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Most blogs start as a passion project and the thought of making money may be in the background. Blogs are there to tell a story, to lead readers on an adventure, or impart important information. There are so many reasons people start blogging.
When a blog grows and has a large number of readers on a regular basis, then it is considered a success. The volume of traffic that this kind of site receives could be very valuable indeed.
If you’re ready to move on from your blog or you’re looking to make your blog more successful for a future sale then read on.
How to Sell Your Successful Blog
Buyers are always looking for a new investment strategy and buying successful blogs seems to be the next big thing. To sell your successful blog, you’ll need to look at the blog through the eyes of a buyer.
You’ll need to go through a proven process that helps you make the blog more profitable while also making it easier to sell.
The steps that I’ve outlined below will help you prepare for making the sale while ensuring you are minimizing the potential for hiccups and roadblocks.
Your blog is valuable.
The first thing you need to think about is that your blog may be more valuable than you realize.
Most blogs get started because the owner is passionate about the topic and sinks that passion into growing a loyal following of readers. However, many of those blog owners don’t completely understand the business side and how to monetize what they’ve built.
If your blog is generating revenue, you can typically expect to receive around 2x the yearly profits. However, even if the blog isn’t generating revenue, there is still value in the sale.
For blogs that aren’t generating revenue, you will want to estimate how much your traffic is worth. You can do this by looking at how much advertisers are paying per click in your niche or industry. If they are paying 25 cents per click, and you generate 1,000 visitors per month, your traffic may be worth $250 per month.
Don’t forget to look at the value of the content you have created. Consider the amount of content and then figure how much it would cost to hire a freelance writer to replace that content.
Maintain accurate records.
The biggest factor that will affect your sale price is being able to show buyers that the blog has grown consistently since you started it.
You will need to provide audience demographics. It would be good to identify any potential revenue streams that can be implemented and that your audience will be receptive to.
Buyers will look through your traffic sources to verify the quality of the traffic. Next, they will look into your market to determine who your competitors are and how well you have positioned the blog to stand up against them.
The best thing you can do before the sale is to gather as much data as you can and make sure that data can be easily verified by a potential buyer.
Begin looking for buyers.
You can take a few different paths to find buyers for your blog.
The most common is to sell your blog in a public marketplace like Flippa. Flippa can help you start getting offers to buy the blog, but most of those offers are going to be lower than if you pursued a private sale. There are also plenty of sharks on marketplace websites so take care.
The second route you can take is a private sale, which typically happens through a business broker. Business brokers have a network of buyers that are ready to submit offers. These typically understand a business’ value more than a buyer that’s simply looking for a deal, like those on public marketplaces. A broker will charge a fee though, usually a percentage of the sale price.
Work on being a good negotiator.
If you are going to sell the blog yourself, you are going to need to be a good negotiator. You and your buyer will submit what you each want out of the deal and then go back and forth until you reach agreeable terms.
You can expect buyers to begin picking apart the blog. They’ll look at how you’ve built it, your traffic sources, and how you’re generating revenue (if you are). You should look for issues and try to address them before you get to the negotiation process.
You also allow yourself time to sell the blog. If you appear desperate to sell, a smart buyer will take advantage of this situation. They will continue to get you to drop the price until they feel they’ve gotten it down as low as possible.
You’ll need to give support.
Many buyers will know how to take over your blog and continue growing what you’ve built. However, most will expect you to provide support during the transfer process to help them step into their new role.
During negotiations make sure that the guidelines for support are clearly outlined in the terms of the deal. You don’t want to end up an unpaid employee because the support timeframe goes on endlessly.
Thinking about selling?
Building a successful blog could have been one of the hardest things you’ve done up to this point. Selling the blog could be just as hard.
When it comes down to it, selling your successful blog and cashing out big relies on you being able to devote the time and effort to get the deal done. The items listed above should make selling your successful blog that bit easier.
Jock Purtle is the owner and founder of Digital Exits, a business brokerage. He is an industry leader and expert in valuations of high growth internet companies. Connect with Jock on LinkedIn here.