Saturday, October 3, 2009

Website Flipping: How to Buy a Website & Flip it for Profit?

Website Flipping: How to Buy a Website & Flip it for Profit?

Website Flipping is a great Business Opportunity but unfortunately many people in this world still don’t know that What is Website Flipping and How it works? In this Article, I will teach you that How you can Buy a Website and Flip it for profit?

First of all let me tell you in simple language that, What is Website Flipping? Well, Flipping means buying low and selling high. You MUST have heard the word Real Estate Flippers. A Real Estate Flipper buys a property at low cost, fix it and than sell it later on for higher profit. Website Flipping is exactly the same.

Here, The Internet Entrepreneur buys the website at low price. Later on he changes its template and look, market it well, increase its web traffic and later on SALE it for much higher profit. May be 1000%…!!!! Yes, This is true. Here the rewards are as high as 10 times. And Minimum return is you will at least double your money.

So Which are the Best Places on the Internet for buying websites? Well, there are 2 places on the internet where you can buy and sell websites. I mean these are the market places for buying and selling websites.

01) Flippa.com

02) SitePoint.com

Both of the above are the reputed market place for buying and selling websites. Literally millions of people hang out every month to buy and sell website businesses. There is a small listing Fee.

Now, the First thing you have to remember before buying a website is, You have to do perfect market research of the Niche in which you want to buy a Website. After that, once you find a good deal on Flippa,com, please check and verify all the parameters of the websites such as Web traffic, Page views, Unique Visitors, Alexa Rank, Google Page Rank, Monthly Revenue, operating cost of the website and any other small detail about the website.

As a rule of thumb, You should not give more than 10X of the yearly revenue of the website. Say for Example, This Blog. This Blog is generating US $ 100 per month for me. That’s US $ 1200 per year. So The fair Valuation of this Blog is not more than US $ 12,000.

If the buyer don’t want to sell his web property at fair price. Simply forget the deal and find new deal. There are lots of deals in the market.

Now, Once you buy a Website, From the very first day, Your job is to market it well, change its template and look and grow it’s reader base. In case of Blog, You can simply higher a team of writers or simply outsource the content. You can also spend money behind Google AdWords marketing as well.

Once the website is monetized well, it’s ready for the SALE. The Successful website flippers I know on the Internet usually hold any website for Minimum 18 Months. However, there is no as such rule. But the returns will be higher if you hold that Asset for at least 1 year because in 1 year span, the organic traffic of the website will also grow naturally plus the search engine rankings and natural links will also build during this time. And all of this will increase the valuation of your website.

Now, once your website is ready, It’s again time to go to Flippa.com. They will charge small amount of Listing Fee. (Usually $ 10-30 per Listing). Ideally You should put the Auction for 30 Days. Please Include all the Snapshots of website statistics in your listing. This will increase buyer’s confidence on you. Say for Example, don’t simply say that the website is earning US $ 500 per month. Instead of that put a Snapshot of your earnings of last 3 months.

Finally, Be Ready for Negotiation. It is obvious that, your work can be worth of millions for you. But for a buyer it may be just US $ 10,000 only. So get ready for 10-20% Discount also.

Once buyer agrees to buy your website, go for any one of the following 2 options.

01) Paypal.com

02) Escrow.com

Once the buyer pays you money, transfer the Domain Control and Hosting Control to the buyer. The Buyer will download all the website on his Host and take a total control over your website.

Final Words…..

So now you have sold your website and you have a Cash on hand. You are Cash rich now. I know that it’s a great feeling. So It’s a party time. But my advise to you is that, Don’t blow off all of your money behind parties. Because the money that you have just made is the end product of your long hours of working behind developing that successful website business. So Keep some money aside for your next Website Flipping Project.

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