Jock Purtle, Founder of DigitalExits, helps people find the perfect buyer when they want to sell their online assets.
He uses his existing network and unique outreach strategy to get in front of the right investor to buy your business.
If you’re thinking about selling your website, here’s exactly what you need to know.
Ideas are cheap.
Every man and his dog has an amazing idea for something. But it’s only the people that get moving on those ideas and turn them into a profitable business that prosper.
Jock Purtle gets asked all the time, why there isn’t extra value for a prospects domain, traffic and email list?
The simple answer is this – there is no extra value.
The sum of all your assets does not add up to total value. Value is derived from the profit that those assets generate.
That said, Jock feels that selling your business and having a million dollars in the bank is plain stupid unless you have a plan for it.
The man has a point…
If you don’t have an asset that is appreciating at the same or greater rate than the asset you are selling (where an asset is defined as something that makes you money, could be a property, a business etc.) then it may not be the right time to sell.
Quick Fire Questions
Best Business Purchase?
The Best Thing I Did For My Business
Networking and contacts.
How I Make Money
I offer services because If you can provide massive value to people you can charge a large price.
This is specifically related to consulting as information is one of the most valuable resources.
A Productive Day In My Life
The Day I Realized I Made It
Honestly, I don’t think I will ever have an “I made it moment.”
I Would Have Become Successful Sooner If…
I don’t regret any actions I have made, they were made for a reason and I don’t think I would be here today if I’d change the timing.
How To Value A Website
A websites value is determined by the net profit that it produces. Often times, people will pay a multiple of net profit between 1.5 and 3.5 times.
So for example if your business makes $200,000 in net profit per year and the buyer pays a 3X multiple then your business is worth $600,000 per year.
Check out my ultimate website valuation guide here.
There are a variety of factors that go into determining what the multiple someone is likely to pay. You should talk to a website broker about what multiple your business will likely get when selling.
Buy A Business Instead Of Starting From Scratch
The main benefits from buying a business are as follows:
Buy time – With any business there is a certain period of time that is required for you to get the ball rolling, start acquiring sales and customers. If you look at it through a return on investment if you bought a company, would you be at the same place in 1 years time if you started a company from scratch versus buying one?
Increase market share – If you have a long term vision for your market then you should be considering acquiring your competitors to increase your market share. This is a classic strategy of larger corporate companies .
Gain staff – If you can’t get them to join your company, then buy the company. This is a classic strategy of some of the larger tech companies.
With a shortage of good talent sometimes it is easier to buy a company for the team then to try and poach the team members.
Eliminate competition – When you buy up your competitor there is one less company that you are going to have to compete with in the market place.
Increase profits – The easiest way to quantum leap your business and skyrocket your profits is by acquiring a company.
How I Meet New Contracts
- Content – people look online, read my content and get in contact with me
- Masterminds – These are some of the best and highest level contacts you can produce
- Linked-in – I generally target groups that have my target customers
- Referrals – I am a big networker and like to connect with lots of people, this is generally reciprocated with people that I know
How I Get More Traffic
The highest converting traffic source for me in terms of % conversion rate is a targeted Adwords campaign.
That’s a campaign that has been optimized for conversions. I have seen up to 30-40% conversion rates for very targeted keywords.
What YOU Should Be Focusing On
I’d say you should ALWAYS be focusing on selling and marketing.
How do you get more clients?
That is the number one thing you should be addressing every day in your business.
Why I’m Successful And You May Not Be
Time, persistence and contacts.