For all the reasons you might have for wanting to sell your website, there are some pretty strong reasons why you shouldn’t. Not for now at least. The worst thing you might do is to sell, as they say, the goose that lays golden eggs. You would not want to see your great investment thriving in someone else’s hands while it was all yours in the beginning-until you got desperate.
Let’s take a look at three reasons why selling your website now may not be the best decision you’ve ever made.
You won’t be financially free
Even if your website is worth $1M, selling it at that price may not guarantee you financial freedom. It’s a good price no doubt, but if you have no plan for the money, then you’ll be making a poor decision. And how’s that? It all boils down to the assets at your disposal. Think of your website as an asset (something that generates income) and compare it the other assets you have. Are these assets appreciating at the same or greater value than your website? If not, then it would be prudent not too sell.
You may still be seriously considering getting that huge paycheck and using it for another successful venture. But succeeding is by no means a guarantee-though you may have had some great success in the past, you can’t be dead certain that your next shot will be successful. Your entire retirement might depend on your website-you only need to see it that way to understand its value. Remember that having money without a plan is not good enough for you in the long term.
You are in a Bad Financial Position
Now is not the best time to sell if the financial records of your website for the past one or two years are not good. If you can, try and hold on for a little longer while you improve its finances. Taking the right steps to fix the revenue streams-however long it may take-will guarantee a better sale price for your site.
If you really need the cash, you might want to consider selling only a percentage of the equity. A co-ownership agreement means you do not lose complete control of the website and buys you enough time to grow the revenue. Once you get the site to a healthy position, you can then sell the rest of your equity. It is easy to get a lot less than what your website is worth because being in a bad financial position makes you desperate.
Rushing to make a sale is also not advisable for the simple fact that you could get a raw deal. Someone could tempt you with an enticing offer that will drive your mind wild. If you make a decision at the spur of the moment, there’s a good chance you’ll regret it. It’s nice for someone to flatter you with a good offer, but you must stay level-headed at all times and think straight.
Your Have Curved a Niche
Maybe you set out to build a wonderful, resourceful website in your niche. You have the expertise, the tools, the passion-and the revenue is starting to climb. You might have also taken a lot of time to painstakingly building a rich community around your website. To an ordinary person, it would be absurd to give this up. But then, the money might come callingâ€¦
In this kind of situation, think about how well you are doing in your niche, the time and effort it has taken to get there, and if you’re ready to give that all up. More importantly, if your revenue is on the rise and the potential for growth is high, now may not be the ideal time to sell your site. If you could just hold on for a little longer, your earnings could multiply significantly and there would be no reason to sell your website. But even if you were to sell, it would be for much more.
If you decide to sell your website, just make sure you’re getting what its worth. If that isn’t the case, then hold off the sale and optimize your site for better revenue performance. Only then will you get an offer that’s right for you.
Tom writes for valuator.com.au â€“ see here about the value your website should be at before buying.