Believe it or not, websites are a form of real estate. Just as there are many opportunities to make millions of dollars by buying and selling homes, there is huge potential for Profit from website Flipping.

In fact, it is far easier to break into the business of buying and selling websites than most other assets because the capital requirements are far lower.

If you’re thinking about growing your wealth by investing in online real estate, this guide will give you an overview of how to flip websites for profit. We’ll cover what makes a great website to flip, as well as how you can monetise this.

Basics: What is Flipping Websites?

When people think of house flipping, they often imagine married couples that make their living by purchasing old homes, renovating them, and then selling the homes for a profit of $20,000 to $50,000.

Hypothetically, these couples then repeat the process a few times every year to make enough money to live on. While there are some similarities between house flipping and website flipping, there are also many key differences.

Namely, you should not expect website flipping to be as glamorous as house flipping.

Website flipping began when entrepreneurs were inspired by the concept of house flipping and decided to apply it to another area. A good entrepreneur will find an underperforming business and purchase it.

Entrepreneurs will then use their skills and knowledge to improve the performance of the business and then sell it for a nice profit.

Flipping websites and businesses is not easy. It requires a huge amount of diligence and research. However, the rewards can make the amount of effort put in more than worthwhile.

How to Flip a Website: The Basics

Of course, the idea of buying and selling businesses for profit is appealing to many entrepreneurs. However, buying a website or business can be very costly. Therefore, many entrepreneurs have a hard time getting started.

If you make the wrong decision, you may lose significant money. Of course, the same is true regarding real estate and the stock market. Therefore, you want to be certain of your ability and skills before you invest.

The Internet is still relatively new, and the online commerce industry is growing rapidly. Therefore, it should be no surprise that most business owners have poor websites online.

Other people have incredibly popular websites but are not taking advantage of the significant amount of traffic by monetising the website. Some are ignorant of the benefits of monetising a website. Others choose not to monetise their website.

Profiting from a website can be as easy as starting an AdSense campaign on a popular website after purchasing it from the owner.

If you purchase an eCommerce website, you may need to do some search engine marketing or change your AdWords campaign to make a profit.

Advantages of Purchasing Websites

The main advantage of purchasing a website is that you don’t have to work on establishing an audience. You also don’t have to wait for search engines to index the website. The vast majority of webmasters understand the advantages of link exchanges.

Even if you buy a poorly managed website, it will likely have a backlink network of some sort. Even if the website is not a top ten search result, the website will still be ready for you to improve and optimise.

You won’t have to deal with the Google sandbox if you buy a mature site.

This is a major advantage of flipping websites that are already established. Of course, the amount of profit you can make from a website will depend on what stage the website is at when you take it over.

You should also keep in mind that the price of the website will reflect how much profit the initial owner expects you to receive from the website. A website with a readership of 100,000 people will cost you far more than a website with a readership of just 10,000 people.

The price you pay will depend on how much revenue the current owner will lose by relinquishing control.

How to Make Money Flipping Websites

With all this in mind, there are two key things you’ll need to start making money flipping websites:

1. Understanding what makes a great candidate for website flipping,
2. The skills to build on this and improve the profitability of your sites.

Let’s look at each in turn.

How to Choose a Website to Flip

Essentially, the business side of a website can be broken down into a handful of important elements:

• Domain name,
• Design,
• Content,
• Domain-level SEO factors,
• Traffic,
• Conversion Rate Optimisation.

The thing is, if all of these things are great, the current owner probably won’t be interested in selling the site. Even if they were, you wouldn’t have much scope to turn a profit.

Say, for a second, you were trying to flip used cars rather than websites. You’d be looking for something with a few minor problems that you can quickly and cheaply repair and sell for profit.

The same principle applies to websites.

So, if you’re an SEO whizz, you’d want to find a strong site in every element except SEO. Then, you can work your magic and flip it for profit.

How to Improve a Website’s Performance

The remaining step is to fix the site’s particular pain point. Again, you should have chosen your site because it has a problem you know how to solve, so this step should be a walk in the park.

Say, for example, you’ve bought an eCommerce site with strong traffic figures but poor conversion rates.

Alternatively, you might purchase a site which is good at converting traffic but is struggling with search engine results because it has poor domain authority. In this case, you’d undertake a guest posting campaign to make the site more competitive for SEO.

Top Website Acquisition Strategies

Before you start your search for a website to acquire, you should think about what type of website you want to purchase and what changes you intend to make to the website.

You don’t want to purchase websites that won’t mesh with your web business strategy. Here are a few of the top website acquisition strategies to consider when searching for a new website to purchase.

