Selling my blog for half a million dollars in 2013 was a pivotal moment in my entrepreneurial journey. When I started my blog back in 2007 as a side hobby, I never imagined it would one day sell for a life-changing amount of money.
Over the 6 years I spent building my blog into a profitable business, I learned critical lessons about blogging, business, and life. The process of actually selling taught me even more.
I made mistakes along the way (including leaving money on the table). But each experience has made me wiser. Since that first sale, I‘ve gone on to sell other blogs for significant sums.
If you run a successful blog or plan to someday, I want to pass on what I wish I knew when I first started the process of selling my business. These lessons can save you time, maximize your payout, and smooth negotiations.
Why You Should Consider Selling Your Blog
Before diving into the lessons themselves, it helps to understand the value in selling a blog in the first place:
1. Blogs Are Businesses
A common misperception is that blogs are just online diaries or hobbies. But a profitable blog is a real business. It has tangible worth to investors, just like any moneymaking company.
As soon as your site starts generating consistent revenue through ads, affiliates, products or other offerings, it gains value.
2. You Can Cash Out Your Efforts
Selling allows you to reap financial rewards for all your hard work. Rather than earning small amounts of income indefinitely, you get a large lump sum payout.
You can use this windfall to retire early, pursue new projects, or simply secure your financial freedom.
3. There Is Strong Investor Interest
In today‘s economy, buying established websites is an increasingly popular asset class. Investors know running an existing profitable site takes less work than starting from scratch.
With some outreach and marketing on your end, you‘ll likely find multiple parties interested in acquiring your prized asset.
15 Key Lessons I Learned From Selling My Site
Now, onto the lessons that will help you maximize your payout and smoothly navigate the sales process:
1. Valuation Varies Wildly Between Buyers
Early on I assumed there was some standard formula to value blogs. I quickly found out your blog is worth whatever someone will pay.
Each potential buyer will assess worth differently. Valuation methods factor profit margins, growth, costs, risks and more. Expect a wide range in number crunching.
With multiple buyers, I‘d often get offers $100k+ apart! The key is finding the one buyer who sees the most potential value.
2. Monthly Profits Drive Price More Than Anything
While valuations vary, most buyers will primarily base offers on monthly profits. A standard multiple is 24-36x.
So if your blog earns $10k a month, expect offers around $240k – $360k.
Higher multiples go to sites with diversified income streams, strong growth, and minimal owner involvement.
Maximizing profits in the 1-2 years before you sell does more to boost valuation than anything else!
3. Build Diverse Income Streams
Relying on one income source is risky for you and the buyer. If Google changes algorithms, or Amazon cuts commissions, you could see revenues plummet overnight.
Aim to generate income from:
- Display ads
- Affiliate offers
- Selling own products
- Premium memberships
- Sponsored posts
Multiple streams reassure buyers that profits are sustainable long-term.
4. Track Detailed Analytics
Buyers will comb through traffic and financial data to validate your claims around profit and growth.
Make sure you track detailed analytics across:
- Google Analytics
- Ad networks
- Affiliate programs
- Payment processors
- Other sources
I used simple Excel spreadsheets to compile data. If records are disorganized or incomplete, it raises red flags.
5. Conservative Financial Projections Matter Too
Along with sharing historical data, buyers want to see modeled financial projections.
Craft 5-year profit and expense projections, factoring realistic growth and costs. I consult site brokers on realistic assumptions.
Keep projections conservative. It‘s better to under-promise and over-deliver later.
6. Prepare Operations Manuals In Advance
Buyers will expect a detailed walkthrough of how you run the site, especially processes bringing in income.
Prepare standard operating procedures manuals covering:
- Content production
- Keyword research
- Link building
- Affiliate optimization
- Ad management
- Product creation
- Analytics review
- Any other revenue operations
Having manuals ready shortens negotiations and quickly gets new owners up to speed. Just be sure not to hand over passwords or logins until money is in the bank!
7. Migrate Hosting and Domain Ahead of Time
During due diligence, buyers will want to comb through DNS records, hosting accounts, server logs and more.
To streamline this, I recommend:
- Transferring domain to own registrar account
- Setting up dedicated hosting for just the site (separate other sites you own)
- Documenting key details like registrar logins, DNS info, server IPs and more
Taking care of this ahead of time avoids hassles later.
