Terms like “flipping houses” and “flea market flippers” have been common in popular culture for quite some time.
There are countless opportunities to make a profit by purchasing an item, enhancing it, and then reselling it.
Website flipping is the same thing. You look for a website that is underpriced, upgrade it so that you can sell it for more, and pocket the difference.
The potential earnings from flipping websites can be endless, making it an attractive alternative for many entrepreneurs seeking a new online business.
The process is straightforward, just like conventional flipping. To make a profit from a website purchase, you must first raise its profitability and then resell the site at a higher price.
Website development and expansion expertise can pay out handsomely in this hustle.
How much money can be made by flipping websites, where to find websites to buy and sell, and other related topics will be discussed in this post. C’mon, then, let’s get to it!
Defining Website Flipping
Before we tackle the steps involved in website flipping, let’s first define what it is. This way, we’ll be on the same page.
The process of buying profitable websites, improving them so that they generate more revenue from the same number of visitors or a larger percentage of the overall market, and then selling them for a profit…
That’s what’s known as website flipping.
However, this might be simplifying things too much. There’s a lot that goes into it, from picking the ideal website to putting in months of work to boost its search ranking.
While you can use a basic approach, developing your own is essential if you want to stand out in this sector.
Site flipping is great since it can be done on a massive or a micro scale. A website could be purchased for a few hundred dollars and then sold for ten times that amount!
A larger site usually means less work for you because your efforts will go further, even if the stakes are higher.
Flipping websites can generate a sizable income after a few years if the revenues are reinvested in the business. You might just end up with a sizeable nest egg!
How To Flip A Website: A Step-by-step Guide
1. Look for a website to buy.
Most of the time, with a live website, the majority of the legwork has already been completed.
Someone has put in the effort to establish a brand, create a body of work upon which to build (perhaps with the help of some backlinks), and demonstrate a profitable business model.
What’s more, they’ve given the website some breathing room, which means you can expand it more quickly than if you’d started with a brand-new domain or one that had been parked.
As a result, you can quickly move on to the fun part, which is improving the site’s performance and expanding the business’s revenue.
People are more likely to expand upon something that is already well-established, at least from a psychological perspective.
You may purchase (and sell) websites on many platforms nowadays, but website marketplaces are among the most common.
Make sure you conduct your “due diligence” (a.k.a. vital research) before committing to the acquisition of a website.
The last thing you want to do is put $20,000 into a website just to have its Google ranks plummet in a few months or have its revenue suddenly stop being paid the day after you launch it.
So, how do you choose the right website to flip? Zero in on ones with a proof of concept.
Most sellers enjoy bragging about the potential of their website. Even though the site presently only brings in lower revenue, it may have lots of email subscribers or a ton of organic search traffic.
In any event, you must conduct your own investigation to confirm that the website is functional.
You want a website that has crystal-clear proof of concept. At this point, the monetization strategy and traffic source need to complement one another nicely.
If a website has a stunning theme but no traffic or revenue data, someone is merely trying to sell you their failed concept, and you’ll need to invest a lot of time or money to make it successful.
Here are the usual places to find websites to flip:
You can browse through hundreds of listings on Flippa for different online businesses, such as blogs, affiliate websites, and Amazon FBA businesses.
Each listing will contain information about the business, including:
- How long the website has been registered
- How much money it makes every month
- How much it costs to run
- How much traffic is gets
Smaller websites that may be purchased for less than $100,000 are the primary focus of Flippa.
Empire Flippers is a wonderful choice for people wishing to buy more established websites. You’ll need to have some cash on hand to invest because these websites frequently sell for more than $50,000.
On Empire Flippers, which is similar to Flippa, you may locate websites to buy together with thorough information on the performance and history of the site.
Before they give you the complete URL of the website you’re interested in, EmpireFlippers will require you to show them your ability to pay. This can cause problems for certain folks because you might not have all that money to invest yet.
Another choice for purchasing a website to flip is Motion Invest. They only market top-notch websites with track records of success. There is a price for this, though.
Websites mentioned on Motion Invest are often a little more expensive than those from other sources.
