Have you ever wondered how people make money by flipping websites? Flipping a website is actually not as complicated as it sounds. In this post, we’ll take a look at the basics of website flipping and how to buy and flip websites.
What Is Website Flipping?
So first let’s take a look at exactly what is website flipping. Website flipping is the process of buying, improving, and selling websites for a profit. Website flippers typically buy under-performing websites, make improvements to them, and then sell them for a higher price.
To make a profit from website flipping, you need to first identify websites that are undervalued and have potential for improvement. Once you’ve found a website that you think you can improve, you need to buy it and then make the necessary changes. Once you’ve made the improvements, you can then list the website for sale and hope to make a profit.
How To Buy And Flip Websites
To buy and flip websites, you’ll first need to conduct thorough research. Not every site for sale makes money or can even provide much potential. Don’t take a sellers sales pitch at face value, ensure you conduct proper due diligence.
You need to see evidence of traffic sources, monetization methods and revenues generated etc. The website might be nicely designed but is the idea behind it actually worthwhile? What niche does it operate in and how much future growth potential does it have?
Also look at what potential there is to grow traffic. Are there are any content gaps you can fix? Content gaps are areas of missed opportunities relating to the content. If topics that are highly relevant to the site have not been used, there is potential to exploit these gaps. You should avoid sites that have exhausted all possible topics relating to their content as there is little new content to add.
Once you’ve settled on a site, you can put a plan together of how you will improve it. This will depend on your strategy and the site in question but mainly you’ll want to increase traffic and generate more revenue from this traffic.
Identify websites that have more potential to increase earnings. This could be through driving more traffic to them and to plug any content gaps to create more monetization opportunities.
Selling A Website
Remember your website is a business you are selling, not just a product. Other people are looking to buy it in order to generate revenues from it in future therefore they can demand high valuation multiples. This is the amount of times your revenue a buyer is willing to pay for your site.
This will vary depending on the type of site, it’s niche, traffic, revenue source, current revenue generation and future potential to a buyer.
Where To Buy And Flip Websites
There are lots of specialist online marketplaces to buy and flip websites, businesses, domains and digital services.
Online marketplaces such as Flippa are popular for selling websites, domains, social media channels and online businesses. Another good option for buying and selling eCommerce websites such as dropshipping and print on demand stores is Exchange Marketplace.
Benefits Of Flipping A Website
There are lots of benefits to buying and selling websites. As everything is online this means you can work from anywhere in the world. It is not like traditional buying and selling of goods where you would require a physical location to store items. All you really required to start is a computer with internet connection and a web hosting service.
It also doesn’t require a lot of money to start – websites with good potential can be bought for as little as a few hundred dollars. These can have the potential to sell for thousands of dollars, many times more than purchased for. This can make it a highly profitable business.
Low start up capital requirements and no geographical restrictions means website flipping has very low barriers to entry. This makes them one of the most ideal online business opportunities from home to take advantage of.
Alternative Ways To Make Money From Websites
There are several other ways to make money from websites without flipping a website, we’ll take a look at a few methods below.
Build From Scratch
There are alternative options for making money from websites. Instead of purchasing an existing website, you could also build your own from scratch and then sell them to make a profit.
Building your own website will take more time to reach the stage where it is suitable to sell. You have to ensure your SEO strategy works and that the site has proven methods to generate the right traffic and revenue. But building a site from scratch gives you a blank canvas and complete freedom to build whatever type of site you wish.
Buying a website can cut out a lot of the initial legwork as it will have had time to grow and become established. You have a solid foundation on which to work and improve.
There’s no right or wrong way and it will come down to personal preference. You can of course do both. WordPress is a great place to build and host a website.
If you do not wish to trade websites you can still make money through running them. Websites offer several ways to make money with the most common being from advertising revenue and affiliate marketing. These can offer a good source of passive income. Read more about how to make passive income from a website or blog.
Website Flipping Conclusion
You can either make money from running a website such as through advertising and affiliate marketing or by selling websites.
You can either build a website entirely from scratch. Or buy an existing website, improve it, then sell on for a profit. When you buy and sell websites to make money, it is known as website flipping.
Website flipping is a very accessible business due to low costs of entry and an entirely online business model. There are lots of other types of businesses to start online to create multiple sources of income.
Before starting any business you might like to read the following blog post covering the 16 common business mistakes to avoid.
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