Would you like to evaluate the worth of an online business? If so, this article is for you! By the end of this article, you’ll know how to evaluate the worth of an online business or website! Feeling interested? Then, keep reading…
Your online business is doing exceptionally well and you feel that it’s the right time to evaluate its worth. But, how to do it?
You’ve been working hard to grow your online business and now you want to take a step back and determine whether you should sell it or not. But how do you know if your online business is worthy of a good amount of money?
How do you calculate the worth of your business? How can you determine whether an online business is valuable or not?
The truth is, there isn’t a straightforward answer to these questions.
Calculating the worth of an online business depends on several factors including its age, customers’ loyalty, and the industry it belongs to among other things.
However, I’ve gathered some points that can help you to evaluate the worth of your online business based on different factors and circumstances.
The best part?
I will also show you an excellent valuation tool offered by Flippa that can help you to easily calculate the worth of your online business.
So, let’s not waste any more time!
Let’s start evaluating the worth of an online business right now!
Let’s start!
First and foremost, you should determine its revenue stream. Generally speaking, the more revenue your online business is making, the better it is.
Also, depending on your specific niche, it might be hard to calculate how many customers would actually buy your products or services.
For instance, if you’re in e-commerce, you can get a considerable number of visitors who are considering buying your products. However, only 5% will buy your products while the other 95% will just keep on browsing your site.
What is more important is your business’s social proof.
The more likes or shares it has, the better!
You can mention this information on your sales page and hopefully, you’ll be able to convince new customers to believe in your business model.
It might be difficult for a newbie to sell his or her business as the owner will have no established track record. In that case, you can rely on your online community and social proof. If you’ve managed to create a positive buzz around your brand, then it’s definitely worth more than what you might think.
The next thing that you should be aware of is the competition.
It might hurt your feelings but it’s true that your business won’t be unique. If there are similar online businesses already operating in the same industry, then why would a potential buyer spend money on you instead?
And, that’s where you have to stand apart.
You can mention the uniqueness of your online business and emphasize its unmatched excellence over the competitors.
As you can see, it can be hard to put a price tag on an online business.
But, don’t worry!
To make things easier and give you a better idea about how to evaluate the worth of your online business, I strongly recommend checking out:
Flippa Business Valuation tool
Flippa – the #1 marketplace to buy websites, online stores, and digital real estate – is now making it super easy to get a valuation of your online business.
The best part?
You can try out the Flippa Valuation Tool for free!
Just go to this page and enter your business details including revenue and traffic statistics. After that, Flippa will let you know how much your online business is worth! So, if you want to find out how much you can sell your online business for, then try out the Flippa valuation tool right now!
The Flippa Business Valuation tool is very simple to use.
And, it is presented in an interactive chatbox which allows you to calculate the worth of your business in just a few minutes.
The whole process is so quick, I bet you won’t need more than 5 minutes to get a reasonable idea about how much your online business is worth.
Not only that, if you wish you’ll be able to sell your site at the price indicated or put it up for auction immediately to see if you can get more.
So, let’s see how it works…
To get started, just visit the Flippa website and click the “Get a Valuation” link on the top right corner as shown in the image below:
The tool lets you chat with an AI-powered bot that asks you several easy questions to get a better idea about your website and business.
The chat session starts with a welcome message!
Welcome. To provide an accurate valuation of your online business we need to ask you some questions about your business? Are you ready?
You get options to either “Yes” or “No“.
Answer the questions one by one and you’ll be surprised at how quickly Flippa is able to provide you with a valuation of your online business.
First, you will be asked some basic questions, such as the name of your website, domain name, your business model, etc.
You’ll be able to answer easily by just selecting the right options given and you do not need to provide any additional information. Next, you will be asked about your traffic and revenue statistics.
Just enter the data and Flippa will do the rest for you!
Here are some of the questions I was asked when I tried the tool:
- What is your name?
- What’s your domain name or URL?
- What year did you start the business? (e.g. 2015)
- What is your main business model?
- What type of Content Site do you own?
- What is your main monetization method?
- What is the industry you operate in?
- What was your total revenue for the last 12 months? (e.g. $550,000)
- How did your most recent month of revenue compare to other months? Did it decline, increase, or was it stable?
- What were your total expenses for last 12 months? (e.g. $500,000)
- How many monthly users did your website get last month? (e.g. 10,000)
- How do you generate most of your website traffic?
- What percentage (%) of your traffic is organic?
- Is this your business you’re getting a valuation for today?
- When are you looking to sell your online business?
After answering the questions, it will take a few seconds to get your valuation ready and you’ll need to provide your email address to complete the valuation.
Once you share your email address, you will receive your valuation!
The success message looks like this:
Simply click on the “To view your valuation click here” link.
In my case, it took less than 3 minutes from providing my domain name, and then I received my estimated worth in just a few seconds.
You can also receive your valuation within minutes.
Like this:
Once you’ve received the valuation, you can see that it shows many details about your online business including the traffic data, revenue data, estimated earnings per month (EPM), history of the business, and many other details.
Additionally, you also get trend charts that show how your revenue and traffic have been over time and you get more details on your business.
Once you have the valuation, you can use it… or simply auction your business on Flippa to see what sort of a deal you can get for it!
You’ll be able to list your website for auction right away.