Focus on Website Traffic

Purchase a website that receives targeted traffic for a service or product you offer. You can use sales pages, advertising, and email lists to direct traffic from the website you purchase to your products and services.

Buying a website is an easy and effective way to tap into a premade customer base for your products and services.

However, you need to be certain that the traffic that the website receives is quality. You don’t want to buy a website that doesn’t attract the type of users who would buy your products or services.

High-traffic websites consume a lot of bandwidth. Therefore, it is always possible that you will buy a liability rather than an asset for high-traffic websites. This would be true if your hosting costs eat into your profits.

Find and Flip Websites With Strong CRO

You may not make any changes to your new website besides boosting the amount of traffic it receives and improving the performance of any advertisements on the website.

Websites that have a lot of good content that is poorly optimized are ideal if you want to employ this strategy. Once you have the rights to all of the content, you can republish the content in other, more effective ways.

For example, you can use the content for article marketing or as information products. You could also give away access to the content for free to entice users to join your email list.

Flip Websites Quickly

You might purchase websites to flip them immediately. When it comes to flipping websites, this strategy is probably the riskiest. This is because you will need to find websites that are obviously underperforming.

The more potential a website has, the less risky the venture will be. Once you renovate the website, you may be able to sell it quickly for a handsome profit.

You should look for eCommerce websites selling products with a market that is still becoming established. You should also look for eCommerce websites run by owners who are not good at online marketing or search engine optimization.

These owners tend to be far more willing to sell their websites.

Look For Sites with a Strong Community

Consider buying a website that is driven by its community. For example, you can make a lot of money from a website that has a massive forum.

These websites are usually created by hobbyists. Therefore, the aim of these websites is usually not profit. At some point, such websites may attract so much traffic that the bandwidth will cost the owners a significant amount of money.

If the owners aren’t skilled in monetisation, they may be interested in selling the website.

This strategy is a great way to make significant advertising revenue. However, you must carefully analyse a website’s audience before purchasing. Some forum communities can be very difficult to profit from.

Make Money Flipping Websites with Strong SEO

Try to look for websites that are operating in a popular keyword or niche. You can also look for websites operating in a niche you believe will become popular soon. Search engine traffic is largely based on keywords.

Therefore, if you have a knack for picking out trends before they even become trends, you stand to profit substantially. If you suspect that a trend will become popular soon, start buying related websites now before they become overpriced and mainstream.

Purchase Competitors’ Websites

Purchase websites to eliminate or team up with the competition. You can purchase a competing website or negotiate for a merger to create a larger business.

The effectiveness of this strategy depends largely on the industry in which you are operating. Website hosting is one example of an industry in which this strategy has proven to be very effective.

Flip Websites with a Strong Domain Name

Sometimes, you may want to purchase a website just for the domain name. If you buy a website only for the domain name, you shouldn’t care much about the website content.

For example, if you had purchased blog.com or apple.com a few decades ago, you would have certainly made a handsome profit. Sometimes, the address is the most valuable part of a website.

If you suspect a website has a valuable domain, you should get your hands on the website and wait to see what happens in the future.

You can buy websites and make a considerable profit if you play your cards right when it comes to flipping websites.

Simply follow the tips discussed above and be dedicated to growing your new website, and you should be able to sell it for a handsome profit within a few years. So, instead of buying a website – you might be tempted to build a website – hence, we have a range of articles shared here to help you on the website development journey:

Building a website from Scratch

Wix website development

Once built – how to launch a website

Or maybe you decide WordPress Development is the way forward for you

Of course, our core agency services are website design and website development – so if we can help in website development or website flipping, we would be delighted to.

Evaluating Websites for Flipping

• Use analytics to evaluate traffic sources, engagement metrics, and geo-distribution. Check for thin content pages with high bounce rates.
• Require access to analytics, ad accounts, and payment processors to validate reported revenues and growth.
• Assess technical health by inspecting site speed, security, and server costs. Outdated platforms require more work.
• Build financial models but be conservative in growth estimates. Discount claimed revenues by 10-20% to allow a margin of error.
• Inspect for past or current Google penalties using tools like SEMrush. Manual actions can severely lower valuations.
• Marketplaces like Flippa and EmpireFlippers connect buyers and sellers, but quality can vary greatly.
• Brokers and deal websites connect buyers to vetted, off-market opportunities. Higher quality potential but also higher costs.
• Monitor domain name drops and expirations to find newly available opportunities.
• Network with other flippers to find possibilities before they hit the open market.
• Identify underutilized sites in a niche and make direct outreach offers to owners.
• Analyze historical metrics using analytics to estimate baseline traffic and revenue.
• Research trends in the niche to determine if the industry is growing or shrinking.
• Set realistic goals for traffic and revenue growth based on the competitiveness of the niche.
• Keep profit projections conservative to account for unforeseen costs and slower growth timelines.
• Calculate your minimum acceptable profit margin based on the time investments required.