Additionally, the majority of the websites on Motion Invest tend to be more affiliate-heavy, emphasizing affiliate marketing over other revenue streams.
Another excellent resource for finding websites for sale is InvestorsClub. They are selling a range of online enterprises, such as blogs and content sites.
Additionally, each listing is accompanied by a number of metrics that are useful to go over.
Another well-known platform for purchasing and selling domains is called Afternic. There are several websites that have partnerships with Afternic.
If you post your website there, it will automatically be made visible to those other buy-sell website platforms. Additionally, they provide parking services for the domains that are available.
Users can advertise their websites on Freemarket or purchase some expensive domain names. The thing that sets them apart from other sites that might charge an arm and a leg as a commission fee is that they only charge a 5% commission for each sale. This ensures that you’ll have the highest amount of money in your hands.
Digital Point Forum
Another great resource for flipping domains and websites is Digital Point Forum. Even though it is not as well regarded by users of the other platforms listed, if you use it properly, you can definitely find some amazing potential consumers.
More than anything else, it is best suited for webmasters and independent contractors searching for additional internet income streams.
Web Hosting Talk
Similar to Digital Point Forum, Web Hosting Talk is an online forum where you can ask questions and participate in conversations as well as sell domains and websites.
In fact, there are a lot of debates between webmasters and domain sellers going on there all the time.
If you use it properly, you can quickly locate a profitable website to flip from the people you meet there.
A website called Website Broker serves as a marketplace for buying and selling domains. This website receives a lot of traffic, so you may anticipate a competitive price for profitable domains.
There are also many bidders looking to buy from you if you decide to sell your website there because the domains and websites are auctioned there.
Finding private deals on your own is your final option for finding a website to resell. Although it may take longer than other techniques, this one can be quite lucrative.
Finding a few websites that interest you is the first step in doing this. Next, get in touch with the owners to see whether they’re interested in selling.
Here is a method you can use to locate these websites:
- Think about a topic or niche that you’re interested in.
- Do a quick Google search about things that are related to that niche.
- Check out the top three results.
- Input those domains on the Ahrefs Site Explorer tool to discover their estimated traffic.
- Send a message or an email to the publisher, asking if they’re interested in selling.
A TIP: Choose Solopreneurs.
Websites operated by a group of professionals are frequently too expensive to be profitable to sell.
These experts have worked hard and justly expect to be paid for their efforts. There is little you can do to improve the website because these specialists frequently use up its potential.
Most markets include information about the owner. So, look for websites that are privately held.
Additionally, look for amateurs that run websites. There is a lot of opportunity here because these owners typically haven’t made a lot of investment in their website.
Plus, hobbyist sellers can be open to bargaining.
2. Assess the site’s growth potential.
It makes sense to think about the prospective returns on your investment before making a decision to purchase a site you like.
Will this niche flourish in the next couple of years? For example, it wouldn’t be wise to buy a website about fidget spinners. Alternatively, it would be an excellent idea to invest in a site about skincare.
Does the website have the ability to attract more visitors? You can use a few quick techniques to discover the answers to these queries and the website’s growth potential.
I advise beginning with a standard search engine optimization (SEO) assessment. By doing this, you might find structural problems that might be hurting how well the site performs in organic search results.
Technical, on-page (including UX difficulties), and off-page SEO concerns will all be exposed through a complete audit.
When you look closer, you’ll also discover content-related missed opportunities, commonly referred to as a content gap. Your next action should be to analyze this gap.
The term “content gap” describes pertinent content that is missing from the website. You can increase the website’s chances of attracting visitors by identifying relevant topics that haven’t yet been covered on it.
Having a viable and consistent revenue stream for the website is the final piece of the puzzle.
Is it possible to add an additional revenue stream the day you buy the website?
Do you have the option to ask for a larger commission if it generates income through a private affiliate program?
You’ll notice that certain deals are just crossed out when you look at more of them.
Every article that could ever be published has already been written, the site has more links than it could ever require, a greater commission has already been agreed upon, and display advertising is currently running.
In these circumstances, unless you are a whiz, it’s probably not going to be an ideal site to flip for a profit.
3. Buy the website.
A website purchase involves a few more steps compared to a standard cash transaction.
