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Earn Fast Money With Website Flipping

Updated on January 13, 2012

What is website flipping?

Website flipping is when you buy or create a website. With the intent of increasing the website's value and then reselling it.

Many publishers only see their websites as sources of revenue, each website is in fact an asset. The value of this asset increases as you put more time and effort into it.

Determining the value of a website

When you sell a website, proof of the following factors will be required by the other party.

How much money is the site making?

The most important factor in determining a website's value is the revenue, from that website. The value of a website is generally between 10 and 24 times it's monthly income. The less important factors determine whether it is nearer to 10 or nearer to 24.

Frequently people who flip websites, like to buy sites that are well designed, except for the monetization. They then change the site, so that it takes full advantage of it's traffic, greatly increasing it's monthly income and value.

Traffic

More traffic is better, but it is not only the amount of the traffic that matters, but also the quality of that traffic. The most valuable traffic is search engine traffic.

Page Rank

Page Rank is a measure of how important Google thinks a page is. Higher PR is better, but you need to check the internal pages of a site to. Just having a high PR on the home page, isn't enough. I reviewed some tools that can help you with that in free SEO software.

Domain name

It helps if the domain name means something and the site is organized around a niche. For instance http://www.travel-insurance.com is worth more than http://www.abcdefg.com.

Age

The older the site, the more it is worth.

Domain parking

This is when you register a domain name, not to build a site on it, but to resell it later.

What you want to do, is to create a home page, that states that the domain is for sale. Then you put down a few links to the domain, so the search engines index it.

There are two things that determine the value of a parked domain, the age (when Google first indexed it) and how good the keywords in the domain name is.

I work as a web developer and I once did a "for sale" page for a UK friend. It was a dating related domain and 2 years later, the dating sector, became very hot. He received a few offers and eventually sold it for 5,000 pounds, which was $6,500, at the time.

It cost him $20 to host the domain ($10 per year). So quite a good return on his investment.

Keeping your overhead down with the right web host

If you are website flipping, you don't want your sites to be, all over the place. What you want to do is to have a host that is good at moving web domain names and can help you keep your costs down.

In my opinion GoDaddy is the best option. Their Deluxe plan allows you to have multiple web sites, while only paying for the web hosting once.

Say you have 3 web sites. If you have them hosted with 3 separate hosts, it would cost you $5 a month, web hosting for each, so 5 x 12 x 3 = $180 per year. Plus $10 domain name hosting per year, for each. So thats $210.

If you have 3 with GoDaddyit would cost you 6.5 x 12 = $78 for the hosting. Plus $30 for the domain name hosting. So $108.

Buying and Selling Websites

Who do I sell to?

When website flipping, the best buyer for your site is someone looking for synergy with their business. For example: you might have a site about boots, a boot manufacturer could buy your site to allow them to sell their products directly to the public. Their business put together with your site, is worth more than either, on it's own. They would there for be willing to pay more for your site, than it's worth.

The worst buyer is a speculator. They try to buy sites cheap and sell them at a premium.

Where do I sell my site?

The first place you should try, is to sell it directly by placing a for sale link on your home page.

Next consider contacting players in your niche directly and trying to sell it to them.

There are several sites where you can list your website for sale, the free services tends to have more speculators, but you can do well there if you have a lower value site(less than $100,000).

For high traffic high value sites, paying to get listed is worth it.

  • marketplace.sitepoint.com - Auction site.
  • eBay - Everything gets auctioned on eBay including websites. But you need to be careful of scammers.
  • bizbuysell.com - This site specializes in listing real world businesses. But they also allow for listing website based businesses. Costs a few dollars to get listed though.
  • Digital Point - Free listing forum. Good place to look at the proof that buyers demand.
  • dnforum.com - Big on buying and selling domains.


How not to get Cheated

There a lot of scammers in the website flipping business. But if you follow a few easy rules you can avoid them.

  • Use an escrow service. How it works: When a site is sold, the buyer transfers the cash to the service. Then the seller transfers the site to the buyer. Then when both parties are happy the money is transferred to the seller. That way no one gets cheated.
  • Check that the content from a site that you are buying is unique by feeding the content into Google's search. Sites with unique content are worth more than copied sites.
  • Google the seller/buyers email address and name.
  • Google the sites name with the word 'scam'.
  • Google info:www.sitename.com to get more info on the site.
  • If you have doubts about whether someone actually owns the site, that they are selling, ask them to place a meta tag on one of the pages.

Some free tools that can also be helpful:

  • compete.com and alexa.com can tell you more about a site's traffic.
  • domaintools.com give you information about a sites history and it's owner.
  • aboutus.org can gives you additional information about a site.


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