Improving Sites for Resale

• Update page titles and meta descriptions to optimize for target buyer keywords.
• Improve page speed through compression, caching, and image optimization.
• Fix any technical problems like broken links, site errors, and duplicate content issues.
• Create pillar content targeting high-volume keywords in the niche. Aim for 3000+ word, optimized posts.
• Identify thin content and low-traffic pages to consolidate or flesh out.
• Build internal links between relevant pages to distribute authority and rankings.
• Create an online portfolio showcasing your successful site flips – metrics, growth strategies, and testimonials.
• Publish guest posts on authority sites related to online business and website flipping.
• Be active on website flipping forums and networks, providing value to build your reputation.
• Use brandable domain names, quality content and appealing designs to boost perceived value.

Selling Flipped Websites

• Write SEO-optimized titles and descriptions using keywords buyers search for.
• Data back up tout traffic growth, revenue increases, and projected earnings.
• Create professional-looking profiles on Flippa, EmpireFlippers and niche marketplaces relevant to the website niche.
• Promote your listings by sharing them on the website, flipping forums and social media.
• Identify website investors, online entrepreneurs, and small publishers who may be interested in your listing.
• Prepare professional pitch templates showcasing the opportunity and profit potential.
• Start slow – establish a relationship by engaging with their content and commenting before pitching.
• Personalize each inquiry by explaining why it would be a great match for that particular buyer.

Website Flipping FAQs

What does it cost to get started flipping websites?

The costs to start website flipping include:

• Purchasing the website – this can vary greatly but expect to pay $5,000-$50,000 for an established site.
• Any improvements or changes needed – factor in potential costs for redesigns, content creation, and technical optimization. Budget at least $1,000-$5,000.
• Marketplace listing fees – most platforms charge an upfront listing fee and/or final sale commission. These range from $100-$500 on average.
• Domain registration/hosting – budget around $100-$300 per year for domain registrations and hosting fees.
• Tools & Software – Useful tools like SEO software, analytics, and website grader subscriptions can cost $50-$200 monthly.

You’ll need around $7,000-$60,000+ in total startup capital, depending on the sites you buy and the work required.

What are the risks associated with website flipping?

Some key risks include:

• Overpaying for low-quality sites that you can’t later sell at a profit. Thoroughly vet sites before purchasing.
• Hidden issues not uncovered during due diligence – traffic quality issues, penalties, tech problems.
• Market fluctuations lower the sales price. Analyze industry trends.
• Pending Google algorithm updates that can tank traffic. Check for updates before buying/selling.
• Copycats are replicating your successful flips. Keep unique improvement strategies private.
• Time investments are much higher than expected. Set realistic timelines.

What are good strategies for beginners to website flipping?

Some tips for beginners:

• Start with a small niche site to minimize risk as you learn. Easier to sell.
• Use website grader tools to objectively evaluate sites before purchasing.
• Learn how to vet traffic quality, create financial projections, and do due diligence.
• Focus on quick updates like on-page SEO, content, and speed optimization at first.
• Join forum communities to connect with experienced flippers for advice.
• Consider partnering with a technical co-founder at first to handle development.
• Be conservative in profit projections. It often takes longer and costs more than expected.

Is website flipping legal?

Flipping websites legally involves a few key factors:

• The sites must be original properties, not copies of other sites.
• You must have full rights to sell the site, confirmed through documentation.
• Any content used or created cannot infringe on copyrights.
• You must disclose paid posts, sponsorships, etc. properly.
• Avoid spammy techniques like keyword stuffing shady backlinks when optimizing.

As long as you create original sites or purchase sites, you have full rights to sell, optimize them properly, and sell to buyers transparently; website flipping is legal.

How long does it take to flip a website?

The timeline can vary substantially, but expect 1-12 months on average:

• Finding a viable website to purchase can take anywhere from 1 week to 6 months.
• Optimizing the site with content improvements and SEO updates can take 1-4 months.
• Listing and selling the site can take 1 week to 6+ months to find the right buyer.
• Allow extra time for negotiating prices, transferring sites to buyers, etc.

Many factors influence timelines, like competition, profit goals, site improvements needed, and more. Be conservative in estimates, as first flips often take longer.

The post Website Flipping: How to Flip Websites for Profit appeared first on ProfileTree.