While it is easy to state that it is very important to sell your website at the right time, the challenge is determining the right time. We always tell our sell-side clients and prospective clients that the best time to sell their website is not only when the revenues and cash flow are stable, but when they are growing at an adequate rate as well. When a business is growing and showing strength and viability it demands a higher multiple. When a buyer can predict projected cash flows to a great degree of certainty, he has more confidence in his investment and ROI and will thus be more inclined to pay more for the internet business.

The biggest mistake that an internet business owner can make is hold on to his or her website for too long and risk a trend reversal and an accompanying lower valuation. Any internet business broker will tell you that a buyer will value a business higher that has respectable revenue and earnings growth than one that is flat or on the decline. Another mistake that some sellers make is that when they mentally decide to sell their website, they commit less of their energy to it and focus more on their next project. Any intelligent buyer will not only look at the financial statements but also the traffic data as well. When it is apparent that growth is slowing or nonexistent it becomes more challenging to sell ecommerce business at an attractive multiple.

If you plan on selling your website, most internet business brokers will advise you to continue working your online business aggressively and efficiently until the closing of the transaction. Your efforts will be apparent and relate in buyer confidence and you will also be rewarded by the temporary cash flows that you will earn until the sale is complete.