The most enterprising entrepreneurs are cashing in by thinking outside of the box. For instance; everyone seems to want to cash in by monetizing their blogs at the moment, and yes it can be done – but how many of these people are actually treating it as a new business and putting in the required time and effort? How many are expecting quick returns and giving up before they get there? A lot! There are literally thousands of unfinished projects out there just waiting for you to step in and take over…
Website flipping (buying and selling websites) is big business, but it’s not as difficult as you may think. If you have an eye for design or improvement there is serious money to be made; but even if you don’t, you can still turn a decent profit.
Flippa.com is the most popular place to begin this venture; it’s like an EBay for website auctions, although EBay itself now has a section for selling websites. You will get a higher price for your site on Flippa but there are fees involved, for a free service head over to the market place on Digitalpoint. You won’t make as much from the sale but it’s free to list and is a good place to learn the ropes without risk.
As soon as you have learnt the ropes and gained some confidence in your abilities, you could make a profit of anything between a few hundred Euros to a few thousand just from simply flipping one website.
Once you’ve accomplished your first successful sale and no doubt learned a lot from the experience, it’s a case of ‘rinse and repeat!’ There is no limit to the number of websites you can flip at any one time. After the initial few months of building and improving your sites you can expect to be selling one or more every week. You will need patience in the meantime though in order to get the ball rolling.
Depending on your initial budget and intended goals (and of course how seriously you wish to approach this new venture) there are several methods to begin your website flipping business:
Method 1 – Start from scratch
This is going to take time and effort. Not for those who want a quick turnover (scroll down for quicker methods), but for those with little or no initial budget it will be the most cost effective.
For this method you will need to a domain, hosting, content and possibly have it monetized. If this is all new then head over to the make money blogging page for a full guide as to how to get started.
After you have built your website you can sell it straight away or wait and build until you have proven traffic and sales for a bigger price. Proven and aged sites will fetch a lot more than new ones as they are much more attractive to those willing to invest large sums to get their business off the ground.
Method 2 – Improve an existing site
As mentioned earlier, there are thousands of sites that have really great potential to be good money makers, but the owners of the site either have very little knowledge of SEO or just didn’t have the time/motivation to see their project through.
With a little keyword research and rummaging around on page 9 or 10 of Google searches you can find plenty of such sites and simply approach the owner with an offer (most sites have a contact us page) chances are good that they will be only too pleased to get shot of the site.
With your new site you will then need to improve on it by adding some quality content, building on the backlinks and work on getting some decent traffic before it is ready to sell on.
Method 3 – Jump straight in!
If you have money to invest then why not head straight over to Flippa, digital point or EBay and buy an aged and successful site for sale. Look for ones with a poor sales pitch and think of how to improve on it. Often the money is made or lost in simple techniques such as this. You can sell anything if you can develop the perfect pitch to the right buyer!
No need to wait with this one, if you can make any improvements to the site then go ahead, if not just list it straight back on with a better sales pitch (probably better to use a different site or search around related forums for people looking to buy, the more you do the easier this will become). Important point to note with this one is that before buying the site you will have hopefully Googled it and checked the stats, etc., so bear in mind that when you re-list potential buyers are going to be researching it too, it won’t look good if the original auction comes up on Google and they see you only bought it a week before, most digital point auctions are listed!
There is more risk involved with this method as you need to make your investment back plus profit, so not for the faint hearted. And remember the golden rule to never risk more than you can afford to lose!
Method 4 – Domains only
This method only involves a little keyword and niche research, better for the lazier entrepreneurs! Keep your ears and eyes open for the next big fad or trend, try Googling “announced” or “coming soon”(use Google news rather than the normal search feature); keep up to date with all the latest news, gadgets and celeb goings on and also stay in touch with the Japanese market (they are always two steps ahead, especially with electronics and gadgets).
As soon as you hear of the new, latest “must have”, buy some domains centred around the product keywords and sell them on as soon as the product has launched. Selling domain names only isn’t as profitable as it would have been 10 years ago so quantity and consistency is the key to doing this successfully.
With a bit of experience under your belt you can expand on this idea by hunting for valuable dropped domains, sometimes big companies simply forget to renew their registration or go out of business and let it drop. Dropped domains also have the advantage of being aged so will be more valuable.
As with any new venture, start small and work upwards, site flipping takes a few goes to get the hang of it properly. Set your goals and steadily work towards them. Do some research to fully understand what you are getting into. Website flipping is as much about judgement, instinct and sales tactics as it is about design, site age and page rank!
Check out www.sedo.com, you can buy, sell or park domains. Lots of support for beginners.
As a loose, general rule a site with search engine traffic, age and earnings will go for anything between 10-24 months revenue (dependant on niche popularity, your sales technique, etc.). Newer sites can sell for 2-3 months revenue. Brand new sites are really dependant on design(go for premium wordpress themes if you can afford to), content, etc. A good figure to aim for would be around $200 on Flippa (don’t forget there will be fees incurred) or approximately $50 on forums or sites such as Digital Point.
Good luck and happy flipping!