5 Tips for Flipping Websites
Buying websites and reselling them for profit can be a lucrative business venture, but there are also many opportunities to be burned. Even seasoned pros run the risk of falling victim to a scam, or paying too much for a website that is unable to bring more than what was paid to obtain it. There are some definite precautions one can take when entering into the world of flipping websites. Here are some tips to help you make the most out of your experience reselling:
1. Always use well-known resources when searching for websites that are on the market.
There are many websites with vast databases of current listings, so make sure you do your research and use only the ones that receive high ratings and positive feedback and reviews from those who have successfully used them in the past. Many of these websites have comprehensive data about each listing, including the amount of traffic the website typically gets and expected revenue. Some are auction formats, where the highest bidder gets to purchase the website in question. Others are simply for sale for a flat fee. Shop around before you start shopping around.
2. Never lose sight of your budget.
While it may be tempting to spend a little more than you had originally planned, it is best not to go past your preset limitations. Always consider how much you have to invest in improving or redesigning the website that you have chosen to flip. You don’t want to end up having to spend more on improving the website than it will bring you in profit to do so.
3. Keep a keen eye out for scams.
Even on the most reputable listing website, a fraudulent website can slip through the system that weeds out the bad apples, despite their tireless efforts to protect you from falling victim to one of the countless types of tricks out there today. They may make false claims regarding traffic or revenue. Be sure to do any and all relevant research before placing a bid on a website. If something doesn’t seem quite right, trust your instinct. There are many fish in the virtual sea.
4. Assess what needs to be done to the website in order to sell it before you purchase it.
Making a detailed plan for reorganizing the website, revamping the logo or images, and improving the content. Do not overlook anything, and you will ensure that you don’t overpay for the website, or underestimate the overhead it will take to make it worth more to potential buyers. You may end up discovering that it would have been cheaper in the long run to just start from scratch and build your own new website to fill the niche that the one you purchased was aiming for. If it is going to be too expensive to fix up the old one, you want to know before you make the mistake of investing in a bad project.
5. Know when to sell.
Just like a house or car, there is a crucial point when the amount of time, money, and effort that you are putting into fixing up the website becomes greater than the profit you will make from selling it. Knowing when it’s time to quit adding features or improving the content is important to gaining the utmost from your efforts.