--- title: "How do you negotiate the price of a website or online business?" url: https://firstpassmemo.com/answers/how-to-negotiate-the-price-of-a-website/ updated: 2026-10-16 publisher: FirstPass Memo (hello@firstpassmemo.com) --- Answers # How do you negotiate the price of a website or online business? Short answer: Negotiate from what the business pays back after your own time and the costs the seller left out, not the asking multiple. Tie every price change to a finding from diligence, offer a number with its arithmetic, and use seller financing or an earnout to bridge a gap when the seller's confidence in the future is higher than yours. Updated 16 October 2026 · Figures checked against their sources on 16 October 2026 · By Joan Murphy (https://firstpassmemo.com/about/joan-murphy/) (pen name) · How we check (https://firstpassmemo.com/methodology/) · Corrections (https://firstpassmemo.com/editorial-policy/) ## Check a listing now, free FirstPass Memo offers a free red-flag checker for business-for-sale listings and a $79 first-pass memo on a specific listing you send, paid after delivery. Paste any listing below for payback, the asking multiple and its red flags. Nothing you paste leaves your browser. Open the full checker (https://firstpassmemo.com/checker/) to unlock every flag with its seller question. ## What should a website offer be anchored on? Anchor on what the business will pay you back after your own time and every cost, not on the multiple in the listing. Sellers anchor on their best figure; buyers who simply bid a little under it accept that figure's assumptions. Work out the true monthly profit, decide the payback you need, and let the price follow. The maximum offer calculator (https://firstpassmemo.com/tools/max-offer-calculator/) does that arithmetic in reverse. ## How do you justify a lower price without souring the deal? - Tie each change to a finding. "Search clicks fell 25% after the March update" or "the writer invoices add $400 a month" is a reason; "it feels expensive" is not. - Show the arithmetic. A short note with the profit you verified, the costs you added and the payback you need is easier to accept than a bare number. - Ask the questions that change the price first, before exclusivity, using a seller question list (https://firstpassmemo.com/answers/questions-to-ask-before-buying-a-website/). - Keep the seller's reason for selling in mind. A seller who wants a quick, clean close may value speed and certainty over a few thousand dollars. ## How do you get from the listing price to an offer? A composite site asks $60,000 on $2,200 a month of profit, 27.3 months as listed. The seller works 8 hours a week. Priced at $30 an hour in the true payback calculator (https://firstpassmemo.com/tools/payback-calculator/), the profit left for you is $1,160, and true payback is 51.7 months. Composite example, run through the true payback calculator (https://firstpassmemo.com/tools/payback-calculator/) | Asking price | $60,000 | | --- | --- | | Stated monthly profit | $2,200 | | Owner hours a week | 8 | | Hourly cost of that time | $30 | | Payback as listed | 27.3 months | | Multiple as listed | 2.27× | | Owner time per month | $1,040 | | Profit you keep | $1,160 | | True payback | 51.7 months | | True annual multiple | 4.31× | If you want about 36 months of payback after paying for the work, the arithmetic gives roughly $41,800 ($1,160 × 36). That is your anchor, and the note to the seller explains it in two lines. ## How can terms bridge a gap in price? When the seller will not move far, change the shape of the payment. Acquire.com's multiples report notes that higher multiples "may involve conditions such as earnouts or seller financing, while all-cash deals often trade simplicity for a lower headline price". In the same example, paying $40,000 at closing and $20,000 over 18 months at 6% gives the seller their price, while the business itself carries much of the balance. The seller financing calculator (https://firstpassmemo.com/tools/seller-financing-calculator/) shows a monthly note payment of $1,165 against $2,200 of profit, leaving $1,035 a month during the note. Composite example, run through the seller financing calculator (https://firstpassmemo.com/tools/seller-financing-calculator/) | Price | $60,000 | | --- | --- | | Paid at closing | $40,000 | | Note interest rate a year | 6% | | Note term in months | 18 | | Monthly profit | $2,200 | | Monthly note payment | $1,165 | | Profit divided by the note payment | 1.89× | | Cash left each month while paying | $1,035 | | Total interest | $963 | | Everything you pay the seller | $60,963 | | Months to earn back the closing payment | 27.7 months | That works only if the profit is real: if it falls, you still owe the note. An earnout tied to profit or traffic shifts that risk back to the seller. See how seller financing works (https://firstpassmemo.com/answers/how-does-seller-financing-work-when-buying-a-website/). ## Frequently asked questions ### How much below asking should I offer for a website? There is no fixed percentage. Offer what your verified profit, after your time and missing costs, supports at the payback you need, and show the arithmetic. That may be at the asking price or well below it. ### When should I negotiate, before or after the LOI? Ask the questions that can change the price before a letter of intent, because the LOI often starts exclusivity. Price changes after the LOI should be tied to findings in diligence. ### Is seller financing a good way to lower risk? It spreads payment and keeps the seller interested in a smooth handover, but you still owe the note if profit falls. An earnout tied to results shifts more of the risk to the seller. ## Sources - Acquire.com, Biannual Acquisition Multiples Report (11 February 2026, updated 1 September 2026) (https://blog.acquire.com/acquire-com-biannual-acquisition-multiples-report-jan-2026/), read 7 October 2026 - FirstPass Memo, free buyer calculators (https://firstpassmemo.com/tools/), our own calculators; the formulas are on each page - FirstPass Memo, seller question bank, October 2026 (general checklist) (https://firstpassmemo.com/get/seller-questions-general), our own questions - FirstPass Memo, red-flag checker rules (https://firstpassmemo.com/flags/), our own rules, published as /rules.json ## Related - True payback calculator (https://firstpassmemo.com/tools/payback-calculator/) - Seller financing calculator (https://firstpassmemo.com/tools/seller-financing-calculator/) - How seller financing works (https://firstpassmemo.com/answers/how-does-seller-financing-work-when-buying-a-website/) - Maximum offer calculator (https://firstpassmemo.com/tools/max-offer-calculator/) - Questions to ask a seller (https://firstpassmemo.com/answers/questions-to-ask-before-buying-a-website/) - Glossary of listing terms (https://firstpassmemo.com/glossary/) - More questions buyers ask (https://firstpassmemo.com/answers/) Composite examples are invented and labelled. Figures from other sites are quoted with a link and the date we read them; FirstPass figures are asking prices and seller-stated profit, not sale prices. Informational screening only, not investment, legal or tax advice. ## Looking at a specific listing? Get a full memo — $79, pay after delivery. Paste the link; your memo arrives within 24 hours (Mon–Fri). $79, pay after delivery: we send the memo first, then an invoice. Human quick reviews cost $199–$390. --- FirstPass Memo is informational screening, not investment, legal, tax, accounting or valuation advice, and not an audit. Seller figures are not independently verified. HTML version: https://firstpassmemo.com/answers/how-to-negotiate-the-price-of-a-website/