Even though we are diligent in screening and reviewing our clients, their business financials and fundamentals prior to engaging them and listing their internet businesses for sale, occassionally we have some website businesses that precipitately descend in their traffic, revenues and other fundamentals during the course of selling their business.
Sometimes, as in quarter 4 of 2008, it was due to an overall sharp down turn that most businesses suffered a setback. However, many times it has to do more with how the seller is operating their business, or has been running it prior to contacting us to sell.
The most common reason for business revenue atrophy seems to be correlated with the seller's dip in focus, passion about their business or just laziness! Once their mind is taken off their website business and they are not actively working on evolving or improving it, many online businesses start to decay - some slowly and others rapidly. Too many sellers, especially ones that have created what are termed as passive revenue websites - such as a niche content site that serves up adsense ads or affiliate links that they earn commissions - sit back in cruise mode and don't continue to push the envelope and continue with their content and link building to improve their search engine positioning or even dominance.
We always counsel our clients to continue working their internet business for sale as if they were planning on keeping it and striving to hit the next elevated traffic and revenue targets. Websites for sale that show progressive earnings and traffic growth are always more attractive to buyers and sell for larger multiples in the end.
Recently, we have experienced a few listings where our clients have pretty much dropped the ball and let their online business's atrophy to the point where we can no longer get behind the opportunity and continue selling it for them in good conscience - even at a fire sale. Consequently, when it hits this tipping point, it is time for us to jettison the business listing from our current websites for sale page and file it in archives where it will rust along with other sites that met the same fate because of their truant owners that inevitably were trying to dump their business before it started the downward inertia.
To preserve our websites reputation of presenting quality internet business for sale opportunities, we regularly assess our inventory and have taken to culling the sites that no longer measure up to our standards or our educated and savvy buyers' standards who subscribe to our buyer alerts or regularly visit our website and who count on us to deliver a quality product and service.
David Fairley
Founder & President
www.websiteproperties.com
Currently rated 4.0 by 1 people
June 8. 2009 11:15
As a website entrepreneur, I have learned this the hard way. While I was excited about some new opportunities, I stopped focusing on my other business and it began to decline. My heart just wasn't in it anymore and so I spent more & more time on other projects hoping a buyer would see its potential and want to snap it up. Unfortunately, buyers weren't as interested in potential as they were in its historical and current trend. I ended up taking much less for the business that I had put so much time, effort and money into creating because I didn't have the patience to see it through with continued succcess to its new owner.
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June 8. 2009 13:51
Thanks for the useful article -- wise advice. Your company has received a strong recommendation from the buyingandsellingwebsites.com guys as a web site broker, and we plan to work with you on our next site sale.
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July 19. 2009 20:02
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September 15. 2009 10:49
It's funny, but I would even go as far to say that towards the Holiday season that site owners let their sits slip further than they do during any other time. It's understandable that they are busy, and things happen, but what is really striking is that each and every year it seems it takes the owners even more time to get back on track.
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October 11. 2009 19:36
Well being an website entrepreneur. i have learned that sometimes it just gets so hard to be focused on everything....and in this process we lose number of opportunities.
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Searching for this for some time now - i guess luck is more advanced than search engines
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I like your topic which is connecting sellers with buyers around the world. I guess its cool to become an entrepreneur specially it is connected around the world. It will make your business known not only to your own country but others as well. Hope I can be part of that.
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I guess there's always an easier way ...
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December 17. 2009 07:40
You really have to stick to it right up until you sell the website. If you don't you could shoot yourself in the foot by walking away from the website mentally a bit to early.
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I see many business owners who ides to sell their business just because of worrying with temporary phase of downtimes. More business owners primarily concentrate up/on the current requirements and aspect of the business instead of trying to know future business requirement using modern analytical tools.
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Interesting topic, it seems like SPAM websites aren't usually an attractive website to sell, and certainly isn't what a owner of a website marketplace wants to have on their website. With that said, a website that can generate, say, $50 in revenue strictly off a spammy adsense site does look attractive to buyers.
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Yes, but businessman needs to rememmber that somethings downtimes are a good thing to happend to their business, they just have to be prepare for those times.
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Interesting post. It generally happens when we concentrate more upon increasing sales our popularity graph goes down. The best solution to this problem is to depute separate teams for each task as both tasks can’t be mixed.
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The opinions expressed herein are meant to provide information based on the personal experience of each broker posting to this blog.