Step by Step Guideline on Selling Niche Site For The Highest Price with FE International!
One of the best parts of building and running a niche site is that your site is actually a sellable asset.
If you are ready to move on to building a new site, change careers, or just want a break from the online economy, selling a niche site that you have previously built is a great option for raising some extra money.
Building niche site, and flipping them is my core business. I do it often.
In fact, I sold one of my niche sites for over 50K US Dollars last month (I can’t disclose the exact amount because of the NDA I signed with the buyer), and as usual I had to go through a long process of selling niche site.
Today, on this post, I’m going to share my experience, and write a guideline for you so that you can sell your niche site for the maximum multiple with the best broker I have experienced, FE International.
Why to Sell Your Niche Site
If you are considering selling a niche site you have already built but aren’t quite sure of whether it’s the right time to do so, here are a few good reasons to sell your site:
- You want to build a new niche site on a different topic, and new need money to invest.
- You feel that you have reached your growth potential, and haven’t seen visitor or conversion rates go up recently.
- You want to pursue a new career and are done working as an online entrepreneur
- You want to invest your profits into a different type of site.
I know it can be hard to step back from a niche site that you have built from scratch and decide that it’s the right time to tell. But there is some very good money to be made in selling niche sites once you have built a successful site.
I sold my niche site because I wanted to invest in a couple of niche sites with the money of one.
I used the brokerage service from FE International to smoothly and securely close the sale.
Why You Need A Broker To Sell Your Niche Site
People use brokers to sell everything from property to automobiles.
There are several good reasons why you should turn to a broker to help you sell your Amazon niche sites, even if your first instinct is to try to sell your site yourself.
The biggest reasons why you should turn to a broker is that they will always be able to get you a higher price for your site, since they know what good sites are worth and will help you find qualified buyers.
There is very little work required from niche site owners when a broker is involved, and this can make a huge difference especially in the realm of marketing.
Plus, a broker will help you make sure that everything is safe and legitimate for both parties before a transaction occurs.
Also, there are some legal issues that you always want to avoid. When a brokerage service is involved, they take care of everything.
How Much Can You Sell Your Niche Site For?
The answer to this question of course depends on how well your site is doing, but there are a few rules to follow to help you guess how much your site is worth. Niche sites are valued based on a multiple of how much income your niche site generates per month.
Generally, successful sites can sell from anywhere between 20 and 35 times the income they generate in a month on average. Buyers typically average from the past three months’ revenue in order to find a fair value.
If you are niche is seasonal, then buyers want to average 1 year of income.
The first niche site I sold was valued 15x of my monthly income (which is very low. I sold the site for the lowest multiple because I didn’t know how much I should ask to my buyer and I used a different broker). Fortunately, the last site I sold with FE International was valued 25x of my monthly average.
A good broker will help you sell your site for a higher multiple of its monthly worth, and to my experience, FE International offered me maximum multiple for my niche site.
Broker Options to Sell Niche Sites
There is always the option of selling your niche site on your own (like I did to sell my first niche site), but if you want to get the most for your site and make sure that your transaction is safe and secure, working with a broker marketplace is your best bet.
Here are a few of the most popular:
- Flippa claims to be the number one place for buying and selling websites, and they can help you sell other things like apps and domain names as well.
- Freemarket is a great site that is very cheap, with free listings and low commission fees when your site is sold.
- EmpireFlippers specializes in niche sites and is one of the most popular places to sell Amazon affiliate niche sites on the internet.
- FE International has been helping people buy and sell websites since they launched in 2010, and they are my personal favorite option for selling niche sites.
I worked with with almost all of the platforms mentioned above. But FE International is my all-time favorite! I really loved working with them.
Why I Prefer FE International?
While EmpireFlippers is also a popular place to sell niche sites, there are a few reasons why I personally work with FE International and recommend them to anyone looking for the right place to sell their site.
I’ve found that the site valuations on FE International are higher.
You want the person who is selling your site to think it is worth more, so they can get a higher price for it, and FE International has always seemed to give me fair but higher estimates of what my sites are worth.
No Listing Fee
FE International doesn’t charge any up front fee to list sites.
They only get paid based on commission if they actually find a buyer that ends up paying you for your site, so their team has a lot more motivation to get out there and sell your niche site.
They charge 15% as commission when the site is sold.
Strong Relationship With Potential Buyers
FE International is incredibly active on online forums, the internet marketing community, and elsewhere, and that’s because their team is constantly doing all it can to sell your sites in order to earn their own commission.
Experience of Selling Big Sites Within Short Time
Finally, I prefer FE International because they are a very serious company that I know I can trust. They have been in this business for quite a while and they have negotiated some huge sales, even closed million dollar deals, and their team is all incredibly professional.
How To Sell Niche Sites With FE International
If you are ready to jump into selling your niche site, I do strongly recommend you give FE International a chance. If you do choose to go with FE International for your niche site selling needs, here is what the process will look like:
Let’s dive into the details!
