any auction listing writing projects during February (from 2/1 through 2/28) and expect unlimited revisions, as well!
Contact 3D Writing Services to redeem your $25 Copy Package from 3D - exclusively for venforo online business sellers.
... Write. Edit. Proofread....Where Entrepreneurs Meet Opportunity!"
Getting ready to sell your web-based business? Here is a simple but essential tip...
Sellers of online businesses know that their historical profit/loss statements and balance sheets have to be easily understandable and available for potential buyers. Clean financial records are imperative to ensure a problem-free transfer after a successful auction and website sale. However, many online business owners forget an important aspect of the closing and asset transfer process is the vendor book. This is particularly important for ecommerce or web-based businesses as this information can be scattered in different online and offline locations.
Whether you are considering selling your online business now or not, you should develop a comprehensive notebook of your major vendors and suppliers. This resource should include a list of all vendors from freight companies, drop ship providers and office supplies, to web developers, SEM & SEO consultants, and payment processors.
This vendor book is one of the most critical assets of your business and should be laid out in a way that is representative of its value to the new owners. I recommend a hard copy but others have set up wiki files with this information online during the due diligence process.
The following information should be included for each supplier:
- Complete contact information including, key contact names, address, email, website and phone number
- Product or service categories and items supplied
- Pricing program (Standard discount)
- Order processing procedures ( online? offline?)
- Credit terms (early payment discount? net 30?)
- Any special agreements in place (volume discounts, dealer contract, freight minimums, etc.)
If you have this vendor book available during due diligence and at the time of transfer of ownership the closing process and transfer will proceed much more smoothly than without.
Jon
2/01/13
Do you have an exit plan for selling your online business?
There are numerous blogs and online forums with tactics and strategies and elsewhere covering the business of buying websites and web businesses. What is missing are strategies for internet entrepreneurs to sell their online businesses. Oftentimes the preparation, and promotion is left to business brokers specializing in online business. But as the interest in buying online businesses grows and becomes more formalized the ability of business owners to take control of their own destiny by selling their businesses directly to potential buyers will also grow.
The initial important decision in selling an online business, is an understanding by the owner, regardless of level of profit, that the web business has some value. To some owners who have concentrated in daily operation of the business - getting sales orders, distribution and customer service - it is a significant OMG moment when the owner realizes that the business has value. That happened to me when a third party expressed an interest in my first e-commerce business 10+ years ago.
Most owners have not planned how to cash out of the business they have carefully developed. This is obvious by the high number established websites that just linger without testing the market for possible buyers. Normally business brokers are interested in businesses that they can find a business for fast and at price that will justify their commission. But even for new businesses with limited cashflow that demonstrate some growth and income, there may be a buyer(s) in the market for a business up and running like yours. venofor is a new marketplaces for buying and selling web businesses enables business owners to test the market for potential buyers.
I would contend that the owner's realization to include a planned exit strategy for the online business is the first step in becoming a real entrepreneur.
Have you developed a plan for selling and marketing your online business yet?
Jon
01/28/13