Website flipping

Comments July 21, 2009 / Posted in Intermediate, Internet Marketing, Website flipping

laptop-moneyWebsite flipping is another business model that some people are having success with.  You basically create a website on a niche topic, and sell it.  Pretty simple.

I am going through a course called Profit Loophole by an internet marketer named Dave Kelly.  Dave insists that this particular business model, when done correctly (per his experience) has long-term profit potential compared to other, popular internet marketing models.

Dave insists that there is a market of people who buy websites, dress them up a bit, and sell them at a higher price (just like house flipping).  Some of them even keep the website and try to monetize it with AdSense ads, affiliate offers, and their own products.  It all depends on the website’s niche and how much traffic it generates.

Here are the minimum requirements of a website that has the potential to be sold:

1) Indexed in Google, even if just 1 page indexed
2) Has a current Page Rank of at least 2 on the Google toolbar
3) Is a non hyphenated .com, .net, or .org domain
4) Has at least 1 link pointing to the site when using the link:domain.com operator in Google
5) The sites can be of any type, static HTML or Blog, it is not important as the potential buyer would not use your existing content.

But the two things that gives websites the most value are:

1) the amount of monthly hits to the site (traffic)
2) the amount of email subscribers to the site

So, if you can build up a website property that has these two features, chances are someone is willing to buy it from you.  Afterall, these are the two main reasons why Google purchased YouTube for over a billion dollars (YouTube as a business line does not make much money for Google to this day, and may even be losing money.  Google is still figuring out ways to monetize its traffic).

Just another avenue to throw into the mix.  Remember, don’t get caught in the internet marketing spiderweb.   You can try more than one model, but don’t spread yourself too thin; otherwise you’ll get nowhere.

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  • netrover
    Good point, Jay. So there you have it folks; your website should be making some moola if it's going to be an attractive buy.

    However, there are people who are good at generating traffic to a site but bad in monetization. Thus, a website with 2,000 visitors a month and no revenue still has some value. It could mean that the designer does not know how to monetize properly. If you see such an opportunity, and know how to monetize with affiliate links and perhaps your own products, it's money in the bank.
  • websiteflippingmaster
    Hey, great to see you post on website flipping, but there's a couple things that are a bit off.

    I'm not sure if this Dave guy just made this up off the top of his head, but those minimum requirements don't apply.

    You can build a site that has no traffic, revenue, no backlinks, etc. and still sell it. I've done it consistently myself for over a year now.

    You also said:
    "The sites can be of any type, static HTML or Blog, it is not important as the potential buyer would not use your existing content."

    That couldn't be further from the truth. In fact, the more unique content you have, the more value the site/blog will have - and the buyer doesn't just 'toss the unique content in the trash" lol.

    And finally, the two things that give sites the most value are NOT:
    1) the amount of monthly hits to the site (traffic)
    2) the amount of email subscribers to the site

    The two things that give sites the most value ARE:
    1) The amount/type of revenue a site is making
    2) The source of traffic (and sustainability) that is bringing in that revenue.

    Hope that helps if you're thinking of getting into website flipping. Also, you don't have to take my word for it. Just take a look at auctions being sold in the marketplace (Flippa.com for example)

    Cheers!
    Jay
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