(Guest Post by Jock Purtle)
Blogging can be an incredibly lucrative career for you if you do it right.
Unfortunately, many bloggers tend to bounce back and forth between blogging and something else, never really making any headway. Life and other commitments simply get in the way.
This pattern leaves them with a blog that they could, one day, cash in on, but their lack of focus leaves them without any clue how valuable their blog could actually be.
Some of the smart bloggers that find themselves in this pattern have decided to sell their blog, or “flip” it to an investor. These sales can range from anywhere as low as $10,000, to upwards of 6-figures, or more.
When it comes to flipping a blog, that 5-figure mark is a good goal to strive for. Most bloggers don’t have a clue how to actually get to that mark, though, which is what we’re here to address today.
We’re about to cover the in’s and out’s of flipping a blog for big money, and hitting that coveted 5-figures.
Signs That You Could Flip Your Blog
One of the biggest signs that you could flip your blog for big money is that it has been growing, and you’ve actually started receiving offers from investors to purchase the blog from you.
These investors are giving you offers that are, generally, far lower than what the blog is really worth, so you will definitely want to make sure you’re proceeding with caution if you begin the negotiation process with them.
While you may, from time to time, receive an offer that is close to what the blog is worth, investors that are reaching out to you to purchase the blog are looking for a deal, and are known for submitting “lowball” offers.
This video from Yaro Starak is a perfect example of an investor purchasing a business for pennies on the dollar, and then flipping it for more than $25,000.
Before you get too deep into the negotiation process, you’re going to need to analyze what your blog could be worth. To do that, you need to first take a look at how much traffic is coming into it.
If your blog has a high number of unique daily visitors, especially visitors coming from organic search results and social media, you have a blog that’s positioned well and has increased value.
How you have monetized your blog can also have an impact on how much you’re able to ask for it. If your traffic is being monetized through a few different strategies, the blog is even more attractive to investors, since their risk is reduced. Multiple monetization strategies give you more power during the negotiation process, so keep that in mind.
What most bloggers tend to overlook is that the quality of their domain name can also play a huge role during the negotiation process.
In general, a weaker domain is going to be harder to grow and harder to brand, while a memorable domain name is easier to brand, which makes your investor’s life easier.
Places You Can Sell Your Blog
If you’ve figured out the value in your blog and have decided to sell it, there are a few different ways you can approach the process. Depending on how involved you want to be in the process, and what the blog is worth on the open market, one strategy may be better than another.
Listing The Blog On Flippa
Whether you want to buy a blog to build or sell your blog to an investor, Flippa can help you get the deal done quickly. They currently have one of the largest marketplaces of live blogs and websites, along with thousands of investors that visit daily, looking for a deal.
While Flippa is a great way to get the deal done quickly, it’s exactly that — a deal. Investors on Flippa are looking to get the absolute lowest price possible, and there is currently no vetting in place, which means the number of scams on Flippa are huge.
Anyone can create an account and list a website or blog for sale on Flippa, and you’re going to be on your own to figure out how much your blog is worth. You’ll also be required to open the doors and display, what could be, sensitive information, like your traffic stats, how the blog is monetized, and how much it earns.
Selling The Blog Through A Broker
When it comes to finding out what your website is worth and getting maximum value for your blog, working with a broker is going to give you the best of both worlds — maximum value with little to no work.
Brokers have a list of investors that are always on the lookout for new, profitable blogs and websites, and are prepared to pay what the blog is actually worth. They spend a large amount of time vetting both buyers and sellers and help you through the entire process.
Brokers also make sure that each sale is legitimate on both sides, so you can rest assured that you’re not going to find yourself dealing with a scammer.
Finding An Investor Yourself
The third option that you have is to locate an investor yourself. You can either reach out to your competition and let them know about your intentions to sell, or you can respond to one of the offers that are making their way into your email inbox.
If you decide to work privately with an investor, you’re going to need to understand how to navigate through the negotiation process to ensure you’re going to get a good deal, and the highest value you can possibly get.
There are many smart investors, and with larger deals, especially, they’re going to be looking to negotiate you down as much as possible. If you know your blog’s value, stick to your guns, and show the investor that value so you can justify your asking price.
How To Figure Out The Value Of Your Blog
While there may be online tools that you can use to figure out how much your blog is worth, they can be far from reliable, and shouldn’t necessarily be used. If you’re going to use these tools, you should expect to get wildly varying results, which shows exactly how imprecise they can be.
