💻 Should you buy an online business?

Hey business buyers, have you ever considered working from your laptop at the beach?

Then maybe an online business might suit you.

Today we are investigating if you should buy an online business and if you should, then what type?

This week we had 227 new businesses listed.

So we are also featuring 10 of the most interesting businesses listed this week… 👇

10 Interesting Business For Sale this Week

Should you buy an Online Business?

I have both bought and sold online businesses. Here are some of the reasons why I find online businesses attractive to buy:

• Earn while you sleep = You can have your online business earning money while you sleep, it does not have to be tied to in person business hours.

• Higher profit margin = Online businesses such as Affiliate sites or SaaS businesses can run at 90% margins consistently without the need for property leases or large full time teams.

• Scale = It is a lot easier to take an online business nationally to everyone in Australia vs a local business offering a service that needs resources and people in each city.

• Analytics & Transfer = It is really easy to analyse or transfer an online business, there are benchmarks for things like conversion rates and customer acquisition costs that can make life a lot easier and software to help transfer ownership quickly.

• Work from home = There are some beautiful parts of Australia that traditionally had no jobs. You can buy an amazing property and be your own boss with a home business if you run a successful online business. (PS. I did exactly this, moving to outside Byron Bay instead of living in the city)

• Liquidity = When it comes to selling your business you don't have to find the exact person in the exact same area, your buyer can be anyone and you can transfer your website in a day vs the same traditional business that has a lease and a large team etc.

• Time to sell = The average days on the market for an online business are usually a lot shorter for online businesses. So if you needed cash for a house purchase or something you could sell your business quicker in general.

What are the different types of online businesses?

When we say online business, that actually has lots of different potential business model types. Here are the most popular ones to look for:

1. E-commerce Stores: Websites that sell physical or digital products directly to consumers. These would be the most common online businesses in Australia.

2. Affiliate Websites or Blogs: These sites have articles and guides on them and they earn revenue by promoting products from other companies and earning a commission on each sale made through their referral links.

3. Software as a Service (SaaS): Online platforms that offer a specific software service to users, often on a subscription basis. A good example of popular SaaS companies are Shopify plug ins that online store owners use to build their stores.

4. Mobile Apps: Applications for smartphones and tablets that might generate revenue through sales, in-app purchases, ads, or subscriptions.

5. Digital Product Sales: Sites dedicated to selling digital goods, such as ebooks, online courses, stock photos, or software.

6. Membership Sites: Platforms that offer exclusive content or benefits to members who pay a recurring fee.

7. Content Subscription Models: Sites like Patreon or OnlyFans where creators earn money by offering exclusive content to their subscribers.

8. Online Marketplaces: Websites where multiple sellers can list and sell their products or services, such as Etsy or Fiverr.

9. Online Directories: Websites that list businesses or services in a specific niche and may earn money from listing fees, advertising, or affiliate sales.

10. Lead Generation Websites: These sites collect and sell leads to businesses in specific industries (e.g., home improvement, insurance, loans).

11. Online Magazines or News Portals: Websites that produce news or magazine-style content and monetize through advertising, subscriptions, or sponsored content.

12. Online Communities or Forums: Platforms where people can discuss specific topics, and revenue might be generated from ads, memberships, or selling related products.

13. Domain & Website Flipping: Buying domains or websites, improving them (or just waiting for the value to increase), and then selling for a profit.

14. Online Gaming or Gambling Sites: Websites offering games, betting, or casino-style activities.

15. Streaming Platforms: Websites or platforms where people stream video content, often monetised through ads, donations, or subscriptions.

Now you see how wide the range of business models online is. You may also find businesses that have a mix of physical and online stores.

This might give you an opportunity to grow the business by growing the % of revenue that the online store makes.

Till next Tuesday!
Sam from Business For Sale