It’s pretty simple. We value websites on their profit. Depending on the site, the acquisition price is typically somewhere between 30-36x of monthly profit.
We try to keep it as simple as possible. We need to verify revenue, profit, and site analytics. Revenue is typically verified through whatever revenue source the site currently has. If your site uses an ad network, we can login together and verify it in real time. Additionally, site analytics can typically be verified in real-time.
Upon verification of revenue, profit, and site analytics, Megamattic uses a standard asset purchase agreement. The entire transaction can be done within 24 hours. But, we recommend that everybody takes the time to complete due diligence, including having an attorney look over the documents. This can have the acquisition take a bit longer.
All assets related to the website should be included in the sale of the website, including the domain name, content, social media accounts, and email lists.
The tax considerations when selling a website can vary depending on several factors. It’s important to consult with a tax professional or accountant who is familiar with the tax laws in your jurisdiction for accurate and up-to-date advice. However, you can check out our more in-depth response in our blog post: What Are The Tax Implications Of Selling A Website?
In order to make the transition as effortless as possible, Megamattic has done the following things: First, we use a standard Asset Purchase Agreement that is easy to understand. It benefits us to have a quick and reliable process, and that only works when it’s easy for the seller. Second, we use Escrow.com to ensure that both parties get what they committed to.
Megamattic prefers a payment structure that includes an upfront payment to the seller, a 1 year period of seller financing with payments made to the seller each month, and finally a lump sum payment at the end of Year 1.
This helps eliminate the many shady deals that scammers are trying to pass off as legitimate.
Selling a website is a pretty standard event. The primary concern should be to use an Asset Purchase Agreement that is legally binding where you live. Megamattic uses a standard asset purchase agreement that is binding in the state of Utah.
Additionally, Megamattic recommends that you get in touch with an accountant or tax professional before selling your website.
Megamattic has a standard Non-Disclosure Agreement that is used for all of the deals that we’re looking at. However, the due diligence process is mostly limited to financial disclosures and website analytics.