One of the very first questions that a website owner asks when they begin the process of looking to sell their website is: How much does a website broker cost? or the kind of price they are going to charge to sell my website. Unfortunately because it is such a specific field there is not that much information out there. This article is going to attempt to answer that question.
Business and real estate origins
The general pricing structure of a website broker follows that of a traditional business broker. However I am going to highlight the general commission fee structures of brokers that you may be more familiar with:
- Real estate agent (realtor) – 6% commission
- Business brokers – 10-15%
- Investment bank – normally 40k-100k upfront + monthly retainer of around $5,000-$10,000 then a 5% success fee (however they normally only deal with business worth over $10 million)
A website broker’s commission can be anywhere from 6% – 15% depending on which broker you use and how much you are selling your website for. Most fall in the 10% for website brokers, but there are some who charge more or less. Typically smaller sites attract a larger % and larger sites attract a smaller percentage.
The quality of service varies greatly. Be very careful about which broker you hire. Having been dealing with brokers (both online and offline) for more than 10 years, unfortunately, most are lazy, uncreative.
What value do they provide:
If you are reading this you have already asked the question about cost, however what you are really asking is am I going to get value for money if I engage a website brokers services. The value they provide may be answered by asking yourself these questions.
- What are your own skills?
- Would you do your own appendectomy?
- How much time d you have to do what a Broker could do for you?
- Do you have the networking capabilities to get the business sold at its maximum price?
- Can you help the Buyer with financing? Is your pricing where it ought to be?
- How are you going to field and answer inquiries in a confidential manner?
At the end of the day the main job of a website broker is to market and present buyers with good information about your company. In the end it is up to the buyer and seller to make a deal. If you list with a broker they will bring you qualified pre-screened buyers.
- Create a selling document – to present information about your company
- Present your business to potential buyers
- Screen and qualify those buyers
- More money – good brokers