Ever Thought of Selling Your Website? Why 2012 Is the Year to Sell

We've all heard the amazing stories of some lucky youth who started a website, found instant success, and later sold the site to a large conglomorate for untold millions (does anyone remember the story of Youtube? $0 - $1.65 billion in under 2 years).  While most of us may admit to having the occasional dream of such success, we largely live the reality that life online is still a struggle, that it still requires hard work, and most of all, that our expectations need to live in reality.  Despite that, have you considered whether or not your website has any value?

Real Sites are Selling
As the owner of Quiet Light Brokerage, I know that real sites are selling, and they are selling for some healthy amounts of cash as well.  These are sites that are owned by average individuals who have done a good job of getting a foundation under their businesses, but maybe have grown tired of their current project, or maybe they've decided to pursue a new project, or maybe they are just interested in cashing out on their hard work.  Regardless of their reasons, their sites are selling.

Here are a few examples of sites that we have sold recently:

• Web Directory.  Asking Price: $660,000 (SOLD).  This site is a simple web directory that made solid passive income.  We placed this online business up for sale, had an offer within a few weeks, and closed the sale within four more weeks.
• Paid Survey Review Site. Asking Price: $525,000 (SOLD). This was another simple site that was owned by an individual who had a full time job.  The business made good affliate income, but couldn't grow due to the owner's committment to his "real" job.  We listed the business and had it closed in roughly 5 weeks.
• Vitamins Website.  Asking Price: $199,000 (SOLD).  This was an e-commerce site that was also owned by an individual with a full time job.  We were able to find a buyer for this business and get the transaction closed quickly.

Why 2012 Is the Year to Sell
Despite the successes of 2011, 2012 promises to be a great year for anyone who wants to sell their Internet business or websites.  There are two driving factors that make 2012 a great year to sell:

1. Buyer's are already showing signs of increased activity this year
2. It will cost less to sell your business this year than next year.

Buyer Activity
It is no secret that 2011 was a difficult year for the economy.  Unemployement rates remained high, the stock market displayed high levels of volatility, property values continued to decline, and investors sought out safe refuges for their investments.  2012 has  only just begun and it is too early to tell if it will be a better year than 2011, but early indications are good. Unemployment is down, stocks are more stable, and property values are not declining as quickly as they were last year.  Most importantly, though, buyers are being more aggressive this year than last year.  This is great news for anyone looking to sell their online business.

2012 is Cheaper to Sell Your Business
When considering selling your business, you must always consider the cost of doing so.  Not only are their consulting fees to be paid, attorney fees, and possibly accounting fees, but there are also taxes.  In the end, taxes take the biggest chunk of money out of your sale.  In 2013, taxes will be increasing.  Here are two major tax changes which will affect your business:

• In 2013, long-term federal capital gains tax is scheduled to go up to 20% (it is currently 15%).  It is possible that the current 15% rate will be extended, however, it may only be extended for a portion of the population
• In 2013, a non-personal income tax of 3.8% will be applied to begin paying for the Affodable Health Care Act. This will apply to the sale of a business.
• There are other indirect taxes that will also be implemented (or previous tax breaks that will expire)

What this means for you is that selling your business could be much more expensive.  For example, if you sold your business for $250,000 in 2012, you would pay a total of $37,500 in capital gains tax (leaving you with $212,500).  In 2013, you will pay $50,000 in capital gains plus $9,500 in non-personal income tax for a total of $59,500.  This would leave you with $190,500 - that's $22,000 more in tax expenses!

Explore Your Options for Selling Your Online Business Today
2012 has only just begun, but the year is short and selling a business, online or otherwise, takes time.  Take the time today to speak with a professional Internet business broker to find out how you should get prepared, when you should go to the marketplace, and what you should expect.  You do not have to sell your business in 2012, but if selling is in your plans at all for the future, now is the time to consider your options.

Get a free consultation and valuation of your website today.

About Quiet Light Brokerage
Quiet Light Brokerage has been helping website owners valuate, prepare, market, and sell their online businesses since 2007.  We have assisted in over 300 sales, have a network of thousands of buyers, and work only with Internet based businesses.  We sell websites.  Its all that we do, and we do it well.

Contact us today to learn more about us and about how we can help you.
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