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Website Flipping

Posted on April 9, 2008 by Rosanne Lim Startups 5 Comments
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While website acquisitions by big boys such as Google and News Corp. gets the most attention, there are thousands of small-scale websites that are being traded or “flipped” over from one person to another everyday. Basically, website flipping involves spotting an already existing website and improving almost everything about it including the content, the Page Rank, and its SEO and then selling it to another buyer at a profit.

Website flipping uses the same principle as “real estate” flipping except that it has the potential for exponential profit margin. This is because the website you acquired for $1,000 can be worth $25,000 in a few months assuming that you have dramatically improved its perceived market value. All kinds of websites can be candidates of flipping including blogs, entertainment sites, dating sites, and even mini sites. These kinds of sites needs varying levels of expertise to run so you need to be sure that you can run the site you acquired.

Just like in real estate, the key to success in website flipping is understanding the “product” you are buying. For example, if in real estate you need to consider the location and the current condition of the house; you need to determine where the site appears when you do a Google search. You also need to look into its Alexa.com traffic results, its revenue figures, and how active the community is. These factors will determine how much you should offer for the site and how much you will charge for it after you had “renovated” it.

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    5 Comments »

    2008-04-09 21:08:18

    Flipping Web Sites For Fun & Profit…

    Just like real estate, web site flipping can be very profitable. Although it isn’t without it pitfalls, buying and selling web sites can be very lucrative.
    There are many investors making legitimate money online by flipping web sites.
    Flipping a …

     
    Comment by Tom Beaton
    2008-04-10 02:09:42

    Whilst it can be very profitable it is also quite labour intensive. With the right skills though, perhaps in the form of a small team it could be an incredibly effective business model.

     
    Comment by Bujes
    2008-04-10 18:15:43

    I’m really interested in website flipping and I’m planning to flip one site soon.

    I have already bought one site to flip, but I haven’t done a lot on it yet. I increas PR, it gets few visitors per day more and I have added some content, but it isn’t enough. Maybe I could make $20 of profit.

    Comment by Rosanne Lim
    2008-04-11 07:57:54

    You should strive to get more than $20..that rate may not even be sufficient enough for the time you invested in purchasing and improving the website.

     
     
    Comment by Sucker
    2008-04-14 15:57:24

    Yeah, the best sites are “fixer-uppers” :)

    Ones that are poorly monetized and have easy ways to fix them up that add a lot of perceived value… of course, these are the hardest to find for a good deal ;)

     
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