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Tuesday, February 12, 2019

How do You Determine Asking Price when You Sell a Website? :: Sell Websites Buy Web Sites

How do You restrict Asking Price when You Sell a Website?Reprinted with permission of VotanWeb.comWhen you have last made the difficult decision to sell your website the first thing that inevitably to be established is the inquire price. Setting the asking price is not an arbitrarily process. If a website is priced well be mortified where it should be, two things impart near likely happen First, you go forth not sell the business for the attain you should and you and or your co-owners/shareholders have been poorly served at best. And second, you might find that you will have more trouble selling it than if priced appropriately higher.If your website is priced too low, it will appear to well-nigh buyers that the deal moldiness be too right-hand(a) to be true. And we all know what we have been told about that. So beware, low pricing may actually scare away otherwise raise buyers. Of course, it goes without saying that if the website is priced too high then there will be litt le or no interest on the part of adept buyers. An irrational asking price is not going to help you come across your goal of finding a buyer for your website. Now that we have discussed the immensity of pricing and what not to do, let me next say there is no exact science for coming up with an exact asking price. We must deal with a st area mix of art and science. The best asking price is that which will attract the greatest number of potential buyers. In our effort to determine this optimal price, we must resort to guidelines and rules of thumb. One of the most popular rules of thumb being used today is the Cash-flow or gross Multiple Method. Essentially you multiply your annual pre-tax earnings by rough twofold of x and you have your price range. When a website has little or no earnings, then a similar method is applied on the revenue number. Both buyers and sellers widely use this method because of the relative union and measurability. Also for buyers, they can easily deter mine their ROI (return on investment) as the multiple can be viewed as some number of years. For instance, XYC.com has annual earnings profits of $500,000 and they will use the range of for a low-end of two generation (or 2 X as you will often hear) and an upper range of six times.

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