Making money from buying and selling websites can be so intriguing due to its huge gain. However, it is also accompanied by some risks. So, for a newbie wanting to purchase a website, it is advisable to get a professional experienced in website flipping to assist you to purchase a new website. What is website flipping? Website flipping means buying, improving and selling a website to make a profit. Buying a website is not different from an investor buying a property that is undervalued.
The investor bought the house at a lesser worth, renovate it to increase it worth and sell it at a larger price. That’s is just an illustration of how website flipping works as well. An experienced and smart website flipper buys an undervalued existing or build starter website, improve it, and sells it to make a profit. However, building a starter website from scratch can be so tensed and may require more money. It is advisable to get an established website. This is because an established website has performance history which you can set as template for improvement. For example, you can easily find the keywords it is ranked for, its revenue source, and discover instant ways to earn income.
Well, the process of buying and selling a website to make a profit from its sales follows a definite step. This steps will guide you on way forward in getting a new website. The processes are as follows:
Identify and take note of your money and time limit:
The first thing to consider is the amount of money you are putting into buying it which should be what you can afford. Even though, your aim is impressive but it still comes with inherent risks. If you already have a site, it is advisable learning ways of making money before getting another. After deciding on the amount you are spending, then you need time dedicated to working on it. There is a high probability that the site you will be getting is passive.
Niche type:
There is a need for you to get opinions from professionals as to domains of website is the most valuable. Moreover, there is a need for consciousness as to what type of niche you will be working on your website. Ensure you get evergreen niche which is characterized by popular and long-term topics which consist of different sub-topics. This is worthy than working on niches that have an expiration date, are short term or the topics are irregular. Examples of evergreen niches are beauty, health, business, finances, sport. Moreover, introduce niches that you have interest in so that you will have the zeal to work when it is getting tensed.
Proper avenue for website sale
The cost of buying a website is summed up to the total amount of yearly income that will be earned from using a website. The seller pushes a price of between 12-18 times of the monthly income of the website. As a good buyer, you should not exceed that range during negotiation. That doesn’t mean there is no room for negotiation when this range is exceeded in order to strike a good deal. This is because there are different sellers and different listings that accompany websites that are up for sale. There are several platforms for selling and buying websites. Some of them are Flippa, website brokers, forum market places. You can also buy website from trusted buyers or by Email contact or through people you know.
Conduct due diligence to find out site value
After deciding on the website you want to buy, there is a need for you to conduct due diligence. A site like Flippa does the listing notes of what you will be purchasing with the website. Also, it lists its history and status. In conducting due diligence, you are required to do the following.
Find out the reason for putting the website on sale: There is a need to find out the reason for the sale whether it has been flagged by google. It can also have been hit by the effect of goggle updates. Also, it can be due to the owner not having an interest in the use of the website anymore and has ventured into another business
Make them provide proofs of revenue and traffic analytics: You should implore the seller to provide a screenshot of revenue generated which contains the URL of the website. You need to ask them if the traffic relies solely on one source, has the traffic ever been down before.
There is a need to verify the seller if he/she is trustworthy: This can be done by checking their feedbacks or histories they have gotten on the sale platforms. You can also goggle search their names to check if they are real. A better way to get in touch with them is through phone or video calls like skype. This will make you closer to the seller and earn their trust adequately.
The most essential thing to do is to get a professional experienced in this niche and talk to them so that they can assure and verify that the site metric is real. They will also assist you in illustrating ways to improve the site. There are people offering this service on Flippa. All you have to do is hire them. Better still, you can ask a broker to offer you buy-side service.
Strike the deal:
After conducting a proper investigation about the site and you found it to be right for you, then you strike a deal. When striking a deal, 70% of the demanding price is good for the start of a negotiation. However, you can try to convince the seller about the price offering by stating some negative reasons and glitches you found on the website as the reason for lowering the price.
Getting to work
After successfully striking a deal, then you get to start working on the website. Your main aim is to increase the monthly income earning of your new website. You do this by enhancing its SEO ranking and content strategy in order to increase its traffic. Also, you need to find more affiliate opportunities and improve in social media and paid advertising so as to grow revenue and traffic. There is a need to generate active emails and the need to nurture them. You can hire an expert to do them for you. More importantly, automate and systemize the site as much as possible. This is due to the fact that site that takes a few hours to maintain sell more than site requiring 24 hours to maintain in a week.
Put the site up for sale
The best way to go about selling your website is to return to the platform you use to purchase the site. You can also make use of industry forum. When selling, you must have the proof and evidence to tender to the buyer. You should be available for answering due diligence questions. Don’t be too greedy, be realistic and straight as per your monthly earning and be devoid of emotions. The best way to sell is to make use of the escrow service to get paid for your site. It reveals the buyer has the capacity to buy the site and the seller is real and can be trusted.
Conclusion
There are people who make use of this means to make good deals and profit 5-6 times per year. It is a very lucrative way of making money. Imagine your website making $1000 monthly and you sold it at a rate between $12000 -$ 18000. Though, it is accompanied with some risks, just make sure you are focused on what you are doing. Hire experts for services to be rendered when you need them. Seek advice and illustrations from who you deem it fit can offer advice to you perfectly. Apply your experiences if you have and learn from your mistakes.