In this post we will be looking at how to make money online from website flipping. We will cover the following points;
- What is website flipping?
- The benefits of flipping websites.
- How to start buying and selling websites.
- Alternative options to make money from websites.
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What Is Website Flipping?
Buying and selling websites in order to make a profit is known as website flipping. It’s main objective is to buy a low priced website that has potential and develop it to unlock it’s potential. Then sell it on for a large profit.
This is effectively another form of eCommerce where you are buying and selling online. Except there are no physical products changing hands, it’s just a website. Alternatively there are other ways of making money including selling digital products online.
Find websites that already make money but still have more potential to be further developed to generate more money. This may be achieved through driving more traffic to the site for instance.
How To Flip Websites
First you’ll 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 and if there are any content gaps that can be fixed. Content gaps are areas of missed opportunities relating to the content. If topics that are highly relevant to the site but have not been used, there is potential to exploit these gaps. You want to avoid sites that have exhausted all possible topics relating to their content as there will be little new content that can be added.
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 Sell Websites
There are lots of specialist online marketplaces for buying and selling 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 Website Flipping
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 that is 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
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’ll have to ensure your SEO strategy is working and that the site is proven 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.
Websites can be either built from scratch or bought and improved, then sold on for a profit. The buying and selling of websites to make money 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 that can be started online which allow additional sources of income. Explore more online business opportunities from home.
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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