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How to Sell an EdTech Website?

How to sell an EdTech Website

If you are an EdTech website owner and you have reached a point where you don’t want to run the business anymore, you might be looking for a successful exit strategy. So, I decided you write this helpful article that will guide you through how to sell your EdTech website the right way.

How to sell an EdTech website? You can sell an EdTech website on any of the online website brokers like Flippa, Investors Club, Motion Invest, Empire Flippers, etc, which make it a lot more convenient. However, you might also consider selling through your personal networking and industry outreach, which at times give you a lot better deal.

If you have a successful EdTech website that you are trying to sell, you have probably spent years building it. It is important to understand the different factors and nuances involved in successfully selling your site, or else you might lose years of blood, sweat, and tears.

Selling your EdTech Website

As mentioned, the most convenient way to go about selling your EdTech website is through one of the broker websites. There are many brokers that you can choose from, and some of them are more suitable for the Edtech industry than others. Here, you should be careful about choosing the right broker. Always go for reputed, tried, and tested ones, and avoid the numerous newcomers that pop up every day, since it’s hard to tell which of them are legit.

The most popular platform for selling websites is Flippa. It has a significant number of both sellers as well as buyers and you can get a good price for your site. This site has buyers willing to spend up to millions of dollars if your site is worth it. Flippa charges $49 for listing a website, and you can even go for packages with a one-time payment, in case you want to sell multiple websites

Investors Club is another trusted website broker. They offer their services at a fixed 7% brokerage, irrespective of the deal size. They have a transparent valuation system and they share the justification of the pricing with the buyers. Also, it allows the buyers and sellers to negotiate directly. If you list your site on this platform, they have a 45-day exclusivity condition, i.e., you cannot list your site on other platforms for the first 45 day.

If you have a relatively new EdTech website that hasn’t grown to its full potential and you want to exit it due to any reason, the most preferred platform is Website Flip. Most of the sites sold on this platform are below $50,000 dollars, and you can get a good deal for your small website on this platform, which may be difficult to get on other platforms which are dominated by high-value deals.

Selling your EdTech Website offline

If you do not want to go for an online broker and you are more comfortable with deals in person, you can use your personal networking skills to sell your site. If you want to go by this route, you should be building relationships in your industry since the day you started your business.

Building valuable networks is not an overnight task and takes time and consistent engagement. As a business owner, you should be visiting industry conferences, and networking events or engaging in industry reach outs all the time, whether you’re planning to sell or not. And the fact is, even though selling your website through personal networks takes more effort, in many cases, it brings you better deals than third-party brokerage platforms.

How to value your EdTech website

The valuation of your EdTech website depends on a lot of factors like how much money it is making, what is its future growth potential, what is the growth potential of the industry and the market, what are the methods of monetization, and what are sources of traffic.

The most important factor that determines the valuation is its earnings potential. As a rule of thumb, websites sell at 20 to 60 times their monthly earnings. And the most frequent valuation is close to 30 to 40 times the monthly earnings. For example, if your website is earning $1000 a month, it will be sold at a price of $30,000 to $40,000.

Let’s see the valuation based on the monthly earnings of some of the websites available on Investors Club for sale.

Website Valuations based on Earnings
Valuation of Websites on Investors Club

When is the best time to sell your EdTech website?

Owning and running a business is exhausting and there can be a point when you reach your limits. It can be tempting to consider selling your EdTech website when you are down on motivation and are facing troubles in your business. I recommend you fight through the ups and downs in the business for at least a few years and doing so consistently will most probably bring your website to a place where it is making a decent income.

An acceptable time to sell an EdTech website is when it is at least making a full-time income for one person, i.e., around $3,000 to $4,000 a month. Also, make sure you sell your site when the month-on-month revenue is on an upward trajectory rather than when it has plateaued or started declining. That’s why I mentioned don’t sell your site when your business is down. It’s worthwhile to work on it and push it for a few months until its revenue gets back on that upward trajectory.

Also, most buyers like to see consistency in the earnings for at least a few months before buying the site. For example, if your current month’s earnings are $5,000, but last month it was only $500, it may not be the right time yet.

Due Diligence for selling your EdTech website

Due Diligence reports are essential while selling any business, be it online or offline. Due diligence is the investigation, audit, or review performed to confirm the ownership, financials, legitimacy etc of the business. Due diligence is usually performed by the broker or the buyer before buying your site. You as a seller should be prepared with the relevant documents and other details which can be shared when required.

Due diligence may involve an investigation of the domain ownership, data assets, revenue, and tax returns. It also involves investigating whether your EdTech website violates any terms of service of Google, whether it has conceded any penalties, or does it have any toxic backlinks, etc. In general, if you have built your website organically and have not used any Blackhat tricks, and have run your business honestly, you should be good to go.

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