If you are looking to purchase an online business or sell yours, hiring an eCommerce business broker can make the process infinitely easier for you. When you have a competent and strong Internet broker working for you, you’ll have someone who knows the process of buying or selling online businesses inside and out, so you won’t have to navigate all those financial pitfalls and confusing factors by yourself. There are many ways that an Internet broker can make the process of selling or buying an online business easier. They can help you calculate the proper valuation for your business, market the business on the right channels, and help you draft the purchasing agreement to ensure that everything is up to industry standards.
However, the problem comes when you’re trying to choose the right internet broker for you. You can find dozens of agencies out there claiming that they will give you the best internet brokerage services. How do you choose the right one for you?
Here are four qualities that you might think are amazing characteristics to find in an internet broker, but under closer inspection are actually signs that you might be dealing with a poor broker and you’re probably going to waste your money!
1. They have a lot of clients. Like, a LOT of clients.
It stands to reason that you would want an internet broker who has a lot of experience in the industry and when you check a broker’s website, they probably have a list of the clients that they are working with at present. At a first glance, having a lot of clients might mean that they’re doing a great job; they won’t have so many clients lining up for their services if they weren’t good at what they were doing, right?
Well, no. While a healthy pool of clients is a great sign, there is such a thing as too many clients. This is a strong indication that they are not choosy when it comes to picking their clients and will take any business that comes to their door. This means that their services are stretched out too thinly that they won’t be able to focus on you!
2. They seem to have clients in every niche, even ones unrelated to your business
Another seemingly good sign in an Internet broker is when they have contacts in a wide range of different niches. This means that they will be able to advertise your business to a bigger pool of potential customers, increasing the chances of the sale going through.
Again, this looks good, but in reality, this scatter-shot method of advertising could do more harm to your business. Just because they are able to advertise your online business to a large pool of people does not mean that these people are actually interested in it! In fact, the bigger pool of “potential buyers” might mean that your business could get lost among all the other advertisements, and you’ll be left waiting for a longer time for your sale to push through.
3. They only give you good news
No one likes to hear bad news when it comes to business. In an ideal world, you want to hear that your business has a high valuation and that you have clients lining up at your doorstep wanting to buy your business.
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Beware of an Internet broker who only tells you good news and seems to go out of their way telling you that the process is quick and easy. The truth is that internet brokerage can take a long time and an honest e-commerce broker will be transparent with this.
4. They’re too eager to adjust to your budget
Everyone wants to save money and get the best bang for their buck so you might be looking for the best deal when it comes to your internet broker. When you consider how fierce the competition is in the brokerage industry, it’s easy to find an agency that might be willing to negotiate with you to meet your budget needs.
Again, be careful! While a great agency will have some wiggle room when it comes to pricing their services, they also know the value of their services and experience. If you are having doubts, canvass different agencies to see how much they charge for a similar set of services and use that as your average. If a particular brokerage agency offers a rate that’s significantly lower than this average, you might want to think twice about hiring them.