Summary: Selling a website is a way to realise all your income in one go, or to take advantage when someone else could monetise your website better than you can.
The obvious question to ask at this point is why would you sell a website? The obvious answer to this question is that, as with anything else, you should sell your website when it will be more valuable to someone else than it is to you. This often comes down to a simple question of your circumstances. For example, if your website is making £20 a month but you need £500 urgently to repair your car, selling your website for £500 is better for you at that specific point in time. However, if you are not in this situation, the main reason for selling your website is that someone else will be able to make more money from it on an ongoing basis than you can. For example, YouTube is one of the most successful and most visited websites in the world; however with all video content being free to visitors it did not make much money. As such, the company was bought out by Google, which is an expert at making money from website visitors.
As such, if someone approaches you looking to buy one of your websites, your should consider how much the website is worth to you in terms of monthly income, and how much it will be worth to them. As a general rule of thumb, a website is worth up to 30 times its monthly income from advertising and other sources. So use this to work out if you’re getting a good deal, and if the seller may be trying to rip you off. Similarly, if you want to sell your website, set a price around this level, maybe a little higher if you think buyers will be able to make more money than you did. Another way to make money from selling a website is by buying websites that are badly managed, and hence making less money than they can, then increasing the level of money that they make and selling them on. This requires you to be able to find badly performing websites, buy them cheaply, and quickly turn them around and sell them on at a healthy profit. However, like flipping property, this can be a risky strategy if you fail to improve the site.
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