This is a guest contribution by Roo Wright. If you would like to submit a contribution please contact Bill Beatty for submission details. Thank you.
There may come a time when you want to move on from your affiliate business. You have taken it as far as you can, and you don’t have anything else to give.
Selling any business is full of twists and turns. You will be faced with many key decisions along the way, all of which will impact the final outcome. By making all the right choices, you increase the chance of two things happening:
• Selling your affiliate business sooner rather than later.
• Selling your affiliate business for as much money as possible.
When you reach both these goals, you can look back at the process and realise that everything went as planned.
Take these Five Steps
While there is no way of knowing what will happen as you set out to sell your affiliate business, there are still some basic steps you can take to improve your chance of success.
1. Choose the Right Time
This has a lot to do with how you currently feel about your business. Are you burnt out? Are you ready for a change? Are you looking forward to a fresh opportunity?
If you answered yes to these questions, it’s probably best to sell your affiliate business in the near future.
Conversely, if you are considering this idea but are still on the fence, it may be best to take a step back and reassess your situation in the near future.
2. Reach Out to Your Network
One of the most difficult parts of selling an affiliate business is finding a buyer. You know that your business has a lot to offer, but that doesn’t mean that others will see the value.
Get started by reaching out to your network to let them know of your plans. You may find that a regular contact is willing to purchase your business. If not, your network can pass your information along to others, ensuring that you reach as many potential buyers as possible.
3. Consider a Broker
Many people believe that a business broker is only for traditional companies, however, nothing could be further from the truth.
Remember this: affiliate marketing is bigger than ever before. This means that there are thousands upon thousands of people interested in selling their business. Subsequently, brokers are more than willing to take you on as a client.
Tip: don’t choose just any business broker. Instead, find somebody who has experience in the affiliate space. This will go a long way in improving your chance of a sale at a price you are comfortable with. I highly recommend Nick Beare from Exodus Ventures who was instrumental in my largest affiliate business sale.
4. Get Organised
It doesn’t matter what type of business you are selling, nothing changes the fact that you need to be organised. Potential buyers will have a variety of questions, so it’s important that you are ready to answer each and every one.
Getting organised means many things:
• Collect documents and statements related to your income and expenses.
• Take screenshots of your affiliate accounts.
• Be prepared to explain your processes, such as how you generate traffic.
The number of questions you will receive when selling an affiliate business can border on crazy. Even so, you need to keep an open mind and answer each question if you want to find a buyer.
Tip: a disorganised seller is one that most people don’t want to work with. When you don’t have everything in order, it’s easy for potential buyers to assume that you managed your business in the same manner.
5. Be Ready to Negotiate
There are no hard and fast rules on how much an affiliate business should sell for. Some people will tell you that 3 times EBITDA is reasonable. Others will tell you that this is entirely too low, especially for an affiliate business that has been profitable for an extended period of time.
The best thing you can do is set your price, based on your research and requirements, and go from there.
As you receive offers from interested buyers, keep an open mind. You don’t have to negotiate, but it’s a good idea. When you are willing to move from your price, you open the door to additional opportunities.
Tip: don’t feel that you have to finish off negotiations in one day. It’s not uncommon for this to drag on for several weeks or months. Both sides have demands, but you are in the driver’s seat.
Even if you know what you are doing, even if you have sold an affiliate business in the past, it is still likely that you will face challenges along the way.
Here are five of the most common challenges, all of which you should plan to overcome at some point in the process:
• Lack of interest. This doesn’t mean your affiliate business has nothing to offer. It is more likely related to the fact that others don’t know your business is for sale.
• Price concerns. It’s possible you will receive interest, just to hear the same thing time after time: your asking price is too high.
• Buyers who aren’t willing to close the deal. There is nothing worse than buyers who say they want to make a purchase, just to back out at the last minute. As frustrating as this may be, it’s something to expect.
• Keeping up the business during the sales process. Just because you are selling your affiliate business does not mean you can stop working. You need to keep your business in good order until the sale goes through. Your work doesn’t stop until the transfer is complete.
• Time consuming. Even if you find a buyer quickly, the process of selling an affiliate business is time consuming. Make sure you are in it for the long haul.
Success is Out There
If you want to sell your affiliate business, it’s possible that your dream could soon turn into reality when you take the right steps.
Success is waiting for you. Follow the steps above, overcome any challenges you face, and do whatever it takes to make a deal.
Roo Wright is a respected gaming affiliate and entrepreneur who recently sold his affiliate business to a UK publically listed company. His latest venture Hityah.com is gaining ground in the SERPs and set to be another success.