We put together this Website Properties review to help make the process easier. We took an in-depth look at the business and its procedures.
When trying to decide who to list your internet business with when you are ready to execute your exit strategy can be a tough decision.
No one wants to be the victim of a scam. That is why research is crucial.
We outline the people behind the business, how they do their evaluations, the selling process, and more about the company. Read to the end for our conclusion and verdict on this company.
Overview of Website Properties
Website Properties is actually one of the original website sales players. They opened their digital doors in 2002 and show no signs of stopping.
They are experts in the realm of buying and selling online properties because it is all they do. There are some brokers that mix brick and mortar business sales with the selling of online properties.
While this is not a bad thing, the laser focus of Website Properties is what has put them ahead of the game. Occasionally you might see a listing for a brick and mortar business but that is the exception not the rule.
One of their claims to being an expert in this field is that they are not just brokers. Website Properties actually start and sell their own internet businesses. They are right there with internet entrepreneurs that use their services.
This is something that really sets them apart. In the last 20 years, they have bought and sold numerous internet businesses. This insight really gives them an edge.
People Behind the Business
There are actually not that many people that are working behind the scenes to make Website Properties successful. There is a team that makes customers feel like they are the only customer they have.
The team only consists of five people that are from all over but have come together in an office in Washington state.
A good team is something that can not be understated. While their business is booming they pride themselves in keeping the team small. This may be a contributing factor to their success.
David Fairley, Founding Partner & President
The founder and president of Website Properties has the experience needed to run this company. As the leader of his small but effective team, he has made sure the company has followed the internet trends in a profitable way.
He does have a formal education that serves him well in this business. He graduated from the University of British Columbia.
His degree concentrations were a Bachelor of Commerce majoring in marketing. This is the underpinning of Website Properties.
Because he is an internet entrepreneur himself, he noticed a hole in the broker industry. With eCommerce growing faster than some thought it would there was a need for professionals to buy and sell internet businesses.
When David saw that there were many brokers to help sell brick and mortar businesses but not as many to sell websites, he decided to start a new business and enter that niche.
His experience has made him a valuable asset to companies. He is often kept on retainer as a consultant so larger internet businesses are ready when it is time to sell.
Natalie Oliviero, PARTNER VP Finance & Operations
Finance, administration, and international business are all areas of expertise with the next member of the team.
Natalie came to the team the year after David started the business to help launch the business. She has always been over the operations and finance department.
However, this is not the extent of what she does now. Currently, she still oversees operations and finances but she also helps clients prepare their businesses.
Chris Sheedy, VP Sales
Building a team that is experienced and builds confidence in the clients seems to be the aim of Website Properties. The next member of the team is no exception.
Chris Sheedy has nearly two decades of experience in finance, brokerage, and international trade.
He is now the VP of sales with Website Properties. Chris manages the business sales transactions to make sure everything goes through correctly.
With his years of experience comes contacts in the industry. This helps in his other role in finding new qualified buyers to add to the company’s Rolodex.
Audra Sheedy, Client Services Representative
A company that does as much business in the eCommerce business sales sector needs strong client services representatives.
Audra Sheedy is one of two client service representatives. She has extensive experience in office administration as well as eCommerce. This makes her a valuable member of the team.
One of her main roles is to handle the inquiries that come if for internet business opportunities.
Marlee Simmons, Client Services Representative
The fifth member of this five-person business team is Marlee Simmons. Like Audra, she is a client services representative.
Similar to the other members of the team, she has significant experience with administration, eCommerce, and client services. Because of living in the Yukon part of Canada, she is no stranger to internet sales and eCommerce.
She helps manage inquiries, questions, concerns, and helps clients get the service they need. With a strong person in this position, clients can be confident that their purchase or sale will run smoothly.
Types of Businesses Website Properties Sells
In this Website Properties review, it is important to talk about what types of businesses they sell. Their area of expertise lies with selling established internet businesses generating a minimum of $35k in annual net profits and valued between $100k and $25M. If your business falls in this range, they would happily provide you with a free business valuation.
When looking at the properties that are currently for sale of their website it seems like there is no limit to the type of business they will sell.
Just on the first page, there is an auto industry business followed by wireless audio devices and medical management. Your online business is something Website Properties can sell if it is profitable.
Below are a few specific types of websites they sell:
- Amazon FBA
This is not a comprehensive list but gives you a good idea of the internet businesses they sell. If you are in one of those categories and might be ready to sell, it looks like Website Properties can help you out.
Website Properties Valuation Process
When you are considering the sale of your business, it all starts with a business valuation. The process at Website Properties is simple for you but the data you provide allows them to complete an in-depth evaluation of your business. Website Properties will work with you to understand your business, its financial history and all of its unique facets.
They will actually give you a valuation and consultation for free. There are no obligations for this to happen. But they will need some information from you. In order to give you a proper and accurate valuation, Website Properties will ask you for some specific numbers and paperwork.
In order to give you a proper valuation Website Properties will ask you for some specific numbers and paperwork.
- Basic details about your business and niche
- Profit and Loss details
- Website Traffic
- Historical details
- Customer database
- Growth rate
This is not all they can and will ask for but it gives you an idea of what you need to have together for a valuation. The company can only give you a proper valuation if you give complete and honest information.
