How Does Website Flipping Work?
Website flipping - buying and selling websites - is a good way of generating cash-flow to finance the birth of your online business. For some it’s a way of making a full-time income. It may sound difficult at first. The truth is, anyone can join in and take a piece of the hundreds of thousands of dollars that change hands every week on website marketplaces.
In the future I will explain what I like and what I don’t like about website flipping - you can decide for yourself if website flipping is for you. For now I want to talk about what kinds of people get involved in website flipping, and how you can join in on the action.
In the website flipping world, there are three groups of people - developers, marketers, and investors. Each of these groups have special skills that make them valuable to the website marketplace. Sometimes the same person takes the role of both developer and marketer for a website, but you don’t need to know everything to start selling websites. All you need for a good start is to learn one category of skills and move up from there.
Developers create websites and content for them. Creating websites is the easy part - you can use hundreds of free tools available (e.g. Weebly.com ). Creating content is the more important part. The better and more targeted the content you create for the website, the more valuable it is. You can sell a website with no traffic and no revenue for $70-100 (or more depending on the quality of the content).
Marketers pick up where developers leave off; they create traffic streams for a website and get it to generate income. Normally they focus on organic traffic (meaning mainly from search engines). There are numerous different ways to bring visitors to a website and even more for generating revenue. When a website starts making money, it normally sells for around 5-8 times the monthly revenue - so a website that is making $500 per month would sell for $2,500-4,000.
Investors are the people who buy established websites - that is websites that are already making money. These are the people who pay marketers their 5 months of revenue, and buy themselves an additional income stream. Investors like websites that have high earnings, low maintenance, and that won’t die in a couple of months.
There are also many people in between. For example, one marketer can buy another marketer’s underdeveloped website, fix it up and sell it on. You can join in wherever you feel you fit best.
I really appreciate that you keep coming back to my site, it's loyal people like you that make what I do worth it. If you have any questions feel free to email me at Tony [at] BeginWorkingOnline [dot] com. If you like what you read, and find it helpful, make sure to share it with a friend - they'll love you for it! Remember, this blog is not about me, it's about you - so participate in the discussion, let me and the other readers know what you think and how you're doing.
