Website Flipping is all about turning another man’s trash into your treasure. Surely, you are familiar with TV shows that involve an entrepreneur buying a wrecked car, giving it an overhaul and then selling it for major profit? This is exactly the way website flipping works, except you are not transforming cars, but websites.
Just like any other enterprise, website flipping does have its risks. The best way to counter those risks would be to gather information. So what do you need to know before taking the first steps into this venture?
- The Spot – you first need to look for a site that you can buy. What you need to look for in a site is potential. The site should be salvageable. In effect, you have to look for a lump of coal that has the potential to transform into a diamond. You need to be able to plan ahead and visualize how a site can be transformed. Thus, this first step can constitute practically half the battle.
- The Sale – when you have spotted the diamond in the rough, you might want to pick it up. Before you negotiate and complete a sale, you might want to gather a little information. For starters: how much of an upgrade does the site need? Knowing this bit of information can help you estimate the costs of making the site salable.You also need a rough estimate regarding just how much you can make by selling the site. With this piece of information, you can set a limit on how much you should pay for a specific site. With these, you will be able to start negotiations.You need to negotiate to minimize the cost of acquiring the website in question. You need to keep in mind that adding value to the site will require you to make additional investments.
- The Upgrade – When you have acquired the site you want, it’s time to get to work on improving it. In transforming a site, there are varying degrees of work that has to be done, ranging from simple Search Engine Optimization to all-out redesign. A lot of people find that the basic concept of the site is what they wanted in the first place and they have to revamp everything else to make the site sell.When adding value to the website, always bear in mind that you need to profit. Although you should have an idea regarding how much work the site needs to sell before you buy it, there’s always the chance of some unforeseen expenses arising, so you had better have some contingency.
- The sell – after you have finished salvaging the site and transforming it into something that people will want to have, it’s time to sell it. Smart website flippers actually make sure that there’s a market for that website before they buy and upgrade it. Try advertising on different forums and auction sites if you have a website to sell. In setting the price, keep your expenses and effort in mind, as well as market demand.
Those are pretty much the basics of website flipping. With the right instincts and talent, you could really turn in a handsome profit.