Just like flipping brick-and-mortar real estate, it’s no secret that one of the fastest ways to make quick bucks online is through website flipping. Many entrepreneurs are using this method to earn a lot of money every day. You could make anywhere from a few hundred to potentially thousands of dollars per flip.
If you’re looking to go about buying and selling websites to make money, this article will cover the basics of the process so you can get started making money.
Read More – How We Created A Niche Site From Scratch And Sold It For More Than $21k
The formula for success is pretty simple. Start by buying low value websites, make some improvements to the website, build up its traffic, increase the monthly revenue and then cash out for a hefty profit. Most sites actually only need a little work, and they can then be sold for big profits.
Here are the basic steps to guide you on how to make money buying and selling websites.
- The Investment
Just like any other business, buying and selling websites requires an initial investment. In business, no investment is guaranteed regardless of how attractive the opportunity seems to be. How much money can you afford to lose in your new venture? It’s unlikely you will lose your investment but there is an outside chance things could go bad. It’s essential to be honest with yourself.
Once you know the amount of money that you are willing to invest, also think about how much time you’rewilling to commit to website flipping. Even though this type of business is passive, there are things that you’ll need to do to increase the website value. You need to factor that time into your other commitments.
- Finding a website for sale
It’s time to buy a website. You need to buy a website in what’s called an evergreen niche.”These areniches don’tdry up andare fueled by human needs and wants that remain constant. Examples include clothing, consumer electronics, car insurance, sports, health and beauty.
One of the advantages of buying an already established website is that no matter how much competition there is, the website has a performance that you can measure. For example, if the website has made $2,000 a month in revenues from the search engines, you will know the keywords the website is ranking for and what changesneed to be done to optimize the income.
Where can you find websites for sale? Here’s a list of places to buy sites:
- com – outstandingat buying and selling of valuable websites.
- com- a popular marketplace for website flipping. Here you can get some great deals on websites that can be easily fixed and flipped.
- eBay- not as ideal as the two mentioned above but you can buy sites cheaply and make some good profits when selling.
- Website Brokers – these are your best bet for eliminating scams from the sale listings.
Marketplaces can have some deals but also have plenty of scams, or sites selling for more than their worth. It’s always wise to do your own research to see the kinds of websitethat are being sold and if the selling price is reasonable. There are various sites you can use to evaluate how much a business should be selling for.
- Evaluate the website
Once you find a site that you are ready to invest in, it’s vital that you first evaluate it before making an offer. Look at the areas that would need improvement. What new features would you need to add? Are there any usability issues? What kind of help would you need to run the site and what needs to be done to double its value?
- Conducting a thorough due diligence
- Traffic and Revenue. Ask the owner for screenshots of traffic and revenue from trusted sources such as Google Analytics. Are there instances when the traffic was down? Are the traffic sources evenly distributed or does the site depend heavily on one source? Examine the referring domains, are there any owned by the seller and will these links remain after the sale?
You can video call with the seller while he is logged into their merchant or affiliate account to prove that the revenue is coming from the claimed associated account.
- Chat with the seller. Speaking with the seller via phone or on video chat is one of the best ways to build trust. It will also increase the chances that the seller will be willing to work with you when it’s time to make an offer.
- Hire a professional. If you are not confident with the whole process, it’s important that you hire a licensed website broker. Most of these brokers will offer services to both the buyer and seller and also help you with the due diligence.
- Make an offer
After you’ve found the right website for you, it’s time to make an offer. Start with your lowest offer but make it high enough to get the seller’s attention. To give you an idea, websites are usuallysold for about 3x their monthly income.Work out that number, and then bid lower so you have room to negotiate upwards and still get a good deal.
Giving valid reasons why you are offering a lower amount by highlighting some of the website’s shortcomings can help your cause.
- Make improvements
After buying the website, it’s time to do a makeover – optimize it for the search engines, give it a more professional design, add content, etc. Overall, you will need to make the website user-friendly and attractive. The first thing a visitor will notice visiting a website is its looks, thus smoothing the look of the website will improve the user experience. Diversify where the traffic is coming from or even add more products or services to be sold.
Significantly improving the website can take time. The longer you sit on the site making improvements, the more it’s likely to grow. You will also have a more solid and longer established history, which will likely boost the price you can demand from buyers.
When you are ready to cash out, the next step is to find a buyer. Remember that you’ll now be the one to provide proof of monthly revenues, organic traffic and other requirements the buyers might request. Make sure you have the records you need to justify the value of the site.
Your bargaining power will determine the profits you will get from the sale. You’ll need to decide the lowest amount you’ll accept to cover the time and effort you’ve put in to building the website.
You can save yourself a lot of time and hassle on this step if you hire a brokerto sell the website. This will get your website in front of a lot of serious buyers quickly. Most will give a free valuation and advise you on how to sell it for maximum profits if they can’t take it on.
You can of course choose to do it yourself and relist the website on one of the marketplaces. This is usually a cheaper option in terms of commissions but you are likely to sell your site for less than if you choose a broker.
Be aware, there are not only scammers selling but also buying websites. Don’t make information public that you don’t have to, don’t handover passwords until you have closed the deal and always use a reliable escrow service.
There are a ton of scammers in the digital world, and they are always looking to find unsuspecting sellers they can take advantage of.
It’s clear that you can make big money from selling websites. Buying and selling websites can be a worthy venture, but like the brick-and-mortar business, it’s not without risks. The key is to research and verify everything before you buy or sell and have solid plans for improving the sites you do purchase.