Selling and Buying Digital Companies
Digital companies that are available on online marketplaces have a broad range of ideas that can be suitable for any target audience. Some are sold for a very low price, whereas others have the same value as physical property. However, it is all narrowed down to what is offered in the price packages, such as the trademarks, ecommerce storefronts, and social media tools. Some packages offer more than others since they are already well-known, established companies that have generated a huge online market.
Most ecommerce websites on sale are strictly confidential. However, some highlight that drop shipping is available on the website, whereas others mention that the website can generate income through subscriptions, AdSense, or online sales. There are different niches available for buyers who are interested online.
Six-Figure Website Prices
Website marketplaces such as Flippa have confidential websites being sold at a $600,000 tier, a $400,000 tier, and a $300,000 tier — prices that put these websites at the higher end of the selling spectrum. Websites that are being sold at $600,000 have monthly income listings of over $17,000. Most of the website platforms are on WordPress and have been running for about three years.
As for the $400,000 tier, an example of a confidential website can be one that specializes in “strong advertising and affiliate revenue from health & beauty product reviews.” They have listed as a monthly income to be $16,000 and more, with the website running for two years on the platform Genesis Framework.
To get an idea of what kind of maintenance these websites require, the seller wrote the following in the description: “The asset currently has no employees on its payroll; the Seller manages all day-to-day and weekly tasks revolving around responding to customer queries, managing PPC campaigns, and monitoring sales and inventory.”
Online marketplaces such as Empire Flippers offer websites for affordable prices but still list some higher prices. An automotive niche site on the marketplace going for $485,738 has been running for three years as an ecommerce business with Fulfillment By Amazon (FBA). The official listing for the monthly revenue is over $120,000, and the monthly net profit is over $15,000.
However, the highest price found on the marketplace is $11,883,060 for a personal care bed and bath website. Again, it is an ecommerce business with FBA that has been running for four years. It has monthly revenue of $1,208,482 and a net profit of $282,930. According to the website, “The Seller spends about 4 hours per day on the business, usually on brand strategy, networking, managing VAs, communication with suppliers, and any other tasks that arise.”
Given that most companies have permanently changed the working environment from corporate office settings to home office settings, it’s no surprise that we have stepped into a digital age that we can’t turn back on. That’s why digital companies are being sold for such a high price that can be equivalent to a car or a house, because of the huge revenue the websites can bring online.
With proper management, this can change the circumstances for budding online entrepreneurs and possibly give jobs to ambitious people that want to have an already developed business that they can take over.
About the Author
Mariliana has an MSC in consumer analytics and business strategy. She has a special interest in fast-moving industries and big data.