Step 1: Assessment and Valuation
Before a broker like FE International can work hard to sell your site, they need to know everything they can about your site.
One of my favorite parts about FE International is they won’t charge a cent for their assessment step. Once they have completed the valuation process and told how long they expect it will take to sell the site.
How long this step takes?
For me, they took only an hour to get back to me, after I expressed my interest using a contact form. Thomas Smale, Founder of FE International himself added me on Skype, and took all the information, and discussed me about the site.
We closed our valuation and assessment steps within two hours of my first contact with them!
I know some people won’t believe it, but this happened with me.
To complete the same steps with another company took 2 weeks last time. FE International took only 2 hours!
The site I sold with FE International was created 9 months ago, and making around $2500, passively. I was not doing any work on the site since I created, it was completely passive, so no cost was involved at all.
They valuated my site 25x of my monthly average income, and they listed my site with $62,500 (more details below, keep reading…)
Step 2: Preparing Sales Prospectus
Once FE International has told you how much they think they can get from your site and how long it will take, if you decide to stick with their team, they will immediately get started preparing your site for sale.
In this stage, FE International will get a lot more information about how much your site is making and how well it is doing.
Then, FE International’s team prepares an in-depth prospectus that is given to potential buyers to help them understand your site and its successes.
They might ask more questions about the site, and some USP (Unique Selling Propositions) of the site that will make interested buyers to take decision.
For me, Thomas introduced me with Katrina Ives and James Morrish of FE International. Katrina sent me a document to sign online with RightSignature.com. It was all about representing my website to seller.
After signing the document, James Morrish asked me about my site, what’s the biggest USP, why should buyers be interested in my site, and related stuffs.
James sent a prospectus once they are done with making it final within a couple of days. Once I confirmed everything was right, they proceed to next step.
Here is a page from the prospectus they prepare:
Step 3: Buyer Outreach
FE International takes initiative to marketing listed site on this step. They reach out to existing clients who have expressed interest in buying.
They have a database of thousands of buyers, and they aggressively market listed site to any potential buyers.
Additionally, they list site details on ‘Buy Website’ section of their website. Here is the link of my listing:
There is chance that they get some interested buyers from website listing too.
Once my prospectus was ready, they reached out to their existing buyers, and updated me on a regular basis. On this step, James was in charge, and he informed me updates regularly.
We had a lot of discussions on Skype too.
Step 4: Sale Negotiations
Once FE International has marketed listed site far and wide, the offers usually start coming in quickly. Their team will continue to pursue interested buyers and help site owners look for the highest offers possible.
Then, they negotiate with buyers directly to make sure that the site is sold for the right price to the right person.
They took only 3 days to close my sell once they hear interest from a potential buyer.
Only. Three. Days.
Step 5: Due Diligence and Closing
After the right buyer has been confirmed, FE International will start the process of due diligence, digging into listed site more closely and looking at buyer and seller requirements to make sure that everyone is getting what they want out of a deal.
After the due diligence wraps up, FE International ask both parties to sign Asset Purchase Agreement (APA) through rightsignature.com
They sent a 12-page detailed agreement to me to sign, which had the detailed legal terms and conditions like how the site will be transferred, pricing, training period, non-compete agreements and a lot.
After signing, FE International team will make sure that the transfer of ownership and payment goes smoothly.
How Payment System Works With FE International?
FE International is official partner of Escrow.com, a company provides security to both buyers and sellers when it comes to selling assets online. After signing the APA, James asked me about my Escrow.com account, and sent me a special link to accept a new secured transaction.
After I accepted, I had nothing more to do but following Escrow.com process. If you are not familiar with Escrow system, here is how it works:
Here is the process details of my niche site sell with Escrow.com:
I had to wait around 15 days for the domain to be transferred to the new owner. If your buyer has account with the same provider you registered the domain, it takes very less time. In fact, some providers allow instant ownership transfer, for that case, getting payment through escrow.com takes less than a week.
Escrow.com released my payment after inspection period is ended, which is generally 1 to 3 business days.
As I live in Dhaka, Bangladesh, I selected International Wire transfer as payment method from Escrow, and received the fund within the same week in my bank.
FE International charged me 15% of my site sell value, which we confirmed when listing, and Escrow.com deducted brokerage fee before releasing my fund.
If you’ve spent the time and money to build up a successful niche site and decide that it’s time to sell, you of course want to make sure that your sale goes smoothly and that you get as much as you can from your site.
Working with a broker is the best way to make sure this happens, and FE International is my personal favorite place to sell niche sites.
From start to finish, FE International has always been very helpful when I’ve worked on selling my own sites, and they stick with me through the closing process.
I loved the continuous support of Thomas Smale, Founder of FE International, and loved the cooperation James Morrish did during the selling process of my niche site.
My site was sold within 30 days of first contact with the company. You can get in touch to sell a site with them here.
If you need any help, or have question in mind, feel free to contact me, and I will try my best to get your niche site sold with maximum multiple.