Don’t forget to assign yourself ownership of the website. Otherwise, the website is not legitimately yours. Also, it helps to check to see if the seller is the real owner of the website. This might save you from a future headache!
Make sure you are buying the whole site.
This might seem like a no-brainer, but you need to be certain of what you’re buying.
Prior to anything else, make sure you purchase the full website, including the domain name, text, graphics, databases, servers, and mailing lists.
Get a detailed list of everything that is included in your bundle after that.
Draw up a contract.
Making a contract for you and the vendor to sign is worth the time and effort. The agreement will help to clarify the transfer process and address any potential problems. It’s not necessary for the contract to be overly complicated.
However, it must include crucial information such as the parties involved, a thorough description of the website, a price, a payment schedule, and information regarding the transfer.
Consider incorporating a non-compete clause if at all possible. This is particularly crucial if you are buying the website from a professional. They might simply leave and build a website that is exactly like yours!
Claim ownership over the site.
The procedure for changing website ownership is rather simple. The process shouldn’t be prolonged beyond what is necessary. The change from renting to owning the website ought to go smoothly.
The standard website migration procedure involves the following:
- Gaining access to the hosting account
- Gaining ownership of the website domain
- Gaining access to all linked third-party accounts like Google Analytics
- Obtaining all related files to your website, including logos, icons, and other image assets
4. Make improvements.
It’s time to execute your plan once you’ve located a website that holds a clear path to potential.
Because every site and operator differs, I am unable to advise you specifically on what to do. But in essence, you’re trying to figure out how to:
- Increase traffic, and
- Generate revenue from that traffic
Utilize your knowledge and play to your strengths. If you’re an expert on Pinterest, you can consider including that as a traffic source.
If you’re good at closing deals, you might be able to convince companies to place ads on your website. There are no restrictions as long as it generates more money consistently and may be transferred to a potential buyer.
You might be able to double website traffic, which should theoretically double revenue. Or perhaps you can increase monetization so that you can get twice as much revenue from a certain level of traffic.
There is also a multiplier impact if you can find a technique to boost traffic and monetization at the same time.
Simple solutions for this include purchasing a website that currently earns money from Amazon Associates USA.
You may see a 10% increase in revenue by integrating OneLink so that it also earns extra money from Amazon purchases made in the UK and Canada. Additionally, adding display advertising could increase your revenue by 20%.
Go back to your technical SEO job now, create some high-quality backlinks, and produce a ton of new content.
You’ll earn more money from flipping these websites as you gain more experience and hone your techniques.
Here are some areas to look into:
Google rankings are getting more and more impacted by site speed.
It’s crucial to make sure your website is as speedy as possible because a slow one might harm both your visitors and search engine results.
Here are some recommendations to speed up your website:
- Use a fast theme
- Compress images
- Limit plugin use
- Use a content delivery network (CDN)
Make It Mobile-Friendly
Since mobile devices account for the vast majority of website visits, it is essential to build a website that is simple to use on mobile devices.
It has also been claimed that search engines use smartphone usability as a ranking factor.
To make your website easier to read, use a mobile-friendly layout, break up text with short paragraphs, and use a bigger font size.
Introduce Other Forms of Media
Words are typically what come to mind when we think of copywriting.
But that’s not everything.
The ability to deliver your message and visually break up the material on your page is greatly enhanced by the use of images and videos.
By improving page engagement, a ranking factor, adding photos and videos can also benefit your SEO.
The greatest approach to using blogging to generate passive money is through affiliate marketing.
Simply recommending a product or service earns you a commission if someone makes a purchase after clicking your link.
The buyer pays the same price they would have if they hadn’t clicked on your link to make the transaction. Because the seller gives you the commission, you profit.
Your site can be made profitable by selling digital goods you made yourself or commissioned. You have complete control over price and marketing with this monetization method.
You essentially promote your goods and/or services, such as coaching services, ebooks, or a course you’ve written.
You have to convince your audience that your content is worth paying for if you want to monetize your blog through subscriptions.
You can promote premium content and benefits to market your subscription services if you have a loyal following and publish excellent content.
