{{deal.priceTagText}} {{deal.multipleTagText}} {{deal.ageTagText}} {{deal.newTagText}}Latona’s is a business brokerage that specializes in selling online businesses. They started as a domain name brokerage and auction house before expanding into their current form around 2008.
This brokerage is run by individuals with nearly two decades of experience buying and selling domain names, as well as online businesses. While they might not have the name recognition of an Empire Flippers or Flippa, there is a lot to like about what they bring to the table as a smaller business broker.
This Latona’s review is a deep dive into what they offer, the pros/cons of using them, and a look at whether or not they are a good fit for you.
Let’s get started!
3 Major Benefits of Latona’s
First, let’s focus on some of the major benefits of using Latona’s that have let them continue to survive and thrive in the online brokerage space.
Extremely Good Site Layout & Functionality
The site has a clean layout that is easy to navigate without being overwhelmed. There are a wide variety of filters that allow potential investors to sort through the listings based on business type, price, revenue, visitors, and more.
The home page also features the most recent listings, allowing frequent visitors to see what’s new at a glance.
The ability to sort all listings based on whether it’s a business or a domain portfolio is also a nice touch. The tools can be valuable for potential sellers wanting an idea of what their business would be listed for.
Though as with many tools like that on brokerage sites they can be a touch on the enthusiastic side to encourage sellers to make that jump.
Huge Variety of Businesses
The variety of businesses available is impressive. When they mention eCommerce these aren’t all dropshipping or FBA businesses. The listings run the gamut across the many different forms that these businesses can take.
The number of niches covered further diversifies this even more. Wine, travel, artwork, entertainment, fashion, software, cryptocurrency, and coffee were just some of the niches of the newest businesses listed.
This variety doesn’t just apply to the business type. This goes by value, too. There were businesses listed for as low as $50,000 with several multi-million dollar listings.
For investors looking for businesses that can give serious annual revenue, some diamond-level listings provide exactly that.
Experience from People in the Business
I talk all the time about having first-hand experience in building websites before moving on to buying and outsourcing. There are certain skills, knowledge, and abilities that only come from first-hand experience.
Having a brokerage run by people who have been hands-on in the business of selling domains, sites, and online businesses for years is a definite positive.
This lets you know the people running the listings aren’t just setting up an auction site and stepping back, but they understand the ins and outs of how the buying/selling process works.
Latona’s vs Digital Exits vs Website Properties Review
Latona’s compares pretty well versus Digital Exits or Website Properties depending on what the buyer/seller is looking for.
The best way to compare all three is to look at some of the most striking differences.
One that stands out immediately is that Latona’s is best for smaller business listings. Digital Exits focuses only on very big deals in the 6, 7, or 8 figures. Website Properties is another broker that prefers to work with large or very large businesses.
Latona’s tends to have the largest variety of business types for sale compared to these other two brokers. They cover a larger array of niches, and styles of business from FBA to domain portfolios, content sites, SaaS, etc.
Where might Latona’s fall short? The one big place where Digital Exits and Website Properties may beat Latona’s is with the commission.
- Latona’s commission is 15%
- Digital Exits commission is 10%
- Website Properties commissions vary based on business size with 6% for the largest businesses
These each have pros and cons, with Latona’s being fairly comparable. It is more expensive, it also appears a better option for selling smaller online businesses.
What Types of Online Businesses Are Offered for Sale?
Latona’s has quite a variety of different businesses on sale. While some sites focus only on content sites or FBA sites, Latona’s is open to selling a variety of online businesses.
This variety means many listings might not be right for what you’re looking for, but they offer plenty of options. Not every brokerage can say that.
There is a good variety of online businesses on sale from Latona’s. They emphasize a focus on:
- Content websites
- eCommerce businesses
- Domain portfolios
- Lead generation sites
- Membership sites
- SaaS businesses
A look over current listings at Latona’s showed just under 80 listings of online businesses that covered all of these niches. There were also Amazon FBA, dropshipping, and other styles of online businesses listed for sale, among many others.
Latona’s Commission Fees
Latona’s commission fees are 15% of the final sale number. So the cost is directly dependent on what the final sale price is.
This fee is high compared to many other brokers, but Latona’s also handles many businesses that other brokers would not.
Whether this is an acceptable percentage for a seller or not depends on the seller’s point of view.
The Buying Process with Latona’s
Here is a detailed step-by-step guide to the buying process with Latona’s.
