The internet provides a vast array of new possibilities for those who grab hold of the opportunities that this new technology provides. Site flipping is one opportunity that work from home mums and entrepreneurs have been taking advantage of to secure steady income while developing a home based business.
For the purposes of site flipping, a website is essentially internet ‘real estate’. Just like a home renovation, the updating and improvement of a site can increase the value of something that you have.
About Site Flipping
If you’ve not had a lot to do with the internet beyond surfing your favourites sites, then you may not have heard the term ‘site flipping’ before. Just like day trading of stocks, or flipping of real estate, site flipping is about taking a website that is not fulfilling it’s full potential and turning it into a more profitable, attractive opportunity.
Flipping can be a short term proposition, or you may keep the site for longer and make more in depth improvements before selling it on to someone looking for a site that is bringing in a steady stream of income.
To get started, you should find out more about web page rankings and traffic, so that you can analyse a site fully before outlaying any money. Sites are often sold at auctions sites such as flippa.com. As a rule of thumb, you should expect to pay around 10 times the monthly income. Here are some examples of the indicators you should be looking for to determine if a site is valuable:
1. Does it have a list (customer base)?
2. Existing profit = instant cashflow
3. Property (network and domain) – you might own a niche (i.e. have a lot of sites related to the same niche)
4. Traffic (size and source): the more targeted and relevant traffic you’ve got the higher the value of your business.
5. History: has it been getting traffic and profit, how old is the domain?
Once you have a clear picture of the site’s potential, you can then develop a solid plan to follow to make improvements and then on-sell or ‘flip’ the site to realise a profit.
Making a Profit
There are a number of ways to improve the profits a site is generating and turning site flipping into a work from home opportunity. Depending upon the age of the site, the amount of traffic it currently receives and whether or not it has already been monetized with sponsorship or with the use of advertising, these areas are a good place to start.
A relatively new site with great content and a good following can be improved if you are willing to wait things out a while until the site is a little older, at which point in time it may become worth more money. If a site with a solid following, but which could be significantly improved with just a little traffic generation effort is another option.
Finally, you may find that the site already has everything necessary in place, but has never been monetized and is therefore open to improvement and an increase in value by taking that step.
If you’re eager to make an online income, mums have found that site flipping is a great opportunity. For those who have not fully explored the possibilities for making money online, this is one area that embraces the ideas of making money wholly within the online environment.
Before making any buying decisions, it is vital that you do your due diligence. You must confirm what you have been told by the seller. Therefore, research the market, the site and the seller. Watch out for ‘red flags’ such as very ‘salesy’ copy. Remember, if it sounds too good to be true, there is a strong chance it is! Saying that, there are definitely some amazing deals to be found – as long as you know what you are looking for!