Are you tired of dreaming about owning your own online business, but the thought of starting from scratch feels like trying to build a spaceship with a spoon? Here's an unusual idea. There's a shortcut to realizing your dreams: buying an existing online business.
That way, you skip the grueling hike up Mount Everest and take a chopper straight to the summit. Stay tuned to uncover why snagging an existing online venture might just be your golden ticket to entrepreneurial glory.
Why buy an existing online business?
Buying an existing online business can have many advantages over building one from the ground up.
Existing reputation
When you buy an online business, you inherit its brand, a bunch of loyal customers, social media clout, and a stack of raving reviews – all without lifting a finger.
Instead of struggling to build trust and credibility from scratch, you get to ride the wave of the business's existing reputation. You can leverage this reputation to attract even more attention, sales, and referrals.
Future potential
The business you buy often has room to grow and improve, allowing you to leverage your skills and resources to take them to new heights. Check out market trends, listen to what customers are saying, and find out what your competitors are up to. This way, you can figure out ways to rake in more cash and fatten up those profit margins.
Financials
Buying an online business also lets you peek at its financial track record and how well it's been doing. You can see how much revenue, profit, and expenses the business generates and how it stacks up against similar players in the game. This insight is key for figuring out if the business is a solid investment and how much you are willing to pay for it.
Passive income
Many online businesses are set up to run themselves with hardly any work or supervision needed, basically. So, you can make money from the business without having to spend all your time on it. Plus, you can get other people or tools to handle things like marketing, talking to customers, or making content for you.
Existing Staff and Structure
When you scoop up a business, you might get to keep the awesome folks already working there! These pros are already dialed in, with skills honed and experience on tap. So, instead of starting from scratch, you can slide into the driver's seat with a team that knows the ropes and has a ready-made structure in place.
What should you look for when buying an online business?
Before you dive headfirst into buying an online business, let's chat about how to do it right. Here's your game plan:
Check out the Traffic and Revenue
Think of it as peeking under the hood. Use tools like Google Analytics, Shopify, or Amazon to snoop around and see what kind of traffic, sales, and monthly revenue this business is pulling in. Don't be shy to ask the seller for screenshots or reports to back up those numbers. You want the real deal, after all!
Analyze the Niche and Competition
Time to do a bit of detective work. Figure out if this business is swimming in a hot market or stuck in a backwater. Check out the competition to see who's making waves and who's just treading water. Knowing the lay of the land can give you a serious edge.
Size up the assets and liabilities of the business
What goodies are you getting with this business? From domain names to social media accounts, inventory to email lists – take stock of it all. But don't forget the not-so-fun stuff, either, like debts, taxes, or legal headaches. You are better off knowing what you're getting into.
Negotiate the price and terms of the deal.
Figure out what the business is worth and how much you're willing to cough up for it. There are all sorts of fancy methods to value a business, such as the multiple of net profit, the discounted cash flow, or the asset-based approach. But in the end, it's all about what makes sense for you. And don't forget to hash out the finer details, from how you're paying to who's sticking around to help you with the transition.
5 Best Marketplaces to Buy and Sell Online Business in 2024
If you're itching to dive into the wild world of buying or selling online businesses, you need the right marketplace to make the magic happen. Here are some of the best marketplaces to buy and sell online business in 2024:
1. Quiet Light Brokerage
Quiet Light Brokerage specializes in facilitating the buying and selling of various types of online businesses, such as e-commerce, SaaS companies, and content sites. It is used by entrepreneurs seeking to sell their online ventures or interested buyers looking for lucrative opportunities. The platform boasts a network of experienced business brokers and qualified buyers to assist throughout the deal process.
Ideal for serious online business buyers and sellers, Quiet Light Brokerage emphasizes quality, transparency, and support. It maintains stringent criteria for listing sites, typically above six figures, ensuring the legitimacy of the businesses. The platform offers comprehensive services ranging from valuation to post-sale support.
Businesses sold through Quiet Light Brokerage span a wide spectrum, with most listings priced above $250,000. Leveraging data from its extensive deal history, the platform determines optimal multiples and sales prices for the businesses it represents.
