Top 3 Marketplaces to Sell your Startup
We all have some ideas to start a startup, but not all are lucky enough to succeed.
Some might feel overwhelmed managing it; some want to switch to another idea, some may take it to certain heights and then don’t know how to move ahead or get bored of it; some might get lucky to build a fortune out of nothing.
Reasons can be many for a startup owner to sell his/her dream.
But it’s not easy to leave your dream behind; either you can just lose it entirely, or you can sell it to the right buyer and earn a profit on it.
So the main issue is to find like-minded people who want to buy a business or how to reach them for the same.
However, with the digital era, people consider selling startups online as it’s easy, safe, and quick. Again to find the most secure, trustworthy platform out of so many can be challenging and time-consuming for many people.
To make it easy for you, we have listed the top 3 most popular marketplaces that allow you to sell your startup online in the easiest, safest, secure way.
One of the best international marketplaces where one can sell their startup is FIH.com. FIH stands for Find, Invest & Hold.
This online business brokerage company operates based in New York City and has teams in California, Germany, Vietnam, and the Philippines.
The company has around $44,000,000 in transaction experience and has a CPA on staff to review all the financial statements.
Before listing your product on FIH, you have to enter a few details about your business. It will help present your business in the best way to all the potential buyers.
You can start the process by entering the URL of your business, mentioning how old it is, and the number of hours a week it takes to manage the business.
The next step involves selecting the business model which your business closely resembles.
Then, you can mention the financial estimates of your business as per fixed periods.
Now, you can help FIH.com understand the total traffic the business gets. Also, you get the option to link Google Analytics.
Then, you can submit a brief description of your business. This step helps FIH understand your business better and can help expedite the vetting process.
Finally, you can submit your application by paying the listing fee of $489. If your business gets rejected, the listing fee will be refunded. You can also use referral codes to reduce the listing fee.
Depending on the selling price of your business, FIH.com takes a cut known as the ‘Success Fees’. Like with other marketplaces, the fee decreases as the selling price increases. Here is a picture of the pricing structure.
As you can see, FIH.com also charges a listing fee of $489. This price is fixed, irrespective of the type of business.
You might be thinking that this price is very high. Well, this is because FIH.com treats every business equally and provides each listing the best exposure so that many people view the listing.
- Experienced broker to ensure the smooth sale of the business from start to finish
- Secure transactions
- Listing fee of $489
If you are looking for one of the best marketplaces for buying and selling small online businesses, do take a look at Flippa.
Initially, Flippa started as a platform for buying and selling online businesses, domains, websites, and apps. Now, the company has expanded to selling marketplaces and Amazon FBA shops.
Flippa is another one of the best choices for sellers. You can easily list your business on their website by filling out the relevant information.
Moreover, if you have an eCommerce website, Flippa lets you connect Google Analytics so that you can easily display metrics such as proof of traffic and more.
Flippa offers the seller two different ways to sell products, auction listing or classified listing. Auction listing is valid for 30 days, while classified listing doesn’t have any time limit.
You can also use Flippa’s ‘Website Broker’ service, which allows a broker to take over the listing so that you don’t have to stress over the same. The broker does the best job of presenting your business in the right light, which can drive up the selling price.
The valuation process provided by Flippa is very intuitive. It is very easy to use and is the perfect tool for beginners. Flippa uses the help of a bot to run the valuation tool on their website. Not only is the bot very efficient, but it is also very quick.
Otherwise, you can also choose the option of interacting with one of the brokers from Flippa.
First, the broker analyzes the business’s assets, invoices, and other chief valuation factors. Then, the broker arrives at an accurate estimate of the value of your business.
Depending on the selling price of your business, Flippa takes a ‘Success Fees’ cut. As the selling price increases, Flippa’s success fees go down. Here is a picture of the pricing structure.
You can also choose to use one of Flippa’s partner brokers, who charge 15% of the total selling price of your business.
