Flipping websites has become a great business opportunity for entrepreneurs looking to get in on the burgeoning internet marketplace. Flipping virtual real estate is basically the same as flipping physical real estate. There are criteria for the best sites to buy and basic guidelines for what to do to a site before it will sell for its highest value. All of these things can be broken down into three basic categories that every site-flipper needs to know; what, where and when.
What Sites Should You Buy?
If you’re still new to flipping sites, you’ll want to proceed with caution. This essentially means limiting your purchases to sites that are priced low and yield only a small profit. You may want to take the risk and dive right into the big league but it’s important to gain some experience first. Low priced, low profit sites are your best chances to hone your site flipping skills while avoiding potential financial losses. If you search at the right places, you will find blogs or small websites that are already turning up a modest profit but don’t cost too much. You get to try for yourself how it is to turn a site around without having to start from scratch. Even if the profit is not that big, the more significant payout is in the experience.
Setting yourself a budget, around $200 for newcomers, is a great way to limit the websites you’re shopping for. It’s important that you avoid sites such as turnkey domains at first. They are appealing for being fairly low-cost and completely built, only requiring the new owner to “turn the key”. However, they may be poorly built and not optimized to pull in traffic. Getting them up to snuff and ready for resale can require a lot of work and knowledge.
Where Should I Buy Sites?
Once you know what to look for, you have to know where to go. Buying websites can be intimidating due to the wide range of places you can buy from. However, there are some places which are much better for purchasing than others. You should start off buying from the big, popular websites. This will give you the widest range of sites to choose from so that you can get the best one to match your needs. Flippa is one of the largest marketplaces for site flippers. Places like DigitalPoint and Warriors Forum also offer the opportunity to purchase and sell sites as well as giving you access to a member’s forum where you can learn the tricks of the trade. Not only are these sites important if you’re looking to buy and sell your sites, but they are tremendous resources that you should immerse yourself in before you ever make your first transaction.
While you want to shop around at multiple sites, it isn’t a great idea for inexperienced flippers to shop at non-specialized sites. While places like eBay and Craigslist might offer domains for sale, they aren’t where most experienced users buy and sell their sites. Because of this, they can be an unfortunate haven for people looking to pawn off shoddy websites on the unknowing.
When is the Right Time to Sell?
Knowing when to sell your domain is essentially a matter of experience. The entire point of site flipping is to buy a site which is performing poorly or has little visibility and turn it into something that someone wants to own. Once your site is holding steady traffic or turning a decent profit, it’s time to sell. This is all relative to the amount you paid for the site to start with. A good benchmark for a site that has reached its selling point is when it will make back a buyer’s investment within 6 months. That benchmark can also help you determine the selling price, although you will also want to do plenty of research to make sure that your site’s price makes it competitive with similar sites.
You can easily spend hours, maybe days, reading up on flipping virtual real estate. However, the best way to learn is to actually get involved. With cheap, low-risk sites you can get hands-on experience in the industry without risking your money or spending too much time. The toughest part of the business is making that first purchase and getting over the nerves. Once you’ve figured out what you are doing, you’ll understand why so many people have turned to buying websites to supplement or even replace their day job.
Filed under: e-Business
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