2. Empire Flippers
Empire Flippers operates as an online marketplace for trading profitable online businesses. It caters to a diverse community of buyers and sellers, covering e-commerce, content sites, lead generation, SaaS, and Amazon FBA ventures. Primarily, Empire Flippers serves individuals seeking to buy or sell established, profitable, and scalable online businesses. It's not the go-to platform for those interested in starter sites, low-quality ventures, or businesses requiring extensive maintenance.
Empire Flippers streamlines the buying and selling process with services such as business valuation, vetting, listing, marketing, negotiation, and migration. Buyers are required to pay a refundable 5% deposit upfront before gaining access to vital website data. Sellers incur a tiered commission fee ranging from 2.5% to 15% of the final sales price. Also, Empire Flippers extends post-sale support along with a 14-day inspection period to ensure a smooth transition for all parties involved.
3. Flippa
Flippa, founded in 2009, is an online marketplace for buying and selling online businesses. With over 300,000 transactions to its credit, it caters to a diverse clientele, including individuals, companies, private equity firms, venture capitalists, and family offices. The platform accommodates both newcomers and seasoned investors, offering opportunities ranging from a few hundred dollars to over $10 million.
Operating as an open platform, Flippa generally doesn't pre-vet listings, enabling direct deals between buyers and sellers. However, it provides optional paid services like M&A advisory, due diligence support, and in-platform teams to facilitate the sales process.
Assets available on Flippa span websites, mobile apps, and domain names, with websites comprising the majority and covering diverse categories like affiliate marketing, e-commerce, and Amazon FBA. The platform charges listing fees, starting at $49, along with success fees, starting at 10% of the sale price, and decreases as the price rises.
4. FE International
FE International allows people to buy and sell online businesses like content websites, ecommerce stores, and SaaS businesses. It's popular among those seeking mid-market deals, usually valued at six figures or more. The platform boasts a wide network of trusted buyers interested in acquiring profitable online ventures.
FE International is particularly beneficial for sellers aiming to fetch the best price for their business and buyers looking for reliable, vetted online opportunities. FE International is praised for its supportive guidance throughout the buying and selling journey.
To sell on the platform, sellers start with assessment and evaluation, followed by marketing and negotiation, then migration and transfer, and finally, completion and payout. Buyers, on the other hand, begin by browsing and making inquiries, proceeding to due diligence and making an offer, then migration and inspection, and finally, completion and handover. FE International manages the technical, legal, and financial aspects of each transaction, utilizing Escrow.com for secure payments.
5. MicroAcquire
MicroAcquire is a platform where people can buy and sell established businesses without paying any commission fees for sellers. Buyers, however, need to pay an annual fee – $390 for the Premium plan and $780 for Platinum, to access deals.
MicroAcquire is used by experienced buyers and sellers who want to avoid brokerage fees and have more control over the negotiation and migration process. It's best for established businesses that are profitable, scalable, and have clear growth potential, such as SaaS, e-commerce, app development, and content sites.
While MicroAcquire mainly focuses on tech startups, it covers a broad range of businesses. The types and number of businesses listed can vary depending on who is looking to sell at any given time.
Conclusion
If you're eager to dive into the realm of online business ownership, buying an existing business can be a game-changer. With established reputations, growth potential, and existing structures in place, these businesses can give you a head start on your entrepreneurial journey. However, navigating the buying process requires careful consideration of factors like traffic, revenue, niche competition, and financials.
Fortunately, in 2024, there's a plethora of top-notch marketplaces catering to buyers and sellers alike. From Quiet Light Brokerage and Empire Flippers to Flippa and FE International, each platform offers unique advantages and a diverse array of online businesses to choose from. Whether you're eyeing e-commerce, SaaS, content sites, or Shopify stores, these marketplaces provide the tools and support needed to make your entrepreneurial dreams a reality.
FAQs
What is the best platform to sell online small business?
The best platform to sell an online small business typically depends on the nature of your business and your target market. Popular platforms include Quiet Light Brokerage, Flippa, and Empire Flippers .
Is buying an existing online business a good idea?
Buying an existing online business can be a good idea if you find a profitable and well-established business that aligns with your goals and expertise.
Is buying online business profitable?
Buying an online business can be profitable if you choose the right opportunity. The selling price of online businesses varies widely based on factors such as revenue, profit, growth potential, and industry.
Where can I find internet businesses for sale?
You can find internet businesses for sale on online marketplaces like Flippa, Empire Flippers , MicroAcquire, and websites dedicated to buying and selling online businesses.