flip websitesFor years now we have seen how people buy real estate, invest money into the property, and then resell it for a profit. Website designers can do the same. Buy a website which has potential, invest time and a little money, and then resell it.

To buy websites, perspective buyers need to consider buying a site which already has traffic for a product or service the owner sells. Another idea is to buy a site to better the advertisements on the site for increased optimization. Many sites sell a good product but have poor search engine optimization or online marketing. Poor traffic means owners may be willing to sell.

Definition

Flipping a website happens when an individual purchases a ready-made website or creates one from scratch, adds valuable content, and develops the website until it has been rehabilitated into a profitable website. The owner then sells the website for about three times or more the initial investment of the site.

Website flipping comes from the term in the real estate business where investor’s purchases property, renovates it, and then sells it three times higher than the initial investment. Designing a website is another option. Create the site, add great content, and a way for the site to generate income, and then flip it for more than the initial investment.

Benefits of Flipping Websites

Flipping websites can be beneficial for website owners. The first benefit is that a low capital investment is needed. Property flipping or domain flipping might require a more expensive investment. The second benefit is that the website owner can actually make money on the website while making the necessary improvements to the site. Housing properties on the other hand can only make money after improvements are made. However, with websites can still be fully operational and generate a monthly income while rehabilitation to the websites occurs.

Risks of Flipping Websites

No one can promise that buyers will purchase the website for the asking price. If the domain name is poorly chosen or the content is poor, then buyers will keep looking for a safer investment. If for some reason the website cannot turn a profit, it is not likely someone will want to buy it.

Sellers can also be deceitful about what their selling. A buyer can purchase a website at what seems to be a reasonable price only to discover later the value of the site is worth less. Buyers should research and ask questions before purchasing.

Flip Membership Only Websites

Don’t just limit purchases to income generating websites, membership only websites earns income as well. Create a website or purchase an existing website geared for a specific audience which can generate cash flow by monthly fees and by flipping. Once the website is purchased, value is added to it, and then it is sold for a profit. There are many different types of website clubs on the Internet dealing with particular topics such as, genealogy, high IQ’s, writers of a certain genre, readers of a certain genre, building contractors, fan clubs, and many more.

Purchasing Websites

If capital is available to spend on a professionally designed website, then shop around on the Internet and invest in one. However, it is less expensive to create a site. With a little imagination and designing experience a membership only website can be fashioned for a fraction of the initial investment and sold for a high profit.

On the homepage, advertise the benefits of becoming a member. Have a message board for like-minded members to chat with one another. Offer a newsletter to members and offer more information regarding the topic of the website. Write a book on the topic of interest and publish it as an e-book. Each person who signs-up to become a member will receive the link for a free e-book.

Tips and Tricks

  • The least expensive way to flip a website is to build the website and write the content yourself. If you do not have the ability to do one or the other, partner with someone who does.
  • Research the premade website you’re interested in purchasing. The site should have decent traffic statistics and generate a monthly income.
  • Drive traffic to the site by adding pay-per-click advertising, article marketing, forum marketing, and other advertising methods.
  • Potential buyers will want to purchase an established website. Make certain the site is earning income before trying to flip it.
  • Sell the website to the highest bidder, and then repeat the process.

Steps to Make Buying and Selling Domains and Websites a Reality

  • Research potential websites to buy. Research auction sites to browse for websites to buy. Research books, online advice, or ask a mentor on how to purchase viable websites without being cheated.
  • Become educated on websites
  • If you haven’t traded in websites before begin by trading small with cheap websites until you become familiar. Don’t risk a big investment.
  • One way to gain experience is by purchasing turnkey websites for sale and re-sell them for a profit. Go to auction websites where ready to use sites can be found and bought.
  • On many auction sites, you can subscribe to receive notifications of expired websites. This is good because owners who have valuable websites who might forget to renew before the expiration date. This means you can purchase a more expensive sight for a low price and re-sell it for a higher price.
  • Browse auction sites for suitable a website to purchase. The auction site should allow key word searches and it must return similar domain names which are available.
  • Park the site on classified ad sites which have a similar theme to the purchased website. On some sites, after purchase has been made you will need to pay a small percent to the website for the privilege of advertising on their site.
  • Add value to the website. Make any changes that will increase online traffic or income.
  • Sell the site. If you purchased the website from an auction site, return to it and post the website to the listing. The reason is that the place where you purchased the site determined the market value, so any enhancements will create a higher market price and deliver a profit. There are auction sites such as Flippa.com (https://flippa.com/) where you can see your website. If you want to get the most for your website you can consider selling through a website broker. You will pay a higher fee usually around 10% of the sale but many times you can get 3x net yearly profits rather than the 10x monthly profits on sites like Flippa. I have used Websiteproperties.com (http://websiteproperties.com/) and have done very well selling websites through them.

Hope this helps,

Related posts:

  1. Sell Domains & Websites for Others to Make Money
  2. How to Make Money Writing
  3. How to Make Money with Google
  4. Make Money Selling Virtual Real Estate
  5. Make Money Blogging

(1) comment

Hannah Harding says:

April 19, 2012 at 5:31 pm

Almost everybody is using the Internet, if we want something we rushed in front of our computer and purchase it through the Internet. That is why most business have their own website. But not all businesses are into the latest technology. Maybe that is why this website flipping was discovered. What I understand about website flipping is that someone will design a website and then someone will purchase it. I am quite interested on how this website flipping works. Maybe you can help me by posting more articles about website flipping. I would surely appreciate it.

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