• Flipping Sites

    The forum seems to get a lot of people interested in Flipping Sites, what I think people forget about is Flipping Sites is very similar to Flipping Houses which is where the term comes from.

    When people Flip a house they don't just buy it and resell it for a profit. Unless of course they know some insider information that will make it worthwhile, a change of zone, somebody looking to buy up the whole block. Normally when they flip a house they put a load of work and/or money into renovating the house. The old adage "Buy the worse house on the best street" is how they make money. They paint, they transform, they fix broken things, they install new things and always they take into account how much they spend on renovating as to how much they can get in return. Spending 100k on a house in a suburb that houses normally only sell for 80k will probably not make you any money.

    The same goes for Flipping Websites, once you purchase the website you must improve on the website to make it worth more money than what you purchased it for. Before you purchase a site you should have a plan on how to transform the site into something worth more money. Sitting on a site and hoping the value will increase just doesn't work for 999,999 sites of course there is that 1 gem in a million that will grow exponentially, but that also normally comes with a lot of time/capital injection.

    If you think about a website and what makes it valuable it becomes a little bit easier to work out how you can improve it. I am simplifying it a bit for the sake of this thread but it should give you something to think about.

    Traffic, what kind of traffic does the site already get? How can you get more traffic for the site?

    Users, what kind of users does the site have? and how does the site monetize those users? How can you get more Users? How can you monetize the users better?

    Tools and Services, how can you get more people to pay for those tools and services? Can you increase the value of those tools and services?

    Have you thought about how you are going to do this. If you think oh I will just slap Adsense on them and ride the money train well that train left the station a long time ago. If you think oh I will just get more content written to bring in more traffic, it doesn't always work like that anymore. If you think ok I will pay someone 50cents an hour to code the new tools/make them better, you will have lots of troubles, finding that one great coder is a pain in the backside for most outsourcers, unless you already are a coder or have a coder.

    Can it be done? Absolutely but the guys doing it professionally always have a plan of action before they jump in. Check the values of other sites in the same category can you actually make money from the flip? Even with working on a site it doesn't mean it is worth much more than before.
    This article was originally published in forum thread: Flipping Sites started by grynge View original post