Everyone uses the Internet in different ways to make money. Some people like to build and hold on to their sites – managing as much content as possible from day to day. Other people like to snag a good domain name, build it up and flip it to another marketer in as little time as possible.
If you do it right, flipping websites can be an extremely profitable venture – allowing you to take a promising property and turn it into an income-rich opportunity for another marketer. You never have to worry about actually managing the sites and there are millions of sites to choose from.
What Flippa Does
There are quite a few ways to go about flipping domain names. Back in the day, the most common place to buy and sell domains was on eBay. However, today, the market has become more specialized and people turn to dedicated services like Flippa.
The site is setup similar to eBay, with reserve prices, auctions, and buy it now prices set for any single domain being sold. Anyone can list a domain or website for sale, and anyone can buy one, but remember these are binding sales, so always do your research first.
There are three types of flips of websites, including the following:
* Domain Flip – This is when you simply sell off a domain name that has grown in value. For instance, if you had purchased an iphone or ipad related domain before the products were launched, they would have grown in price later on.
* Building to Flip – This is when you build a site up with the intention of flipping it. The largest profits are going to be found in this category.
* Prebuilt Site Flip – This is when you take a site you were actively working on and sell it off because you’ve lost interest or would like to use the profit to start a new site.
When it comes time to sell a site, you have to think of the potential profit in the long run. There is a careful dance going on with Flippa where buyers try to gauge long term profit potential and sellers try to measure that potential against what they need right now.
The goal of selling is to cash in on time you’ve spent on a website. For example, if you were to build a website for $25 of your money and a few hours a week of your time, and then sell it for $1000 in three or four months, you just made a steady profit.
That site could have gone on to make $100 a month after that, but alternately, you could take the $1000 in profit and build 5 new sites, outsourcing all the work. Now, you have 5 sites that can make $100 a month. You can either resell them again and grow your business, or you can take that increased profit.
On the other side, buying sites on Flippa is equally as profitable when done right. Sites already making money are not necessarily scams. You will, however, need to do some serious research to make sure the transaction is above water.
Check the WHOIS, the recent history, the Google Cache, and search listings. If the site checks out, measure just how much value you can add to the site and if that increased value can help you make greater profits on the site once you own it.
The goal of flipping websites is not actually in determining the value of the site, but determining the value of the money you will gain after the transaction is complete. This is true for both buying and selling, and should be carefully mapped out before you post anything on Flippa.