Is website flipping still an opportunity for beginners today, or has this changed

[Thread split from http://experienced-people.net/forums...hread.php/6024 ]

You just described website flipping accurately For a short time, the opportunity (both real estate and website flipping) was huge for anyone so inclined. People could learn to buy and improve real estate. People could learn to buy and improve websites. Once they knew how to build, manage, maintain sites, they could then buy properties, improve them, place those back on the market, and make money in a short period of time. As this became more common, and others learned of the opportunities, it became more competitive; Many people saw this and believed they had found a pot of gold.

Then, just like real estate, those that were the best at recognising opportunity and had the better skills, began to push the smaller people and n00bs out. A business-person that buys a duplex in need of repair, and knows how to do the repairs himself or has employees on payroll already capable, can pay more and still be profitable. Greater experience, economy of scale, lower cost resources, combines to push newbies into loss of their investment, as they cannot compete until (or unless) they build a same or better structure, to capitalise on opportunity better than their competition.

That all translates to web sites. A professional can price new aspiring website flippers out of the market, as people new to this simply would not have the experience of the person they are bidding against. A n00b looks at an opportunity to flip, sees decent revenue and thinks he can maintain or improve the site. The professional doesn't conjecture, they know in advance exactly how to improve monetisation, and set a maximum they can bid. Both deal with the risks differently.

A beginner sees revenue and decides they can bid 20x monthly, then if they add articles, content, drive more traffic, they can sell at a profit. The professional will easily price the beginner out of the market due to experience. The pro sees a familiar niche, knows the intricacies of the industry, knows the people to call tomorrow to get banner ads placed or has referral agreements, comes along and bids up to 150x monthly. Same website, same revenue, same opportunity, but the pro knows how to make more money faster, and uses that knowledge to seize opportunity from competition. The professional knows exactly how, prior to buying, to turn that 150x paid into 20x (or even less).

The new aspiring website buyer never had a chance, but nobody ever said business had to be fair. Ask any experienced person whether it is easier to find opportunity today, compared to a year ago, two years ago. How many people are successfully flipping real estate today? How many are successfully flipping web sites? Does anyone just do flips anymore? Is the attempt even valid any longer, or is it better to buy, hold, and operate purchases for revenue (rather than capital gains) in the current environment?

[[Join the thread and tell us - Clinton]]

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