If you are going to buy and sell websites to flip instead of building them yourself for flipping, there are basically two types you can get depending on how much money you have to start, whether you have time to work on them, and your interests…
1. Buy a new “startup” website.
Most people start with this when they are first getting into site flipping because it is the cheaper and less risky option. It’s also a good way to learn the process of buying and selling websites if you have never done it before. Somebody will have registered the domain and set up the site, there might be a little traffic and earnings, but usually not much. You buy it and “fix it up” by adding content, building traffic, monetizing it, etc… If you put enough time and effort into it you should be able to sell it for a substantial profit within a few months to a year or so.
There are two main dangers with startup sites. One is that they might not be original so a lot of other people have the exact same or similar sites and some of them will be better at marketing it than you are. It is best to either buy a site with original content, or edit the content after you buy it so that your site is unique.
The other danger is that you may end up not doing anything with it. Since it didn’t cost you very much money you might not be as fired up to develop it. It will sit on the internet for a year or two costing you money for hosting and bringing in no income. If you are not going to develop it then you shouldn’t buy a new startup site… see the next section for more on that.
2. Buy an established site that has existing traffic and is making money.
An established site will cost you more to buy but you won’t have to do as much work because it should already have traffic and income coming in. If the traffic is generated from search engines you should be able to let it run on autopilot while you spend time doing other things to increase its value.
Most established sites are priced for sale on the basis of their current income, with the price usually being between 10 and 24 times the monthly income. Some sites make a lot of money or get a lot of traffic (or both) and will be relatively expensive. However, a site that has been online for a year or two without much traffic and a low monthly income can be bought for pretty cheap.
What you get basically depends on how much money you have to spend, how much time you have to invest, and how comfortable you are with technology. A site that is based around online games is probably going to require some programming knowledge while a content site made up of articles and blog posts on a popular subject will be much easier to maintain.
One of the great things about this way of making money online is that if you buy a site at the price of 10 months income, you should make your money back in less than a year and then you can sell the site and make even more profit. So, you will have doubled or tripled your money in a year without doing much of anything. This is a much better rate of return than you will get on just about any other investment that you can do.
If you do enough extra work on it, you can increase the traffic and income during that year, and then flip it for 12-24 times your increased income. You can earn your money back many times over that way.
Website flipping
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