Many internet entrepreneurs are turning to website flipping for new opportunities. While the basics of turning over virtual real estate are essentially the same as physical real estate (buy low, improve and sell high) the details involved are substantially different. The basic criteria which determine what sites are potentially the most lucrative are simple to understand. When you really break it down, there are three primary categories to cover; what, where and when.
What Sites Are Best For Flipping?
As with most new ventures, you should start your site flipping business small. Short-term sites are your best option here. They have a low initial cost and can be turned around for profit relatively quickly. The one thing that causes some people to ignore short-term sites is that they do not make very much money. The idea is to try for high volume and low profit so that you can get plenty of experience without risking too much of your money. If you spend your entire budget on an expensive site and are unable to turn it around, it could make for a quick end to your new business. If you will discover a domain which is already generating profit or has a flow of traffic, you have a better chance of successfully flipping it.
If you set yourself a budget of about $200 you will have access to a wide array of simple sites. But you may want to avoid anything labeled as a turnkey website. These can be appealing because they are fully built and only require a new owner to “turn the key”. However, the truth is that these websites are often poorly made and not optimized at all. Without the proper experience, you may struggle to turn them around.
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 significantly 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 go looking 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 Would Be the Best Time to Sell a Site?
Knowing when to sell your domain is largely 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 hardest 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.