How you can Promote Your Weblog For Most Income
Disclosure: This is a guest post from Investors Club, a leading broker for people looking to sell their websites.
Once you've made a decision to sell, make sure you are getting a good ROI on all of your hard work. Whether you've built the website from scratch or flipping your latest investment around, it's easy to get stuck with low-ball deals if you haven't done your homework.
Before we dive into maximizing your profits and getting your website at the right price, let's take a quick look at the possible reasons to sell and when is the right time to cash out.
Why and how people sell
When it comes to selling a business, in this case a blog, every salesperson has different motivations for the decision. By and large, however, they fall into two categories: personally and Professional.
Personal reasons can be anything from wanting to have the cash to finance a home purchase, tuition, retirement, divorce, or medical expenses, to simply not having the time to devote to it.
Professionally, you may want to raise funds for a new acquisition, reduce the risk of exposure to an asset, or focus on other projects. This is a great way to raise money without traditional corporate finance.
Regardless of your motivations, the outcome you want is the same – make as much money as you can from the sale.
The decision when to finally pull the trigger and list your company is a personal decision. However, good indicators are whether you've lost interest in the topic or are receiving unsolicited offers to buy.
While these offers are almost always a fraction of the website's real value, they can indicate demand for websites in your niche. And if you want to sell, you have two options: go private or use a broker.
Avoiding additional fees is one way to maximize your bottom line and is often the main motivator for private sales. While avoiding brokerage fees may seem like an attractive option, selling privately can often be more difficult than it's worth – especially since it usually results in a lower selling price.
It's up to you to find your buyer. So, unless you have a large network and are not good at public relations (or have the time to devote to it), you are limiting your potential buyer pool. This puts you in a weaker negotiating position, as it is harder to back off from one deal when you know no one else is waiting.
The private buyers you attract are usually not for business and want to take advantage of the fact that you are not paying commission fees to a broker to get a lower price. If you are willing to take that risk, a private sale might be the option for you.
However, if this is your first time selling, it is recommended that you use a broker so that you know what to expect from the process.
Selling through a broker takes the pressure off selling a website. They have a service done for you, access to a huge pool of buyers, and do all of the marketing for your business so you can focus on the more important things (like figuring out how you're going to be spending your higher profits!).
As mentioned earlier, the brokerage fees for commission fees can be off-putting. However, these are usually offset by the higher selling prices that you can get through a broker. We only charge 5% fees at Investors Club, which makes us the lowest in the industry. Our competitive pricing means more money in your pocket, and with a total pool of more than $ 300 million in investable liquidity, you can choose your buyers.
Once you've decided to sell, understanding how website reviews work is important. If you already have a basic understanding of this, you are in the best position to get a higher price and maximize your profits.
How Site Valuations works
Even if you chose to sell privately, it is still a good idea to have an independent party review your website. Personal prejudice can lead to the real value of your blog being overestimated, leaving you with an unrealistic selling price and pool of buyers that is a bit of a ghost town.
Selling through a broker means your reviews will be taken into account. However, understanding the calculation is still extremely beneficial to you as a seller.
The evaluation of the websites is based on their EBITDA (earnings before interest, taxes, depreciation and amortization) and the monthly multiple determined by the broker, which we will discuss in a moment.
Price windows are usually set after 3, 6, or 12 months, although a 12 month window is the best benchmark – especially if the website has seasonal variations in sales / traffic.
The lower the price window, the less confident buyers are. Hence, a 3 month window is extremely rare unless the business is very new. A 6 month window is really the minimum that should be considered as it reflects a more realistic view of the company and takes into account factors like Google updates.
Average monthly net profit x monthly multiple = location evaluation
Multiples for affiliate sites
The following factors affect the rating of blogs promoting affiliate offers:
- Diversity of sales – – The more sources of income you have, the better you can minimize risks because you don't have to rely on just one source of income. Most buyers look for low-risk opportunities, so diversification is important.
- Site Age – Older locations are considered to be more resilient. Age means the website could easily withstand Google updates (the bane of being a website owner).
- Traffic diversity – Evenly distributed traffic reduces the risk. So if one of your pages is unlucky enough to compromise Google's dreaded deindexing, the entire website won't be affected too much. High source organic traffic indicates powerful search engine optimization, while any traffic from social channels is a bonus. Traffic from mostly paid ads is a red flag for buyers as, while it indicates that you are good at PPC, it suggests that users cannot find the site organically.
- Net profit trends – – High margins are good, the proof that they are growing month over month is even better!
- Brand Reputation – Returning visitors are a sign of a strong brand. So if you have repeat traffic and visitors are enjoying your content, this is a good sign of your pending review.
- Assets included – Do you have an active email list that can help you increase net income? If so, is it included in the sale? Same goes for affiliate accounts, any social media accounts that promote traffic and content, both published and unpublished. Any assets that correlate with the website generating revenue / traffic should be included in the sale for better valuation.
Now that we've got into calculating the ratings, here's the part you've all been waiting for …
How to Increase Your Rating (and Maximize Your Profits)
To maximize profits, your website needs to have a high rating. However, anyone can value their website at $ 100,000. The key is being able to prove your worth.
We have already covered the factors that affect the multiple (i.e. a substantial part of the evaluation formula) 6 Actionable Steps to Improving Your Website Sellability.