8. Link Tracking and Attribution Matter Too
Make sure you properly track and attribute conversion values across channels. Where possible, implement:
- UTM campaign tags to measure impact of specific posts, links and marketing efforts
- Affiliate links with your ID coded for each partner
- Unique phone numbers by traffic source to attribute calls
- Individual email lists to measure open and click-through rates
- Campaign values assigned in analytics for different offers
With channel-specific data, buyers gain confidence revenues will remain consistent post-sale.
9. Outsource What You Can
Buyers are investing in the proven business model – not buying a job for themselves. They plan to outsource operations.
Show this is possible by outsourcing non-key tasks yourself, such as:
- Content writing
- Graphic design
- Podcast editing
- Link building
- Community management
Working with proven freelancers that new owners can leverage helps maximize valuation.
10. Sell Your Expertise Too
A blog sale isn’t just about the assets changing hands. Much of the value comes from your skills and expertise as founder.
Make it clear to buyers you will provide:
- Knowledge transfers: Agree to x hours explaining your strategies
- Staff introductions: Warm handoff key positions like writers
- Advice on request: Answer questions that come up
Clarify constraints around hours, duration and preferred communication channels.
Buyers seek reassurance that your expertise will ease the transition. Offering training and guidance typically translates to boosting your sales price.
11. Use Creative Deal Structuring If Needed
Ideally buyers pay 100% of the purchase price upfront upon closing. But for mid 6-figure+ deals, buyers may request creative payment terms if needed to finance the deal.
I’ve accepted deals where only 80% comes upfront, with the remainder divided over the next 6-12 months.
Other structures like seller financing or earn-outs tied to performance post-sale also encourage buyers to pay premium valuations.
Seek professional advice to ensure terms limit your risk. But know that flexibility on payments can really boost your sale price.
12. Lawyer Up
Selling your prized asset and multi-year investment is nerve-wracking. Having an experienced and competent attorney by your side is invaluable.
Contract language can make or break deals and protect your interests. For example, an attorney can cover bases on issues like:
- Transferring website ownership
- Outlining payment schedules
- Ensuring representations and warranties
- Guaranteeing confidentiality or non-competes
The cost for premium legal advice is a small price to pay for peace of mind. Lawyers experienced on Internet sales can navigate risks as they surface.
13. Tax Surprises Suck
Early on, I failed to plan for the tax bill that came with my windfall. Depending on your home country, you may face capital gains taxes eating up 20-30% of your payout.
That’s why I recommend speaking with a savvy accountant about ways to mitigate your obligations. Strategies like:
- Rolling proceeds into other businesses
- Spreading payments over multiple tax years
- Holding proceeds in certain trusts or investment vehicles
Plan ahead so you get to keep as much of that hard-earned cash as possible!
14. Take Time To Celebrate Your Wins
Selling a business you poured years of work into is an emotional rollercoaster. After the initial excitement, expect feelings of grief or loss to eventually surface too.
Make sure to celebrate your accomplishments along the journey:
- Look back proudly on how far you’ve come
- Recognize your blog positively impacted other’s lives
- Share war stories that still make you smile
- Toast to the future adventures ahead
Reflecting on the positives of your journey brings welcomed perspective.
15. Prepare Your Next Chapter
Finally, think through what’s next for you after deal celebrations wrap up. As your blog fades into the new owner‘s hands, how will you:
- Replace the income stream?
- Stay sharp without your daily grind?
- Find new meaning or impact?
Ideally you timed the sale so you have resources to last awhile. Experiment with passion projects or new businesses without immediately needing to replace every dollar lost.
Just know that after the dust settles, you’ll eventually want structure and challenges again. Think through what’s next so you can shift gears cleanly.
Now Go Crush Your Blog Sale!
If you made it this far, I hope these lessons better prepare you to one day sell your blog just as profitably as I did.
Remember blogs can become valuable businesses. With hard work, smart planning, and a bit of luck navigating buyers, you too can eventually cash out your efforts for a life-enhancing payday.
I wish you the best of luck maximizing your sale. Now get out there take all this and go crush it!
