What are the fees to sell on Investors Club?
Investors Club charges a seller 5% of the final sale price. Most other brokers and platforms charge upwards of 15%. We've created a different business model so it’s much cheaper for you to sell through Investors Club.
Is there a vetting/listing fee?
Not anymore. We previously had a vetting fee of $99. But we have now removed this for sellers. Furthermore, if we don’t sell your site after the 45-day period, and you want to remove it from our platform, we’ll reimburse you with a $100 Amazon gift card. Having a vested interest on our platform helps us keep sellers engaged with the process.
How much can I get for my website?
There are many factors that influence a website's value. Generally, we look at the last six to twelve months of revenue history. We'll take the average net revenue number and multiply it by a determined multiple to arrive at the best price for the website. This multiple is normally somewhere between 25-35x, but may be anywhere from 20-50x. The multiple depends on a variety of things. These include:
- site age
- stability (traffic, revenue)
- monetization methods
- content and backlink quality
We also take into account that all revenue generated is on an accrual basis. For example, if your payment terms with an affiliate network is Net 30 days, and you achieved $1,000 in commission during the month of May, that will be recorded as earnings for the month of May despite the fact that you will receive it at the end of June.
We also do not include discretionary expenses such as content creation or link building.
What if I want to ask more than the valuation you provide for my site?
Investors Club has a very complex and proprietary system for evaluating the objective worth of a website. We allow sellers to ask upwards of 5% more than our valuation, but the listing will still show our original valuation.
What things could I do to make my site worth more - or sell faster?
There are many things you can do to improve the valuation of your site. Some examples are: diversifying traffic sources, adding multiple monetization methods, doing CRO to maximize the value per visitor, build an email list, etc. One of the most important things is to sell on an upswing, (when all the trends are looking good) as opposed to selling when the site is on a major decline.
To sell your site faster, we recommend answering all the questions in the 'Sell Your Website' form in as much detail as possible. Try to avoid 1-2 word answers and elaborate whenever you can. Investors like detail, and you'll get a lot more interest if you invest some time and effort into your listing.
Are buyers able to negotiate? Can they offer prices lower or higher prices than the listed price?
Yes. The buyers will, more often than not, try to negotiate with you. On occasion, you might receive a higher offer if the investor has a strategic interest and wants to close the deal quickly.
How certain are you that my site will sell?
Investors Club is an exclusive club that only accepts investors who have ready funds and are actively looking to purchase a business. This means that, if your site gets onto the platform, there's a good chance that it's a great fit for our investors. Given that situation, there's a very high probability that your site will sell quickly.
How long does it take the average site to sell?
This is very hard to say because it varies from business to business. Online businesses that are worth below $100,000 tend to sell within a couple of weeks.
Businesses that are worth more than $100,000 can take a bit longer, but not necessarily. We sold a business that was worth $250,000 in only three days - so there are no rules.
That's the reason we ask for a 45-day exclusivity period in which to list and sell your business. We'll be in a position to tell you more about the potential time frames after we get all the details from you.
What happens if my site doesn't sell?
The reason we ask for a 45-day exclusivity agreement to list and sell your business is that we're usually able to close the deal within that time frame. If your site isn't sold after 45 days, you may choose to keep it with us or list it elsewhere. If your site doesn’t sell and you decide to delist it, we will give you a $100 Amazon gift card for your time.
What kind of information do I need to provide for you to sell my site, and what information is shown to buyers?
We ask all our sellers to confirm their identity by providing a clear picture of their ID or passport. We'll also ask you to verify the domain ownership, affiliate account ownership, and revenue that you claim the website is generating. Amazon sites need to provide sales data.
The buyers will see that your identity, domain, and affiliate account ownership have been confirmed (we won't show them the actual documents). They'll see the website's traffic and revenue numbers, plus our detailed due diligence reports. The buyers also see our objective analysis of your site. Some things will be good and some will be bad, but our business model is one of complete transparency. This gives our buyers the confidence to move ahead.
What will you do with my personal information after the site sells or is no longer for sale?
We'll keep your details on file in case you decide to list another business on the marketplace. We will not use them in any marketing activities, and your details will never be shared with a third-party.
When my site sells, how does the transfer process work?
Investors Club now offers an internal migration service for every single deal that happens through our platform.
If you decide to use a third-party service such as Escrow.com, the funds will be reimbursed based on the deal structure between you and the buyer.
Here's a brief outline of a typical transaction:
- The buyer places an offer, and the seller accepts
- Our team will immediately draft an Asset Purchase Agreement with all the details, and which both parties are required to sign
- We send the wire instructions to the buyer and put everything on hold until the funds land in Escrow
- Once the money lands in Escrow, we'll start with the technical transition (domain, site's files, hosting, affiliate IDs, etc.). When everything is transferred to the buyer, the inspection period begins. The inspection period is 14 days.During this time, we monitor the earnings to ensure they are within 70% of what the average revenue was when the site was valued.
- After the inspection period - and if everything is within the acceptable range - we'll wire the money to the seller and officially close the deal
- Both parties receive a Bill of Sale, and the transaction will be marked as 'completed.'
What kind of support is needed and what questions will I receive after I sell my site?
That depends on the deal structure between the parties. Generally, we request that at least 30 days of support is provided by the seller. Some investors aren't tech-savvy, so you might have to answer a couple of basic questions. However, most of the Q&A will be handled by Investors Club. All of this is clarified in the Asset Purchase Agreement.
Can I attempt to sell through other brokers as well as Investors club?
Unfortunately, not. We ask for a three-month exclusivity agreement because we invest a lot of time, effort, and resources into your listing. We need sufficient time to ensure that all the details are presented to the perfect investor. Sometimes investors will complete their own due diligence so this has the potential to prolong the sales cycle.