The Art of Buying Websites Low and Selling High

Flipping websites has become a great business opportunity for entrepreneurs looking to get in on the burgeoning internet marketplace. Flipping virtual real estate is essentially the same as flipping physical real estate. There are criteria for the best sites to buy and basic guidelines for what to do to a site before it will sell for its highest value. All of these things can be broken down into three basic categories that every site-flipper needs to know; what, where and when.

What Sites Do I Buy?

If you’re a beginner to the site flipping business, you’ll want to start small. That means shopping for sites that are low cost and low profit. While it may seem unappealing to limit yourself to a small paycheck at first, it is important to learn the ropes before you jump into a big site. Since site flipping requires investment of money, not just your time, there is always a potential for financial loss. Low traffic blog sites or sites which already generate revenue are safe choices that will help you get your hands dirty without the chance of hurting your finances. Sites that are already established are easier to turn around quickly rather than sites which need to be overhauled or rebuilt.

Setting yourself a budget, around $200 for newcomers, is a great way to limit the websites you’re shopping for. It’s important that you avoid sites such as turnkey domains at first. They are appealing for being fairly low-cost and completely built, only requiring the new owner to “turn the key”. However, they may be poorly built and not optimized to pull in traffic. Getting them up to snuff and ready for resale can require a lot of work and knowledge.

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 much 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.

One big thing to avoid is a site which does not specialize in selling within the site flipping business alone. For instance, you can buy domain names on eBay or Craigslist, but you’re not going to find the same quality and deals that you will find at specialized sites. Most people who know what they are doing will avoid these sites, which means people looking to take advantage of someone new are more likely to frequent them.

When Do I Sell My 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.

Turning around virtual real estate is something you can spend all day reading up on, and while you certainly want to learn as much as you can before you get started it is the actual experience that will teach you best. No matter how prepared you are, the hardest part is always making the purchase of that first site. But once you flip your first site, you’ll quickly understand why this business has grabbed the attention of so many people looking to make money working for themselves. Buying websites and flipping then can be addictive, profitable, and even fun.