10 tips to maximise valuations when selling websites

Flipping websites can be a highly profitable business model. However, getting the most out of a website sale requires considerable hard work and preparation. While valuations for content websites are relatively universal, final sale valuations can still vary widely.

The final valuation can mean a significant difference in the price paid for a website and, for that reason, it is worth taking the time to optimise the process in order to achieve the highest possible final sale price.

This guide will outline ten tips sellers can use to set their website up to achieve the highest final valuation possible. First, however, it’s important to consider why sellers should take the time to position their website for a sale prior to undertaking the process.

Why sellers should position sites pre-sale
Going through a concerted process of positioning a website pre-sale can deliver several benefits to both the sale process itself, as well as its final outcome.

Firstly, positioning can help the site to look as good as possible to prospective buyers. The positioning steps outlined here can help to attract more potential bidders, something which will, of course, help to increase the final sale price.

If the website is one that is only likely to attract a smaller group of bidders, then positioning it precisely is crucial in convincing that small pool of potential buyers that the site is a worthwhile investment.

Tip 1: Create a profit & loss (P&L) spreadsheet
Creating a P&L spreadsheet for a website pre-sale is a simple, helpful step but, nonetheless, one that many website owners don’t bother with when it comes to selling their site.

A P&L spreadsheet will present the figures buyers most want to see - revenues, costs and expenses - over a period of time. It will help to clearly answer any “gross profit vs net profit” questions that might arise during the sale.

On top of this, it will demonstrate that the seller is a professional that takes owning and building websites seriously. If owners have the time and ability, creating a cash flow statement and balance sheet would be very useful extras, and exude another level of professionalism.

Tip 2: Document the major improvements
Another extremely simple and highly valuable resource to prepare before marketing a website for sale is a list detailing the major improvements that have been made to the site. This will show potential buyers the work and effort that has gone in to the website’s performance.

Outlining a website’s areas of improvement can be important in justifying a higher valuation and can be extremely useful if the bidder(s) are experienced site builders that know the value of the improvements that have been delivered.

Tip 3: Highlight the reasons for selling
For many buyers, the first question that they think of when they see that a profitable website is for sale would simply be: “Why is the owner selling this site?” If they don’t receive a good answer to this question, then sellers may find that they quickly walk away from a potential deal.

For that reason, it is vital for sellers to spend some time considering and outlining their response to this query. The answer needn’t be anything special, just a clear, concise explanation of why the website is being sold that helps to assuage any fears on the buyer’s side.

Tip 4: Highlight easy wins for the buyer
One thing potential buyers will be eager to see is simple steps that they can take post-acquisition to help make the website even more profitable and valuable in the future by improving traffic and revenue.

Being presented with a clear, well-researched list of these “easy wins” can be useful in convincing a potential buyer to proceed with a deal and can also improve the final valuation of the sale.

Here is an example:


Tip 5: Highlight revenue-specific easy wins
When considering the “easy wins” sellers can present to potential bidders, it can be useful to focus in particular on things that will help buyers to generate more revenue from the immediate post-acquisition period onwards.

Sellers should outline areas where they know more revenue could be generated and point out to bidders that, if they weren’t selling, they would take these steps. Perhaps the site qualifies for a better display advertising programme? Or maybe affiliate programmes could help to generate more revenue?

Whatever specific revenue-generation strategies a seller comes up with, highlighting ways that the buyer can quickly drive higher income is a great way to both attract bidders and to push for a higher sale price.

Tip 6: Improve site design
It’s an unfortunate fact that many content-based sites are poorly designed and this is something that can quickly put a buyer off. For that reason, owners positioning a site for sale should look at how they can improve their site design.

Aspects of site design that buyers may want to consider include:

- Redesigning the logo
- Improving the quality of featured images
- Usability - is the site structured in a way that makes it easy for the visitor?
- Adding more detailed information to the footer section, such as contact information, social media pages etc.
- Design a unique, dedicated homepage, rather than just an archive list of posts
- Add an “About us” page featuring the story behind the website and its founders

Tip 7: Improve content quality
When examining a potential acquisition, website buyers will look at the site’s most recent articles, as well as those that have generated the most traffic. Ensuring that a website’s top content is of a high quality will interest buyers and help to assure them that the site’s content and SEO strategy is poised to deliver future success.

Tip 8: Generate higher revenue pre-sale
It stands to reason that if a website is generating higher revenue prior to a sale, then the seller will have justification in pushing for a higher price. Increasing revenue as part of a positioning, then, can be an excellent way to improve a website’s valuation.

More revenue sources can also mean that a website has more ways to optimise its income and increase its total profit. Furthermore, having a diverse revenue stream can ensure the site is more resilient as a business going forward. These are all things that will be highly attractive to potential buyers.

Tip 9: Build additional assets for inclusion
In the same way that new sources of revenue can drive interest in a website pre-sale and ultimately improve its valuation, so can building additional assets. While positioning a website for a sale, owners should consider what new assets they can develop.

This may be something like a large, active Facebook group of customers or users, digital products such as e-books or an active list of email subscribers. Assets such as this are valued highly and, in combination with a website’s content and revenue streams, can help to significantly boost the sale price. The seller ought to create an asset inventory list.

Tip 10: Have draft content ready to go
When a buyer takes over a content site, then they will need to adjust to the site’s CMS, formatting, internal linking, image adding processes, editing and rewriting guidelines, among other details.

Even for an experienced buyer, this can result in a somewhat disrupted integration (on the content front) that may become noticeable to subscribers and other users. For that reason, potential buyers will appreciate draft content being included in the sale.

In addition to the content that is already on the website, sellers can also look to offer 10 or 20 draft articles that are ready to go once the new owners take over. Every one of these draft articles is a piece of content that the new owner won’t have to write, commission or buy and this is something that will be highly appealing, helping to improve the site’s attractiveness and enabling the seller to push for a higher price.

Actionable takeaways
There are many ways that owners can prepare a website for sale and following these key takeaways can have a direct impact on the final sale price.

- Positioning a website pre-sale can be crucial to getting the best valuation
- Create a profit & loss (P&L) spreadsheet
- Identify and document the major improvements made to the site
- List “easy wins” that can enable the new owner to quickly grow traffic and revenue
- Improve the site’s overall design and quality
- Build new revenue streams and assets, and document this for the seller
- Consider adding additional resources, such as draft content, to the package


The writer: Mushfiq Sarker is a prolific investor who buys, grows, and sells online businesses, and specialises in content websites . He has completed over 200 website flips to date, several resulting in 6-figure exits. He is experienced in all aspects of digital marketing and acquisitions and shares his thoughts at The Website Flip.

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