After spending five years building my profitable DIY home improvement blog, I finally decided to sell it earlier this year. Going through the process taught me so much about the world of buying and selling online businesses.
In the end, I sold my blog for over $200,000 to an investor who owns a portfolio of niche sites. It was a rollercoaster journey I won‘t soon forget.
If you‘re considering selling your blog, keep reading to learn from my experience. I‘ll share actionable tips, statistics, common mistakes to avoid, and more to ensure you properly value your site and have a smooth sale process.
Owning a Profitable Blog is Running a Real Business
When I quit my job in 2017 to blog full time, some friends and family members thought I was crazy. To them, blogging seemed more like a hobby than a business.
But after two years of non-stop work optimizing my site, building traffic, experimenting with different income streams, and tracking finances, I had a legitimate media company pulling in over $10k per month.
According to a recent survey from Orbit Media, the average purchase price for a blog is over $300,000. The most profitable niche site sales fetch even higher rewards.
Blogs make money through:
- Display advertising – my main source
- Affiliate marketing commissions
- Selling own products/services – had an eBook for a while
- Sponsored posts
With multiple income streams, blogs reduce risk and become more attractive acquisition targets, as long as traffic and revenue are consistent.
I tracked my monthly site performance in spreadsheets and documented key login credentials, affiliate programs utilized, and freelancer contacts. This made the due diligence process much smoother later on.
Tracking Performance and Preparing Detailed Records
From day one, I treated my blog as a real business, even when it felt more like a passion project early on.
I registered an LLC, opened a business bank account, and implemented accounting software. This allowed me to closely monitor expenses, segment affiliate program payouts, and categorize sales from my various income streams.
By year three, I had over 36 months of detailed financial performance tracking in Quickbooks. When it came time to sell, I simply exported and shared these reports with prospective buyers.
I also documented key account logins, domain registrar info, hosting credentials, and any outsourcer or agency relationships in a password manager. Keeping meticulous records reduced headaches when transferring everything to the new owner.
Common Blog Profitability Metrics
According to Empire Flipper‘s latest report, the average website business has:
- Gross annual revenue: $374,153
- Annual net profit: $114,298
- Monthly recurring revenue: $9,525
- 76% have multiple streams of income
- 25.2 months average age
My blog was right in line with these benchmarks when comparing traffic, income, costs, etc.
Surpassing metrics like these signals to potential buyers that your business is stable, successful, and worth investigating further during the valuation process.
There are Many Potential Buyers for Profitable Blogs
The first step was determining realistic market value for my site.
I asked a few blogger friends if they knew anyone in the space looking to acquire sites like mine. Two people showed initial interest, but the strongest lead came from an investor referred by my accountant.
This individual manages a portfolio of blogs earning ~$60k per month!
He asked very detailed questions about traffic, costs, income streams etc. I sent over my spreadsheets and walked him through anything unclear.
Within a week we agreed on a reasonable valuation formula based on 12 months trailing profit. His first offer was $160,000, but after some back and forth we settled at $220,000 ($20k earn out in 12 months).
I also fielded offers from 3 different brokers during this period:
- Quiet Light – $180,000 – $220,000 estimate
- FE International – $200,000 ceiling from one client
- Empire Flippers – No official estimate, but had multiple interested buyers according to rep
As you can see, even a small niche site like mine appeals to various investors, buyers, and brokers out searching for quality assets.
The blog space is hot right now according to Empire Flippers recent data. Their average 2020 site sale closed for $389,424!
Common Sales Channels and Buyer Types
While networking within blogger communities led me to my ultimate buyer, others have success selling via brokers or online marketplaces.
I received several attractive offers after listing my site with Quiet Light for a 6% sell-side fee. They vetted buyers, helped compile diligence docs, and facilitated negotiations.
Flippa is another marketplace that caters to mid-level blogs and sites. Sale prices here tend to be lower, but deals close quickly with their automated process.
