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How to Pick a Minimum Price and an Asking Price to Sell Your Website for a Profit
| One of the most difficult parts of selling a website is picking the two relevant prices for your site auction: the minimum selling price and the asking price. The minimum selling price is the lowest price at which you are willing to sell your site. And the asking price is the price that you post on your auction. When it comes to setting an asking price, I suggest that you pick the highest price that you could ever expect someone to feasibly pay. Picking a price that is too high will discourage people from bidding. On the other hand, picking a low price will discourage anyone from bidding over it, since this is the price you're asking for—and, thus, buyers expect that you will accept it immediately. As far as the minimum price goes, I would suggest setting it close to 5 months of profit. This is usually the lowest amount you can expect for a site that has well-documented sources of revenue and traffic; however, I highly suggest holding out for a higher bid if possible. How to Negotiate with Buyers One important part of selling is negotiation. Often, when it comes to selling your site, you will not simply hold a sealed-bid auction with a definite end time; or an ascending bid auction with a definite end time. Instead, you will post an asking price; and leave your listing up indefinitely until you get an offer that looks good. And this is where the negotiation part comes in. When buyers submit an initial bid to you, there's a good chance that this isn't the most they will be willing to pay. In most cases it will be anywhere between 50% and 75% of what they are willing to pay. This is why it is important for you to negotiate with them and to try to find out what they are willing to pay at most, so you can push the price close to it. Fortunately, the strategies you will (or at least should) employ when you sell are almost identical to the strategies we discussed earlier for buying. The primary difference now is that you have all of the information and the buyers have nothing (other than their maximum bid and their initial offer). When it comes to negotiating with buyers, your strategy should be simple. First, try to push each buyer up to their max bid. This will be very easy to do if you already have a high bid. You can simply say to a buyer that you already have a bid for $X, so you cannot accept anything lower (although, you will entertain it in case the $X bid falls through). Once each buyer appears unwilling to budge, start pulling out additional information. Point out the site revenue, the amount of inbound links, and its projected success. Whatever you do, try not to cave in. Finally, once you've worked offers up to the maximum the buyer is willing to pay, start trying to close the deal. If the highest bid is someone who walked away from negotiations, then email that person anyway and offer to sell at the highest price he gave. Otherwise, simply close the deal with the highest bidder; and make the sale. |
About the Author
Brian Scott is a full-time self-employed entrepreneur. Visit Brian's free website, http://www.FastCashPhoto.com and learn about freelance photography and making money as a photographer.
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