When it comes to your financials, they will ask you for the last three years of Monthly P&L statements as well as for the most recent Trailing 12 Month period.
This information will need to be provided in Excel for ease of looking at the numbers. After all of this is provided they will be able to give you a current market value for your business.
Website Properties Sales Process
Website Properties has a detailed selling process that protects both the buyer and the seller. The first step was outlined in the previous section. Watch the video below for more information on the Valuation and the Onboarding process in general.
Once the valuation of your business is complete and you decide to sell using Website Properties as your broker the next steps are taken.
The team at Website Properties will work with you to finalize the recasted financials, prepare a prospectus of your business and create a listing ad.
The listing ad will be posted to WebsiteProperties.com as well as all of their social media accounts and to their network of Business for Sale portals with which they have brokerage accounts. Some of which also lists the ad and is searchable on over 125 partner websites. They also send an email announcement to their subscriber list of over 25,000.
In addition to exposure through their site, network of business for sale portals and extensive email list, the Brokers at Website Properties market directly to contacts in their own personal rolodex that they feel would be a good fit for your business given their acquisition criteria.
Once a buyer is interested they will submit a signed non-disclosure agreement and be sent the prospectus of your business. As the prospectus is released to interested parties with an NDA on file, your Broker will then field questions from further interested Buyers and connect with you to get any responses as needed and/or to set-up a conference call to discuss the finer details of your business.
If after reviewing and further discussing the company details, a buyer is interested in acquiring your internet business, the Buyer would then submit a written offer in the form of a Letter of Intent (LOI). Your Broker will discuss any offers with you and if any seem like a good fit, you will then co-sign the respective LOI. Your Broker will introduce you to the Buyer to connect directly and begin the due diligence process whereby the Buyer will request third party documents of your business to substantiate and verify the company financials as the next step in the process that leads to closing on the sale of the business.
The last part is the final signing of a Purchase Agreement. This is similar to a brick and mortar business or a house purchase. The closing is completed with an escrow service.
Website Properties Success Rates
This Website Properties review would not be complete without talking about the success rate of the business.
The success rate of this company is 85% when it comes to the closure rate. That is to say that of the businesses that they buy and sell for the owners, 85% of them are sold successfully.
That is a great percentage rate. With numbers like that it is a good possibility that, if your business is listed by Website Properties, it will sell.
Fees Charged By Website Properties To Sell A Business
While there may be companies that sell websites that charge to list a business, Website Properties is not one of them.
However, they don’t sell your website for free. The fees that they charge are simply a percentage of the sales price.
Website Properties is a performance based brokerage firm. No fees are due unless the business is sold. Broker fees are on a tiered commission structure as low as 6% based on the total sale value of the business sold. This commission is not paid until the business sells. At that time it will be taken out at the closing.
Pros and Cons of Using Website Properties
As with any business, there are pros and cons that you will encounter when working with them. In this Website Properties review, we want to give an honest and unbiased evaluation of the company.
It is important to note that no matter what company you use there will be things that are not ideal. If the pros outweigh the cons and you feel comfortable with the business then forge ahead.
This is not a comprehensive list of all of the good things we like about Website Properties but it is a list of what we are most impressed with.
- Free Valuation This is a big deal. While there are other companies that do give a free valuation, we like how in-depth this company went with it. They are truly preparing to list your company. If the valuation goes well and you agree to work with them then you are set to list.
- No Listing Fees are a huge pro. They don’t charge for the valuation or for listing. They don’t get paid until you do.
- They are internet entrepreneurs as well so they really get it. They are in your corner and want your business to sell for what it is worth.
- Small staff for a personal feel. With a staff of only five highly skilled and experienced employees, you won’t get lost in the shuffle. They will know you by name and treat your account like the only one.
- High success rate. They have a success rate of 85% which is very high. This gives those buying and selling the confidence that their sale is likely to go through.
Of course, with pros come the cons. Because businesses are run by people there are always things that won’t be ideal.
With that being said, there was only one thing we could list as a con. And honestly, for some people, this may not be a factor at all.
- Typically only work with larger businesses. While they have worked with internet businesses with smaller valuations, they typically only work with businesses that are valued in the higher price range. They also don’t work with all businesses. Part of the valuation is making sure you are a good fit. However, no matter what size your business is, contact them first and they will let you know.
Our Experience With Website Properties
We contact every business broker we list on Business Brokers Rated. This allows us to gauge response times and get a feel for the company.
In this review of Website Properties, we can take this one step further. The founder of Business Brokers Rated has extensive experience with Website Properties. He has sold five businesses using Website Properties.
Four businesses were affiliate based websites that he sold for mid six-figures using Website Properties.
One of the web properties was an Amazon FBA business that he built from the ground up to over a million dollar brand in around 14 months. Website Properties helped to sell this business for over 7 figures!
Each business he sold using Website Properties sold very fast. This is because they have an extensive list of buyers and typically find a buyer very quickly.
In his opinion, Website Properties is by far the best business broker / best website broker you can find.
They have an amazing staff, and everything from beginning to end is done with utmost professionalism.
Plus, you get one on one attention you just don’t find with other business brokers.