1. What Listing Information Is Provided Publicly to Everyone?
Some basic information is going to be made public with listings. For Latona’s that includes:
- Description of the business
- Vertical/niche the business belongs to
- Annual profit
- Sales price
- Date the business was established
- First few sentences of the executive summary
2. What Listing Information Is Provided Privately to Buyers?
Much more information is provided to buyers who have a membership on Latona’s.
- Name and URL of the online site/business
- Income information provided by seller
- More details on business setup and operations
- Detailed executive summary of the business
- Any additional information provided by the seller
3. What Vetting or Due Diligence Is Provided?
Some basic vetting is done of businesses, however, the majority of information seems to come from the seller. There is mention of due diligence but the details are a bit sparse.
However, enough information is provided that the potential buyer should be able to do a detailed due diligence of their own to check on the claims provided.
4. How Is the Migration of the Business Handled?
Detailed instructions are provided for how the migration needs to take place and what steps the buyer needs to take. Latona’s does not handle this technical side of things, so it’s important to have a good tech guy there to walk through the steps if this isn’t your strong point.
The actual technical steps need to be handled by the buyer.
5. What Post-Sale Support Is Provided?
Post-sale Latona’s will assist with instructions and guidance on the transfer of the business, release of the escrow, and completion of the sale. Past that, the buyer is on their own.
The Selling Process with Latona’s
The selling process with Latona’s will take 3-4 months on average, but it is a fairly straightforward process.
1. Account Creation
A seller needs to create an account with Latona’s. This involves answering some questions, going through business valuation, and this helps set up the listing with the information provided.
2. Connection to Potential Buyers
Latona’s works to connect with potential buyers and to get attention and push for the highest selling price possible.
The more information provided by the seller, the more information they have to try and connect with the ideal buyers for that particular online business.
3. Vetting & Making a Deal
Vetting takes place and it is up to the seller to provide the information requested and take care of any follow-up questions or requests. Oftentimes a buyer may contact Latona’s wanting more information before making a decision, so this can be a process.
This flows into contacting prospective buyers and making the best possible deal.
4. Terms of Sale Are Agreed Upon
Ideally, the high price ends up being the sales price, but some negotiations might take place. When agreeable terms come up the terms of sale are agreed upon and written into an official contract between the buying and selling parties.
5. Sale & Post-Sale Work Is Completed
The actual sale takes place and the important post-sale steps like transfer of the business, purchase price being put into escrow, and then the release of escrow all take place next until both parties receive their side of the deal.
FAQs About Latona’s Broker
There are a few common questions that come up about Latona’s. Here are the answers to the most asked ones.
How big does your business need to be to use Latona’s as a seller?
The lowest listed annual revenue I could find was in the $19,000 annual range (listed at $50,000 asking price). This was the smallest, although the search functions indicate that businesses in the $10,000 a year and under range have been accepted in the past.
How much experience does Latona’s have with online business sales?
Nearly 15 years of experience with selling online businesses as broker, which moves up to over 20 if you include the years where they focused mostly on domain names.
Is Latona’s better for buyers or sellers?
There seems to be a higher satisfaction with sellers using Latona’s versus buyers, though it’s worth noting there are plenty of positive reviews from both sides of the deal.Â
Better communication during the process seems to be the highest wish from both buyers and sellers.
Is Latona’s Legit?
Several things go well in Latona’s favor. They help sell a wide variety of online businesses including several smaller ones that other brokers might not take the time to work with.
They have a reputation, have been established in the space for a long time, and are run by experienced individuals who understand the practice of buying and selling businesses.
This wouldn’t be a full review without mentioning that there have been some red flags. While nearly every business will have bad reviews when online long enough, it’s still worth looking at the Site Jabber reviews of Latona’s.
The reviews are overwhelmingly good, but there are some comments in the bad ones that should cause pause.
They also confirm something crucial I always talk about: never skip your own vetting process just in case the broker misses something.
The 15% commission is also very much on the high side of things, so making sure Latona’s is the right broker for a seller is a good move.
Pros
- Very good variety of businesses listed
- Wide financial range of businesses listed for sale
- Large percentage of positive reviews
Cons
- Listings tend to stay up for a longer period of time than with some of the big name brokers, with 3-4 months being a reported average from many sellers
- Not a lot of support given to the seller – while emails tell what to do the support on the technical side could be much stronger
- High commission rate (15%)
- Not as much support during transfer process as many buyers/sellers would want
Wrap Up
Latona’s is a good broker to look at when it comes to buying or selling an online business. There is active support for smaller businesses to sell while buyers get a wide variety of choices to look at.
While Latona’s isn’t as widely known as names like Empire Flippers, they have over a decade of experience and offer plenty of opportunities for buyers and sellers alike.
