There are certain businesses that only require a computer, and even then the computer doesn’t have to be included in the sale of the business. Businesses with significant digital properties are still businesses and can be listed for sale. Though they are not listed in a traditional marketplace, they are listed in a marketplace for digital businesses. Even if the business is not operating, but the asset represents something with significant development or setup, then you can sell just a digital asset. Here are some samples of digital business or digital assets that you can list for sale:
- Service Businesses (brokerages, marketing agencies, etc)
- Ecommerce Website (without inventory if it’s a digital-only business, shopify site, dropship site, etc.)
- Content Website (blog, directory, forum)
- Software, Software As A Service (SAAS)
- Apps (Apple or Android)
- Newsletters
- Domain Names
Why would a digital asset sell? What is the value of a digital asset?
There are obviously different methods of valuing a digital asset or digital business. If a digital business is operating and making net income, then an income-based method can be used to value the business, similar to any operating business. Digital assets might have different methods for coming up with a valuation. A domain name for example, is usually automatically valued by an algorithm which accounts for how short or long it is, whether it uses real words or made up words, whether it is a .com or other extension, and whether it has any history or back links pointing to it. The back links would help determine it’s SEO value. In other words, someone could want the domain name because it can instantly come with Search Engine Optimization and already have web traffic or it might be closely associated with a brand they want to develop.
A digital asset could be valued by replacement costs. If a buyer wanted to develop an app but there is already one in development, then they could pay a similar or lesser price and save a lot of time. It might also come with information or resources that they need, like the name of a trusted developer.
Digital Assets can have value because they either produce income or supplement marketing and development for a brand that the buyer wants to create.
Do I need a Business Broker to help me sell a digital business or digital asset?
Some sales are more simple than others and you could potentially sell on your own. But the more an asset is worth or the more sophisticated a sale, the more you’d want a Business Broker to assist you.
Associated Business Brokers can broker the sale of digital businesses and digital assets. Contact us if you’d like to discuss this further.