How to make a successful web business sale:
- Do Your Homework:
Before posting an online business or digital asset for sale, take a look through similar postings on hatchit.us or elsewhere on the web. You want to get a sense for the price and terms of competitive offerings.
- Come Up With a Price:
Correctly pricing your item is key to a successful transaction. It is tempting to list a business or digital asset based on the amount of time and money you invested into it...don’t fall into this trap! Think instead about what the asset is worth to a buyer. Try and price your asset low enough, so the buyer will save some time and money or generate a reasonable return on their investment. At the same time, not so low that you leave money on the table. If it's an established business, you might check online valuation calculators or get an opinion from a CPA or valuation professional.
- Showcase Your Asset:
If you’re selling your house, you clean it, declutter it, and maybe even bake cookies before the seller comes over, right? In order to sell your asset quickly and at the highest price, take the time to showcase it! Without providing too much information, create high quality PDFs, screenshots or pictures for your listing. Perhaps even include a short 30-90 second video. Make sure you fully describe what it is you are selling. What precisely is the buyer getting for his or her investment? How much time and money did you put into creating it? If it's an established business, include historic revenue and profitability, growth metrics, time requirements, transition support, and other key considerations.
- Keep an Open Mind:
Ultimately the market will determine the value of your online business or digital asset. Be open to reasonable offers below your asking price. There may be other things beyond price that are important to you. What are the buyer’s plans for the business or digital asset? Are you comfortable with the terms of the sale? Write a list of the things you want up front to help decide whether or not to accept an offer. If your business is in a competitive market, you may want to require a buyer sign a NDA (Non-Disclosure Agreement) to protect the privacy of the confidential information you share. You can access a template from our partner LawDepot.com.
- Receiving an Offer: There’s nothing more exciting than getting an offer for something you’re proud of! When accepting an offer, it is often prudent to summarize and confirm agreement on the key elements of the deal, as well as next steps. When rejecting an offer, advise the buyer if you plan to make a counteroffer. Providing feedback to the buyer will foster greater communication and bolster your counteroffer. If ultimately you cannot come to an agreement, provide final feedback so the buyer understands why you are rejecting it. This may help the buyer make a more acceptable offer next time.
- Develop and Sign a Bill of Sale or Asset Purchase Agreement: The buyer and seller should agree to and sign a bill of sale or asset purchase agreement that transfers ownership of the assets from the seller to the buyer. Depending on the complexity and size of the transaction, a document can be very simple or very complex. The buyer and seller should determine whether they need an attorney to help draft a document for them, or whether they can use a template from our partner LawDepot.com to create their own. Be mindful that developing a document without the help of an attorney can place you at some risk. At a minimum, an agreement should identify the parties, specifically define what is being purchased, outline the purchase price and terms, including representations and warranties on the asset and its ownership, and describe how and under which state laws any disagreements will be handled.
- Transfer Assets and Funds:
Upon signing the bill of sale or asset purchase agreement, the buyer will make payment according to the agreement and the seller will transfer the asset to the buyer in the manner described in the agreement. Before extending payment, please read our FAQ on scams and fraud. We highly recommend conducting the transaction through our partner, Escrow.com, to ensure the asset is as represented before funds are released.
- Confirm Receipt and Satisfaction:
When using Escrow.com the buyer has the opportunity to examine the business assets and approve it prior to transferring funds to the seller. And, the seller has the opportunity to ensure payment has been made to Escrow.com prior to releasing their asset.