5. Consider valuation multiples.
Keep in mind that you’re selling more than just a website when you do this; you’re selling the infrastructure and income that support it.
Typically, you’ll receive 36 times your monthly “seller’s discretionary earnings” (also known as “SDE”) when you sell the website.
SDE essentially consists of the site’s earnings plus any additional expenses the buyer would have to pay, such as domain registration, web hosting, email hosting, and so forth. If you pay yourself, a salary is not included in that amount.
Having said that, some sites will sell for considerably less, while others will sell for much more.
Nothing prevents you from buying for 24x monthly SDE on Flippa and listing it right away with a better website broker that commands higher value multiples if you are willing to take on some risk and are not in a hurry to sell.
6. Put up your website for sale.
The final step is to put your website up for sale. While it’s true that some niches for websites sell better than others, generally speaking, if you’re willing to present your site well, you can get a higher valuation.
You should package up the following in order to get ready for the sale:
- The domain name and full access to the website (for migration)
- Access to email inbox
- SOPs for content creation, publication, link building, maintenance, social media, etc.
- Ownership of Google Analytics
- Ownership of social media handles
- Original copies of branding materials (logos, icons, etc.)
- Guarantee that all the content is original and images are properly licensed
Using the same online directories where you purchased your website is the greatest approach to connecting with potential customers.
However, you could also add a “for sale” ad to your website’s footer.
You can either take the long-term strategy of selling at a fixed rate or just take a chance and auction it off, depending on the size of your site and how eager you are to sell it.
The market determines when you sell your investment, just like when investing in other illiquid assets; you select when to list. Never force yourself to sell unless you want a low multiple; otherwise, avoid doing so.
Pricing Your Website
Accurate website pricing depends on a number of variables. However, most people would agree that a website is worth 24 to 36 times its monthly revenue.
You can get a feel of the factors to take into account when valuing and pricing your website using a valuation tool. You should consider things like the website’s age, online traffic, revenue sources, costs, and how much effort you put into maintaining the site while making this decision.
Website Flipping FAQs
How much money can you make flipping websites?
The potential for cash from website flipping is virtually endless. To find out how much money you can make by flipping websites, let’s do some pretend math.
Let’s assume you can earn $5,000 for each website you sell. If you can flip five websites annually, you’ll make a total of $25,000. Nice.
However, there are situations when using percentages is preferable. Assume for the moment that you can raise a website’s value by 20% a year.
This means that if you spend $10,000 to buy a website and let it grow for a few years, it might be worth $14,400 in just two years, making you $4,400. That’s just for one website.
How long does website flipping take?
Given the correct conditions, the popularity of a website can expand rapidly. The time it takes to make a profit through website flipping might range from a few months to five years or more.
If you’re hoping to earn living selling websites, you should know that you probably won’t see much profit unless you keep the site for at least a year.
If you can consistently produce high-quality content that people want to read, you may be able to sell your website in a year or less.
Are there benefits to website flipping?
Yes! If you’re considering beginning a business flipping websites, you should know that there are advantages to doing so.
There’s a demand for it, it requires little initial investment, and there are few obstacles to getting started.
To launch a business, most people consider the necessary capital expenditures and, in some cases, the availability of startup loans.
Because of the lower required investment, website flipping is an excellent business opportunity. A domain name can be purchased for as little as $2.
One of the best things about website flipping is that anyone can do it. There is a learning curve, but with the internet, everything is possible.
Related Reading: 10 income streams – Check Them Out Here
Final Thoughts On How To Flip Websites
Those wishing to invest in digital real estate may find success in website flipping. However, this business model requires knowledge of website growth in order to be profitable. There is a learning curve to this hustle.
Still, website flipping is a simple concept to grasp. If you want to make money flipping websites, you need to get your hands on an existing website or create one from scratch.
After that, you’ll have to focus on increasing sales and maximizing profits. Your website can be sold for a profit once it has reached a certain size and quality.
When flipping websites, keep in mind that not each one will be a hit. The same holds true for real estate flipping and other forms of investing: certain properties will be profitable while others will not.
Before putting all your eggs in one basket, it’s important to weigh everything. Happy flipping!