Most of these tools rely on a blog’s Alexa ranking to figure out how much they’re worth, which is not the same metric that investors are going to be looking at when they’re ready to submit an offer.
The actual value of your blog is typically going to be a multiple of the blog’s monthly revenue, with the multiple ranging anywhere from 10 times up to 36 times the monthly revenues.
That means investors are going to be looking to see a return on their investment between 10 months to 3 years.
Knowing this, you’re going to want to keep in mind that the basing the calculation on your monthly net profits will only withstand due diligence if all of the other factors are in place, as well. Factors like your blog’s design, how much content you have, how much traffic and where that traffic is coming from, and, ultimately, how much money the blog is earning.
Older, more established blogs with a history of earnings are going to be more valuable to investors. A blog’s age will have a big impact on the price that an investor is willing to offer, so you should expect to adjust the price based on how old the blog is and how stable the earnings are.
Navigating Potential Legal Issues
Before you get into any deal, you’re going to need to take heed.
You want to ensure that you are 100% positive you are ready to sell your blog. Getting “seller’s remorse” after you have let an investor take the blog over is real, especially if you’ve devoted a large amount of time toward growing the blog to the point that it’s gotten to today.
If you decide you want to sell, stick to that decision and follow through. Remind yourself why you sold the blog after the deal is done if you feel that remorse creeping in.
Now, onto the potential legal issues.
First, if you are working with an investor from another country, make sure that there aren’t any legal issues that could keep you from transferring ownership of the blog to your investor.
Some countries have strict policies on banning investors from owning foreign companies without having a local director. Going further, some niches and industries could be heavily regulated, making them illegal for investors in that country to own.
Sex-related blogs and gambling blogs are perfect examples of blogs that could be difficult to transfer to an investor in a country where blogs of this type are banned.
Another issue you could encounter is when you attempt to transfer the blog and other assets to your investor.
A good example of this is the stock photos that you have used, that could have been purchased using someone else’s name. Transferring these assets will require documentation that you own the rights to them before your investor can successfully transition into ownership of the blog.
Transferring the business and ownership of the domain name will need to be taken care of. You could be responsible for unforeseen tax implications due to selling the blog, even though you no longer own the blog or receive income from it.
You’ll keep to keep track of all of the revenues generated in case the transfer doesn’t go forward, and the deal has taken a few months to get to the point where you figure out it has fallen through.
Examples Of Blogs That Have Sold Successfully
When it comes to selling a blog, there really are no established patterns that you can follow.
Stories about successful blog flips differ from one to the next.
For example, one blog, Figuide.com, had very little money and time invested into the blog, and the owner managed the entire project to keep it lean and highly profitable. He didn’t even list the blog for sale on a marketplace and decided to sell it to his business partner, obtaining the first price he put on the table.
Another interesting example is Arseblog. This blog was estimated to have around $13,000 in daily revenue and sold for $5,000,000 to an investment company named Ola Ola. What’s interesting about this deal is that the blog was only one year old. It was built in 2006 and sold in 2007. Talk about a nice return for a year’s work.
In some cases, waiting to sell the blog paid off huge. For instance, Conde Nast Publications acquired Ars Technica for $25,000,000 in 2008. The blog was only 10 years old, and the owner held out those entire 10 years while looking for the perfect opportunity to sell it to the right investor.
As you can see, there really are no hard-cut, set-in-stone rules when it comes to selling your blog. You want to keep your eyes peeled for the perfect opportunity to sell and make sure that you are not rushing into the process.
Keep the necessary paperwork handy and organized, so when you finally decide it’s time to sell, you are prepared and can capitalize on opportunities that come across your desk.
Hopefully, this has helped shed some light on exactly what’s possible if and when you decide to sell your blog.
The process of getting the blog sold, especially for those coveted 5-figure and 6-figure paydays isn’t necessarily something that can happen overnight.
It requires you to invest both money and time, and if your goal is to eventually cash out, make sure your legal bases are covered before you proceed. This will help ensure that the process moves forward smoothly and that you aren’t going to be hustling around at the last minute, trying to get the deal done.
Author bio: Jock Purtle is a successful entrepreneur and business broker. He has worked with numerous bloggers and websites owners to buy and sell websites, always ensuring maximum value. You can learn more about Jock at DigitalExits.com.