How to do Website Flipping?

Flipping websites can be a Business or Hobby. For someone it may be a Business while for someone it may be a Hobby. So How to do Website Flipping for Profit? How you can also do profitable website flipping?

Well, let me discuss the example of my friend. One of my friend is a Website Flipper. He flips any web property such as blogs, forums, websites, web businesses etc…. There are so many ways to do website flipping. Flipping websites is entirely a new Business Opportunity and many people around this world are making literally 6 figure Income from it.

There are many ways to do website flipping but broadly they can be divided into two. Both of these ways are exciting and adventurous. So we will today discuss these two broad varieties of flippers.

01) Developing a Web Property Out of Scratch & Flipping it for Profit -

My friend falls into this category. Some people buy hot Domains & Sell it for profit. Say for Example, my this friend has recently bought 2 domains – GoogleAnalyticsBlog.com & BlogFlippa.com. The most famous site to buy Domains is GoDaddy.com

Most of the website & Domain Flippers prefer GoDaddy.com because of its simplicity & vibrant features. It is easy to put Auction for your Domain & transfer your Domain to third party on GoDaddy.com

Now My Friend will develop both of the above Blogs for few months. He has invested US $ 10 for each domain &  Web Hosting Fee is US $ 10 per month. So his total Investment is around US $ 20 (Rs.1000) for each Web property (Domain).

After few months, he will put these Blogs for Sale on various Auction Houses. The Best Marketplace for web properties on the web are SitePoint.com & Flippa.com

He will sell both of these Domains from anywhere between US $ 1000-1500. And that is 50-75 times profit. That is 5000-7500% return on Investment in just 2-3 months. So Rs.1000 invested in one web property will become anywhere between Rs.50000-75000 in just 2-3 months.

It is as easy. But for this you have to do your mind work before you invest your money in buying any Domain. See my friend has chosen 2 Domains – GoogleAnalyticsBlog & BlogFlippa. Both of these Domain name contains popular keywords such as Google Analytics, Blog & Flippa. Flippa is a very popular keyword. and any domain containing this keyword can be worth of thousands of dollars. Because Flippa is recently launched (22nd June 2009), Marketplace for Web businesses.

So My friend will flip both of the above Blogs and than re-invest this money in some new Venture.

02) Buying an already Established Web property, Monetize it & Flipping it for Profit -

This is advanced way of flipping websites. It requires higher skills, higher investments, Higher risk & Higher return than the above method. Some Website flippers have made fortunes by flipping couple of web properties (Domains, Blogs, Websites, Forums…etc…) and now they are sitting on the cash pile.

They have lots of spare money to invest. So What they do? Well, they will buy already established web Businesses & properties out of their money. After that they will work hard to increase the web traffic, popularity & Revenue of that web property & finally they will sell it to another buyer after few months or years for Huge profits.

It is exactly same like flipping Businesses. Means here you MUST need all the expertise to monetize the web business that you have bought.

So This is how you can do website flipping. Some people are master in developing successful businesses and selling it to others. And these people make fortunes in their lives…!!!

[DISCLOSURE: I have recently invested my money in buying a Domain Name eFlippa.com. I have invested US $ 20 for 2 year Domain Registration. I have not bought this Domain solely for the purpose of flipping but after buying this Domain, I received so many offers for this Domain. And let me tell you honestly that all of those offers were very mouth watering. So if Today I just sell my this Asset (eFlippa.com) than also I can make more than 100 times of my Initial Investment. This is the power of Information Age.]