Abhishek Suryawala, a software engineer with a promising career, decided to give up his 9 to 5 job and start a business of his own that lets him enjoy the financial freedom that too without full-time engagement. Over the past few years, Abhishek has managed to earn a decent income from a non-conventional trade, once he decided to start a website flipping business.
For those who don’t know anything about the website flipping business, it is almost like flipping houses. The process involves buying, designing, and selling websites at a profit. Sounds too technical? Surprisingly not! Anyone with limited site development experience can start a website flipping business.
The aim of a smart flipper is to look for undervalued sites, which he can sell at a higher price with minimum time and money investment. This article summarizes the ‘ins and outs’ of website flipping to help you live your dreams with an online income opportunity.
Evaluate Your Investment Capacity and Time Limit Before You Start A Website Flipping Business
Before getting into the interesting business of website flipping, it is important to evaluate the time and money that you can invest.
This is one business where you need to invest a significant sum of money and your precious time to carefully select and buy websites and hosting services. This should be followed by the website modification to fetch a higher price.
Keep in mind that a website flipping business, like any other business, does not guarantee an assured return on your investments. So to start with, limit your resources to what you can afford to lose. Once you finalize the resources, you can move ahead with the next steps.
Choose Website Names Smartly – A Crucial Step to Start a Website Flipping Business
The very first step of starting a website flipping business is to pick up websites with names that have a unique appeal. It is an important step to attract buyers.
For instance, if you are planning to sell your websites to businesses, then look for commercial site names related to specific business categories, products, services, or industries. Let’s say you target the food delivery niche. Then try to select a domain name that contains the terms like “food”, “delivery”, “instant”, “quick” and so on. Else, you can opt for a name that is short, sweet, and easily memorable.
To find the right names, you can try a domain name checker site of your choice. A domain name checker works as a search engine, enabling you to hunt website names and see if they are available. Many name checkers also give a list of similar names that you can use.
Spot the Right Niches – The Key Part of Website Flipping Business
Experts of the game talk about evergreen content. It actually refers to particular niches that are forever favorites and will remain so for years to come.
Selecting the right niche is crucial in a website flipping business. You should always focus on an evergreen niche that is not just a passing fad. It’s better to avoid names that relate to time-based topics, such as World Cup Football, Christmas, New Year, Valentine’s Day, and so on. The site might get outstanding hits during those specific events and occasions. But the moment that event is over, it will experience an abrupt drop in the traffic flow.
Consider some of the all-time popular niches are relationships, health and wellness, finance, sports, fashion, travel, business, hobbies, and personal growth.
Identify Websites to Purchase – Look for Authentic Source
When buying a website, check it out against specific performance indicators so that you can sell it easily after a certain period. The main criteria you should look for, is, whether the website is generating revenue on a consistent basis. If not, you can try to assess its potential to generate income after necessary upgrades.
You should find a website that has a natural influx of income, as opposed to a site that generates totally ad-based revenue. Also, check the site’s upside prospects, such as options to optimize the design, content, traffic, and revenue.
Place Your Bid – Do A Thorough Research
After you zero in on a website, it is time to place your bid/offer. Domain marketplaces like GoDaddy already list the website price, but there are many other marketplaces where you can place lower bids to buy suitable domain names.
The rule of thumb is to quote a price which is seventy percent below the seller’s asking price. However, don’t bargain too much if you come across a website that looks promising. Check out the necessary terms and lock the deal instantly.
Enhance the Website’s Appeal – Apply Your Web Design and SEO Skills
In a website flipping business, the main work starts after you purchase the website and get it transferred in your name. Now it is time to optimize the website and make it ready for buyers.
You need to work hard to improve the site’s SEO and content strategy. This in turn will help augment the website’s ranking on the Search Engine Results Page (SERP).
Further, you need to create and nurture an email list. Explore affiliate opportunities, as well as focus on paid advertising and social media promotion to heighten the site’s revenue growth. Your ultimate goal is to boost the traffic and income potential of the website.
Sell the Website – The Rewarding Part of Website Flipping Business
Consider selling the website only when you are fully satisfied with the site’s optimization. There are several ways to sell a website, but the best way is via an auction. Potential buyers, in an auction setting, bid for your website.
You can let your buyers know the USP of your website. Consider sharing information like the URL and extensions, the total number of pages, daily traffic it attracts, number of subscribers, revenue earned to date, and so on. To sell your website, you can also go back to the marketplace from where you bought your site. Else you can run your own advertising campaign on social media platforms to sell it online.
Is It Profitable To Start a Website Flipping Business Now?
Quite a valid question and I can understand your concern too. Over the past few years, competition has risen rapidly in this space, as many players have entered the domain flipping segment. And yet, it is still profitable to start a website flipping business provided you apply the strategies to make it Profitable.
You may think that you have cracked a great deal by finding a high-traffic site at a cheap rate because of its poor monetization policy. Sometimes you can find hidden gems with sound monetization strategy but poor SEO practice. Apparently such a deal may look like a good one but it might not be so. Let me explain how.
Suppose you purchase a website that is making $1000 a month. If it is a content-based site, you can get it at 15x to 20x the monthly earnings. And if it is an e-commerce site then the valuation will be around 35x to 40x the monthly earnings. Thus you may need to shell out $40,000 to acquire this site. Then you can get a really lucrative website flipping deal, only if you can increase its average monthly revenue to $4000 to $5000. Thus it depends on your SEO and content marketing abilities to turn the website flipping business into a profitable one.
The average valuation of websites has risen to more than 25% in the last two years. Thus website flipping has become quite a profitable and quick way to make money online.
There’s always a high demand for good websites and e-commerce stores, that are making money consistently. So, the website flipping practice is very much alive and is thriving!
If you find the above information helpful then please share it with those looking for online small business opportunities from home.
Anirban Mukherji has been in the content creation industry since 2013. His passion for helping small online businesses streams in the form of new ideas and strategies that translate into a formula for success. Besides writing content for small enterprises, Anirban also creates SEO-friendly pieces for institutions of all sizes. Connect with Anirban on Facebook.