- CRO (Conversion Rate Optimization)
While it is important to attract new traffic to a site, it is equally important to get more out of the traffic you already have. A high conversion rate indicates that your website is well designed, efficiently formatted, and attractive to your target audience.
Because of this, CRO can go a long way in making your website more attractive to buyers – especially blogs where your money is made through actions by readers.
Understanding your goals, whether this will result in users downloading an e-book, signing up for your newsletter, or following your website is key to getting started. After all, there is no way you can optimize your website for a goal that you do not know.
The main areas to focus on include the home page, the money pages, and the informational articles themselves. Whatever your goal, make it easy for your audience to take the action they want. Adding features like login buttons, free resources, and CTAs to articles can really help. A / B (or split testing) is an effective way to determine which of your optimizations are producing the best results.
- Show advertisements
The more monetization methods your website has, the more attractive it is to potential buyers. If you rely only on one income – say Amazon Associates – you are vulnerable to policy updates either banning you from the service or lowering your commissions. If the worst should happen, all you are left with is one high traffic website that is no money.
In other words, a website owner's worst nightmare! Adding display ads helps diversify revenue streams and increase EBITDA. As we have already established, the higher your net profit, the more control your website can have.
- Change and test partner offers
Unless you have signed an exclusivity agreement with your partner partners, you cannot only carry out offers from a single source. Look out for better deals or negotiate your contracts with partners.
Test new offers and monitor the results. If they are successful, keep them running, and if they are a flop, cut them and try another. Keep adding new offers as the website grows and maximize your revenue streams.
- Invest in SEO
You can't buy SEO (although you pay SEO companies to do it). So we mean investing some time in your SEO strategy.
As a profitable blog, there is a very good chance that you already have a working SEO strategy, but spend some time reviewing it regularly. Keep your keyword research up to date to make sure you are always creating content that offers value and to make sure your keywords are evenly distributed across your website.
SEO is critical to maximizing profits because while some buyers are looking for websites with fixer-upper, most want something that is ready and already getting results. On-site SEO focuses on optimizing websites for search engines AND users.
Best practices include optimizing content (i.e. including keywords as mentioned above), adding internal and external links to relevant content, nailing SEO-friendly URLs (read: not long and complicated!), And making sure that your title and description tags are up to date.
Off-site SEO is just as important as establishing domain authority, relevance, and trustworthiness for users and search engines. Building backlinks is one of the most important factors as search engines use them as indicators of content quality.
Increasing both the frequency and quality of your backlinks can improve your website rating, as can other external SEO practices like guest blogging and social media marketing.
- Optimize for devices
It's surprising how many websites are not yet optimized for device. Up to 70% of the traffic comes from mobile devices. If your website isn't optimized, you lose. Do yourself, your audience, and potential buyers a favor by making sure the website looks and works just as well on a mobile device as it does on a computer.
- Diversify your traffic sources
If you're getting 98% of your traffic from organic search (or even over 60%) you have to be an SEO assistant, but more importantly, you are putting yourself at risk.
If you rely heavily on organic search results, it means most of your traffic will be lost if you get a Google penalty. Just like with a diversified method of monetization, having multiple sources of traffic makes your website more secure and therefore more attractive to buyers.
What do you do with the profits?
It is a good idea to have a plan for making profits before selling. These tips could run you into a life changing amount of money and if you don't have a plan your chance for further growth could be missed.
If you are selling for any of the personal reasons discussed earlier, it is likely that you already have the money earmarked for major spending. However, if the sale is only for professional reasons, have you thought about building a portfolio of websites and using your profits to buy an existing website or two?
With the skills you acquired growing your first business, you can acquire, expand, and flip over existing websites on a flush and iterate cycle. Every website you switch can mean more money in the bank, especially if you only pay 5% fees.
Bonus tips for a quick sale
- Identify growth potential – Investors want something that can be scaled. Compiling a list of potential growth paths can make your website more attractive to buyers. High overheads are also undesirable and have a negative impact on profits. So if you can reduce them without sacrificing the quality of your website, it can be of great help as well.
- Don't overestimate your company – Remove the emotional attachment to your company when it comes to the evaluation phase. Put yourself in a buyer's shoes and see why they want to buy your business. Make your worth clear, but don't overestimate it. With the Investors Club's free valuation tool, you can determine without obligation how much your website is worth today.
- Negotiate the right way – Getting to an endpoint that you and your buyer are happy with takes a little give and take, and building a good relationship is important. Before entering any discussions, take some time to understand your buyer's motivations:
- Why do they buy
- What do you want to achieve?
- What is the pain they are experiencing and how does your offering resolve it?
- Do they have a certain lifestyle focus (i.e. minimal management time)?
- How high is your risk?
- What are your future goals? Do you want to aggressively scale and flip the website in 6 months or are you looking for long-term, steady gains?
Find out what's non-negotiable and work out the lowest price you're ready for (taking into account the point above). Know your data and be ready to defend your numbers. If you have outside contracts like freelancers etc, check to see if they move on with the new owner.
If you sell your website as a passive income opportunity that requires 4 hours of work per month but doesn't transfer all of the resources to make it happen, you have a very unhappy buyer!
If you're looking for an inexpensive, hassle-free method of selling, then this is it Investor Club offers a complete service to you at the lowest price in the industry.
We provide in-depth due diligence reports that demonstrate the value of your website, broker deals on your behalf to relieve stress, and offer a guaranteed sales policy. It is free to get startedTry our valuation tool and see how much your company is worth today.