Blog acquirers typically fit a few categories:
- Individual investors expanding into the space
- Private equity firms and family offices
- Those building portfolios of niche sites
- Competitors looking to eliminate rivals
- Corporations seeking strategic acquires
I was approached by 3 different portfolio buyers during my process – it‘s a growing strategy. The multiples and operating efficiencies obtained from scaling this way are quite attractive.
Tips to Properly Value Your Blog
One mistake I made early on was over-valuing my site. Most experts suggest basing the valuation on some multiple of yearly profit. Common multiples range from 24X – 36X amongst qualified buyers.
However this formula alone misses many other key factors that affect value and sale price:
Key Factors Impacting Blog Valuations
| Factor | My Situation | Impact on Value |
|---|---|---|
| Traffic consistency | Steady growth over 2 years | Positive – shows stability |
| Income concentration | Mainly display ads | Negative – needed diversity |
| Operational costs | Outsourced writers | Slight negative – but reasonable |
| Work required | 10 hrs/week management | Positive – easy to maintain |
My friend Jillian recently sold her food and recipe site for $280,000 after running it for 8+ years. She shared some examples with me of other bloggers selling sites for between 2X and 5X yearly income.
One super important thing I learned – no blog is worth ANYTHING unless one buyer is willing to pay your asking price.
Recent Niche Site Sales Database
Quiet Light keeps records of all completed deals in their network. Below is a sample of recent niche site sales for further comparison:
| Niche | Revenue | Sales Price | Multiple |
|---|---|---|---|
| Fishing | $47,200 | $315,000 | 6.7X |
| Survivalism | $86,500 | $345,000 | 4X |
| Wine Making | $62,300 | $186,900 | 3X |
Average multiples tend to fall somewhere between 24-36X monthly profit amongst the mid-tier to larger deals. This varies significantly based on niche, traffic levels, costs, and more.
Utilizing a database like Quiet Light‘s for comparisons in your space takes much of the guesswork out of determining accurate valuation ranges.
Additional Tips for Proper Blog Valuations
Beyond profit multiples, here are some other quick tips around valuations:
- Factor in the workload required for the new owner to maintain the current income level
- Consider utilizing a professional valuation expert if the deal size warrants it
- Research public comps and sales of similar blogs whenever possible
- Calculate goodwill value based on intangible assets like branding and audience loyalty
- Don‘t get emotional and over-inflate numbers without merit
Approaching valuation objectively from the buyer‘s perspective is crucial. Ultimately though, it only takes one willing investor at your asking price to make a deal!
Plan Ahead and Set Realistic Expectations
Don‘t assume you will sell your site instantly, especially for large sums. My negotiation took almost three months from initial outreach to bank transfer.
I lined up my attorney beforehand to review the purchase agreement. We went back and forth over specifics around security, payment terms, earn outs etc. until both parties were pleased.
Leading up to close date, I prepared detailed documentation around plugins used, hosting logins, affiliate programs integrated, and ad partner contacts. When the new owner asked questions, I scheduled Zoom calls to provide context.
Speaking of hosting – I made the mistake of selling the site before transferring hosting accounts. It created lots of headaches down the line having to coordinate domain transfers while new owner set up his preferred provider.
I recommend separating your blog onto its own hosting plan if you think you may sell in the near future. Removes one huge burden later on.
Have Transition Support in Place
Expect that most buyers will want some level of transition support from you post-sale. I built this expectation into negotiations and carved out a reasonable timeframe for questions.
In the purchase agreement, we outlined 40 hours of post-sale support to field inquiries about blog operations, tools used, monetizationnuances etc.
I put together an extensive onboarding guide covering my daily and monthly processes managing the site, key contacts, calendar reminders, and more. Sharing my SOP ensured a smooth passing of the baton.
While losing the ongoing revenue stream from my site took adjustment, seeing a multi-year effort result in a life-changing payout made everything worthwhile.
The lessons learned now help me as I scale my newer kitchen design blog and optimize for an eventual exit down the road. But I‘m also savoring the journey this time around.
Good luck to anyone considering selling their prized asset! Please reach out if you need any advice.
John McIntyre is an internet entrepreneur and blogger with over 10 years building and selling profitable websites. He provides consulting services to aspiring niche site owners.
