, where entrepreneurs can buy and sell websites. Ultimately, they both settled on the Flippa platform. Regardless of the marketplace, online transactions usually work the same way.
Once you contact the seller you’ll want to — with your advisers — review the site’s business financials and tax returns, its customer base, and its website traffic statistics. You’ll want to interview the company’s employees and look at all key contracts and intellectual property agreements. You can use online tools to get a valuation and then discuss a purchase price with the owner.
As part of the deal, Bispels kept on the previous owner as an equity partner for his consulting value.Flippa’s Top 100 Index suggests that annually, on average, an online business is valued at more than two times its net profit and 1.7 times more than its revenue. But transactions can go even higher.