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When Less is More — Auctioning a Site in an Undiscovered Niche

In most cases, when you’re selling a website, you want to include a lot of data. Flippa’s sales statistics have already proven that more attachments = more $ for the seller, but there are some specific instances where it’s wise to hold back on some of this data, or to consider a completely different sales platform than Flippa and other large marketplaces.

If You Found a Gold Mine, You Wouldn’t Publish a Map to It

Frequently, when we sell websites, we’re really selling execution — good unique content, proper implementation of an SEO and link-building campaign, and conversion optimization.  Sites that get traffic and turn it into money.

For most of these sites, the market is well-known.  There’s no intellectual advantage owned by the site — it’s not in a brand new, untapped market.  It’s just been executed better than most of its competitors.

Sometimes, however, you find a keyword that’s basically untargeted organically.  It’s a profitable keyword (has advertiser competition if you’re an AdSense builder, or is a buying term in e-commerce sites), but you’re the only one who really knows it.  How you handle that situation is completely different from “regular” websites.

In those instances, it’s important to play it “close to the vest.”  The last thing you want to do as a seller is publicize your untapped niche, inviting lots of competition for yourself.

How to Make a Sale without Setting Off Alarms

If you have one of these sites and you’re looking to sell it, your best bet is to try to move it privately, if possible.  If you’ve been buying and selling sites regularly, you’ll have a list of potential buyers that you’ve already vetted in the past — this is a great place to start.

Since you’ve already bought or sold with these people before, there should be some degree of trust to begin with.  This will allow you to withhold certain information (namely the niche or keyword), and instead disclose general financial information (and perhaps the general industry and monetization approach of the site).

Where to Find Better Buyers

If you don’t have a list of potential buyers, I strongly recommend checking out the forum at Experienced People.  If you post there and prove yourself to be a valuable contributor, you’ll have access to their private forum.  There are a lot of great people who frequent this board, and they are the types who would be more likely to understand (and appreciate) this approach.  You have to remember that the seller’s discretion in a situation like this is also advantageous to the buyer, who doesn’t want to see the competitive landscape for the site change unfavorably.

About Eppie Vojt

Eppie Vojt is a Pennsylvania-based web developer who's passionate about online marketing. Whether it's developing a brand, mocking up a design, coding it out, creating traffic, or monetizing a site, Eppie's right at home.

This entry was posted in Selling Websites.

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  • http://www.facebook.com/esuwito Eddy Suwito

    Helo there i’m going to selling my webiste(baby) iphone blog please contact me monthly visitor $6k rev $575 this month.

  • Clinton

    Thanks for the mention of experienced-people, eppie, and thanks for the very insightful post.

    The type of web business that is suitable to the Flippa style of full disclosure is one in which there is a high barrier to entry, where the key assets of the site aren’t easily replicated and where disclosures don’t harm the site operation or profitability. For those businesses Flippa is a great option from the point of view of public bidding competition pushing the price up.

    For all others I would recommend going to a business broker or a business listing site such as businessesforsale.com (or our forum of course :) ). To grab the interest of buyers you’d still need to disclose information, but the good news is that it’s not to the granularity you’d provide in Flippa where your site is exposed to copycat risks. In these locations it’s standard to provide just the T/O, profit/cashflow and asking price with a brief description of the business. Further, with the business listing sites you don’t even need to provide the domain name till you’ve received a signed NDA.

    Getting an NDA is, of course, no guarantee that someone won’t set up a competing site, but it certainly cuts down significantly on the chancers.

    If I may add a note about our forums: While new members do not have access to the VIP Lounge, I’d be delighted to post their sale for them if they have an established property generating at least a four figure monthly net profit. As with everything else on the forums, there is no charge. They’d need to send me a PM/email (webmaster @ that domain) and specify whether they want a public or private listing. Private listings would go in the VIP Lounge and would be blocked from the search engines i.e. visible to qualifying members of our forums only.

  • Jadyt

    I checked out http://www.huluauction.com and it is not bad. It was easy to use and simple enough for anyone wanting to buy and sell anything website related stuff for free. I find that their categories are pretty straightforward and doesn’t dive deep into unlike other auction sites. One plus point for that.