Hiring a broker is useful as they ensure that the ads, merchandise, and copy are professional and the absolute best. Flippa also charges listing fees, given below:
- Listing fee of $15 for starter sites.
- Listing fee of $10 for selling a domain.
- Listing fee of $15 for selling apps.
- Listing fee of $49 for established websites.
To attract more potential buyers, you can upgrade your listing. This listing fee can range anywhere between $65 and $545, depending on the type of exposure you want.
- ID verification ensures that you get serious inquiries
- Professional brokers can handle sales and target the ads towards interested buyers
- Escrow service protects online payments
- Seller may not prefer handing over the listing to an unknown broker
- Flippa takes a cut from the sale, thus reducing your profit margin
- Internet sales are always at the risk of falling prey to online scams
BizBuySell is another popular marketplace where you can sell your startup business. Founded in 1966, the company deals with several different types of businesses on its platform.
Popular businesses for sale are real estate, established businesses, asset sales, and franchise opportunities.
BizBuySell has around 45,000 businesses listed on its website. If you do wish to list your website on their website, you need to have marketing materials so that your business stands out.
Also, BizBuySell offers the seller a free ‘Guide to Selling Your Small Business’. The guide lists out guidelines to prepare you for selling your business.
Moreover, the guide also gives tips about copywriting, marketing, and other important things for selling a business.
BizBuySell offers three simple valuation processes. Depending on which step of the process you are in, you can choose from one of their valuation processes.
The first valuation option is the BizWorth calculator, which gives the least detailed valuation of your business.
After providing a few details, you get a ballpark of how much your business is valued. This tool is useful for people who are considering whether or not to sell a business.
The second valuation tool is the BizBuySell Valuation Report. This report gives you comparisons of how your business stacks up with other similar businesses.
Moreover, the report also gives a much accurate estimate by compiling comparisons identical to the business.
The most detailed tool is the DealCoach valuation.
Here, BizBuySell provides an expert for one on one meetings. With the help of the broker, you can arrive at a more accurate price for your business.
Not only does the broker reveal your standing against your peers, but you also get valuable insight into how to improve the business.
Unlike other marketplaces, BizBuySell has a very straightforward pricing structure.
If you wish to list your company on BizBuySell, the company charges $59.95 for six months. For a shorter period of 3 months, you will have to pay a fee of $79.95.
Also, during this tenure, you can only list your site on BizBuySell and nowhere else.
For a Showcase Ad, you will have to pay a fee of $79.95 for 6 months. The shorter 3-month option charges $99.95. Moreover, these prices can vary depending on the room that your Ad takes.
For hiring a broker, the fees are slightly on the higher side.
Firstly, you have to pay the price for the ad and pay the extra premium for hiring a broker. Most business brokers charge a fee of 5% to 15% of the final sale.
Hiring a broker is an excellent option for people looking to avoid the stressful part of selling their business.
- BizBuySell has an affordable pricing structure
- Posting a listing is very easy and does not take much time
- With more than 45,000 business listings, your ad may face a lot of competition
- For extra help, an extra charge is required.
- As the seller is responsible for their listing, many sellers often hide out vital factors that can hurt the buyer.
Best Marketplaces to Sell your Startup Comparison Table
|Factors to look for||FIH.com||Flippa||BizBuySell|
|Vetting of Buyers||Yes||Yes||No|
|Confidential and Anonymous||Yes||Yes||Yes|
|Success Fees||3% – 9% of total sale||5% – 15% of total sale||5% – 15% of total sale|
|Google Analytics Integration||Yes||Yes||No|
|Remote Business Management||Yes||No||No|
If you want to attract a lot of buyers, both international and domestic, then FIH.com is an excellent option. The company provides benefits like low success fees of 3%.
Moreover, the company has more than 10,000 investors, remote business management, and service listing management.
The fact that all this is done while maintaining 100% confidentiality and anonymity makes it one of the best marketplaces to sell startups online.