Flippa Listing Costs
You might be wondering what are the Flippa listing fees…
Flippa charges only 10% from your sale for up to $50k. So, if you sell your online business for $50,000, you’ll only pay Flippa a commission of $5,000. If the sale amount is more than $50,000, Flippa will cut a 7.5% success fee.
For over $100k sale, Flippa charges a 5% success fee.
- $0 – $50,000: 10%
- Over $50k and below $100k: 7.5%
- Over $100k: 5%
So for a $100k sale, you’ll pay a total of $7.5k in fees to Flippa… not bad at all!
There are also fixed listing fees:
- Established Websites and Online Businesses: $49
- Starter/Template Websites: $15
Listing fees are what you pay to get your listing activated on Flippa. And, success fees are what you pay when you successfully sell your business.
Considering that your business is an established one, you’ll pay $49.
The good news is, you get your full valuation report for FREE. So you can use it to list your business immediately without any hassle.
The listing is automatically created to help you speed up the process. All you need to do is just pay the payment and get your listing activated.
Once the listing is active, other visitors can find it.
You can tweak your listing or edit it anytime you want… without any extra cost. You can also choose to sell your business via an auction or a “Buy it Now” price. Just set a price that you are ready to sell your online business for.
Sell Your Online Business on Flippa
You can opt to list your business for auction on Flippa.
Flippa is the world’s largest marketplace for buying and selling websites, online businesses, domain names, and all sorts of online assets. Every month, millions of dollars worth of websites and online businesses are sold on Flippa. So, it’s a perfect place to sell your online business too.
So, what will you do now?
You can list your website for auction on Flippa for a price and see if anyone is willing to pay that price or perhaps more.
For auction listings, the minimum opening bid is $1.
You can sell your website or online business with Flippa for a fixed price too. This is the easiest way to get rid of your website or online business.
The ‘Buy it Now‘ price on Flippa is a price you put for your website or business. A bidder can decide to purchase your website or business without any bidding. It is a guaranteed price that you want to sell your business for.
You’ll get paid through PayPal once the transaction gets completed. Flippa charges only 10% from your sale for up to $50k. Learn more about its fees here.
Flippa Escrow Service
Flippa offers an escrow service to buyers and sellers.
So, you don’t have to worry about sending your website or online business directly to the buyer and not getting paid for it.
First, the buyer will have to make the payment and then the money will be held in the escrow account, and once the buyer receives your website and confirms, then the money will be transferred to you.
No matter whether you are a seller or a buyer, it makes it safe to transact, sell or buy websites on Flippa without any worries.
Almost any kind of online business or website… from a successful blog, online store, or ecommerce website generating thousands of dollars every month can be sold or bought on the Flippa website.
Yes, you can also sell your websites and businesses on other platforms, but why not sell it to thousands of buyers on Flippa?
And, the escrow service is also offered at a reasonable price.
So, now what?
If you have just evaluated the worth of your online business or website and you wish to sell it at the estimated price, you can easily sell it on Flippa.
Or, if just want to check your business valuation out of curiosity, you can check it too using the Flippa Business Valuation tool.
It’s easy, fast and doesn’t require you to pay anything.
How Much will You Earn if You Sell Your Online Business on Flippa?
There is no fixed price you can earn when you sell your business. It depends on the potential of your business and how well it is maintained.
So, even if you want to know what price you can expect to sell your business or website for, no one can tell you its accurate value.
At best, Flippa can tell what is the general worth of your business.
How much will you pay to sell your online business?
Flippa charges only 10% from your sale for up to $50k.
And, if you are wondering how long it takes to sell your business, it depends on the buyer and the price you set for your website/business.
If you are using an auction listing on the Flippa marketplace, your online business will be sold to the highest bidder. If you are using the ‘Buy it Now‘ option, your website will be sold to the user who has offered this price.
Can You Trust Flippa’s Valuation Tool?
Yes, you surely can.
There is no doubt that Flippa is one of the best places to sell or buy online businesses and websites. It’s secure, reliable, and trustworthy because it has been in business for over 10 years now since June 2009.
Flippa’s Intelligent Valuations Engine is supported by the world’s largest database of sales data and can accurately analyze your business.
With over 10 years of transaction data at your fingertips, you can get a pretty good estimate of the value of your online business.
The best part?
It takes as little as 3 minutes to get a valuation!
Flippa is like an encyclopedia for every type of digital asset. This gigantic data is combined with the information you provide about your online business to provide you with the world’s most accurate valuation.
Final Thoughts
To sum it all up, figuring out how much your online business is worth can be tough. However, with the right tools and some effort, you’ll definitely get a more accurate valuation of your online business!
Flippa makes it easy for you to get a good idea about how much you can ask for when selling your business, or when trying to find a potential buyer.
The best thing?
You can use the valuation tool for free and it doesn’t take long. Also, Flippa provides you with a safe platform to sell or buy any business or website.
As you check your valuation, you’ll be ready to sell your business on Flippa.
You just need to pay the listing fee to activate your listing. Your website listing will be automatically created for you.
However, keep in mind that Flippa’s valuation tool is only an indicator.
The final decision is up to you.
You can choose any price you think is appropriate for your online business. Also, it’s your decision whether you want to sell or not.
So, what are you waiting for?
Try out the Flippa Business Valuation tool right now! It’s free.
Finally, if you have found value in this article and think it is useful, please do me a favor by sharing it on your social media profiles.
It really helps me a lot and I appreciate your time! 🙂
