What"s Your Wholesaling Website Worth?
How much is a wholesaling website worth? Why is it so important for investors to know how online businesses are valued, and how can they increase their value or their own real estate websites? Most investors wholesaling properties don't put a huge emphasis on their websites or what they are worth.
Normally they see websites as an extension of their wholesaling marketing, just as their blogs and social media assets.
Others are increasingly making their websites the heart of their investment business or the business itself.
Either way investors ought to be creating value in their wholesaling websites.
This can help generate more income and wealth now, act as an emergency parachute if deciding to sell later on, when raising capital from investors, or for when passing on and wanting to leave something of value that can easily be liquidated.
According to a new report from Digital Exits, based on studying the sales of 250 business in the 24 months up to 2013, online businesses sold higher multiples of earnings than their offline counterparts.
As with real estate the exact value of a business of any type is probably what someone is willing to pair for it, there are a couple of ways to value websites.
Comparable sales appraisals is one, although there are many variables to consider, and then the multiples of earnings methods which some may relate to the stock market or income generating rental property.
Most investors are probably aware of huge multi-million dollar real estate domain sales like RealEstate.
com, but accord to the Digital Exit's report there is actually more and increasing demand for online businesses under $200k, which most of those newer to wholesaling can relate to.
However, larger, better known and more established websites have sold for higher multiples of income in the past.
So how can investors boost the value of their wholesaling websites? Some things to consider: · Incorporating multiple revenue streams · Advertising and ecommerce sites sold for more than app and lead generation sites · Keep solid documented records · Make sure domains and related branding assets are secured · Automating business and minimizing operational demands · Reducing staffing needs · Higher profit margins are more attractive · Unique businesses that are harder to copy can fetch more So what's the best way to sell a property business? Buyers may find better deals in private sales and even obtain seller financing, but there are business brokers that will help out for a fee.
Normally they see websites as an extension of their wholesaling marketing, just as their blogs and social media assets.
Others are increasingly making their websites the heart of their investment business or the business itself.
Either way investors ought to be creating value in their wholesaling websites.
This can help generate more income and wealth now, act as an emergency parachute if deciding to sell later on, when raising capital from investors, or for when passing on and wanting to leave something of value that can easily be liquidated.
According to a new report from Digital Exits, based on studying the sales of 250 business in the 24 months up to 2013, online businesses sold higher multiples of earnings than their offline counterparts.
As with real estate the exact value of a business of any type is probably what someone is willing to pair for it, there are a couple of ways to value websites.
Comparable sales appraisals is one, although there are many variables to consider, and then the multiples of earnings methods which some may relate to the stock market or income generating rental property.
Most investors are probably aware of huge multi-million dollar real estate domain sales like RealEstate.
com, but accord to the Digital Exit's report there is actually more and increasing demand for online businesses under $200k, which most of those newer to wholesaling can relate to.
However, larger, better known and more established websites have sold for higher multiples of income in the past.
So how can investors boost the value of their wholesaling websites? Some things to consider: · Incorporating multiple revenue streams · Advertising and ecommerce sites sold for more than app and lead generation sites · Keep solid documented records · Make sure domains and related branding assets are secured · Automating business and minimizing operational demands · Reducing staffing needs · Higher profit margins are more attractive · Unique businesses that are harder to copy can fetch more So what's the best way to sell a property business? Buyers may find better deals in private sales and even obtain seller financing, but there are business brokers that will help out for a fee.