Thanks Grey, I might have a play with a structure for it tonight and see what i come up with
Thanks Grey, I might have a play with a structure for it tonight and see what i come up with
"Hatching Cash -- It's Flippin' Great!"
[hides head in shame]
flipcrowd (March 2nd, 2011), WallStreetWriter (March 9th, 2011)
Some people make better money from hatching, some dont. I am trying to sell a hatched site for 1,000 which I did not expect, got a maybe interested buyer.
Flipping vs Hatching = I choose Flipping.
OK, there's definitely people hatching sites that are making far more than other people that are flipping sites. There's very few people that are making money hatching sites, that wouldn't probably make more money if they were putting the same effort and investment into flipping. Typically people get into hatching because sometimes it's easier to sell a hatched sites for $25-$50 than it is to sell a flipped site for a $1000.Originally Posted by Luka
You can get a domain, toss on a turnkey template, and sell it almost everytime on ebay to some noob on ebay. Buy a better quality name, set up a better quality site, then you might be able to sell it for some decent money but that's a little harder. Plus hatchers almost always tie the sale in with a hosting offer. The buyer doesn't have to take it but the sale is set up in such a way to make it simpler to just do so. Hatching is usually pretty easy upfront, but takes a lot of work if it's scaled up to make a lot of money. Hatching is usually done as a volume business, sometimes it's easier to sell a lot of cheap sites than a few expensive ones. It's typically more of a promotion for resellers to sell more recurring hosting which is there real income.
Flipping typically takes more work upfront, there's a bit more research necessary. They need to find the sites that look to be undervalued and then make an investment in them. Then do what's necessary to fix why the site is undervalued and then do a better job of promoting it to sell for the largest profit they can.
With 1 site an average flipper can make more money than an average hatcher can with 50 sites. There's people doing either method though that are making very good money. Find someone struggling with one method and you'll find other people succeeding with the other. Different people are good at different things, you'll always find people succeeding and other people failing no matter what business model they are using.
Hatching and Flipping both have their own advantages and disadvantages.
succor (March 4th, 2011)
OK, there's definitely people hatching sites that are making far more than other people that are flipping sites. There's very few people that are making money hatching sites, that wouldn't probably make more money if they were putting the same effort and investment into flipping. Typically people get into hatching because sometimes it's easier to sell a hatched sites for $25-$50 than it is to sell a flipped site for a $1000.
You can get a domain, toss on a turnkey template, and sell it almost everytime on ebay to some noob on ebay. Buy a better quality name, set up a better quality site, then you might be able to sell it for some decent money but that's a little harder. Plus hatchers almost always tie the sale in with a hosting offer. The buyer doesn't have to take it but the sale is set up in such a way to make it simpler to just do so. Hatching is usually pretty easy upfront, but takes a lot of work if it's scaled up to make a lot of money. Hatching is usually done as a volume business, sometimes it's easier to sell a lot of cheap sites than a few expensive ones. It's typically more of a promotion for resellers to sell more recurring hosting which is there real income.
Flipping typically takes more work upfront, there's a bit more research necessary. They need to find the sites that look to be undervalued and then make an investment in them. Then do what's necessary to fix why the site is undervalued and then do a better job of promoting it to sell for the largest profit they can.
With 1 site an average flipper can make more money than an average hatcher can with 50 sites. There's people doing either method though that are making very good money. Find someone struggling with one method and you'll find other people succeeding with the other. Different people are good at different things, you'll always find people succeeding and other people failing no matter what business model they are using.
Hatching and Flipping both have their own advantages and disadvantages.
Keep in mind also that flipping an undervalued site does not always mean you need to make an investment into it. If you bought a site at 3 or 4 times its monthly earnings, with literally zero work, you can turn around and resell it for 10-12 times the monthly as this is the going rate.
This is a perfect example of a flip without an investment.
Well that wouldn't actually be without an investment. There is that matter of purchasing it for 3-4 times it's monthly revenue.
That was my point, with the hatching model it's very low investment. Basically just $10 bucks or less for the cost of a domain, then host it on your own reseller account and toss a turnkey website on it. But with that low investment also comes a low return. Hatching is more of a volume business and generally most profitable when tied in with a hosting reseller business.
The flipping model has a slightly higher investment. Generally a multiple of the websites monthly generated income. But with that higher investment also comes a much larger return on the investment. You can flip significantly less sites in order to make significantly more income.
In either case though it really depends on how good you are at it. Like I said for every success story with one method you'll find many failures with the other. The same can be said of pretty much any business model.
So I think the important thing is to learn the business well, and then use that knowledge to make sure whichever model chosen that you'll be one of the ones who succeed.
I see hatching as being more of a scalable model.
i.e. you can hatch a site and sell it immediately - low investment/low return sure. But you can also hatch a site, sit on it and develop/grow it (or incubate if you will lol), then sell it for a higher price once you have a record of traffic/income to show.
So if you plan is to hatch and incubate, sure it's a longer term strategy but means you dont neccesarily have to be bound to it being a volume business model.
As with any plan though, I would suggest you have an exit strategy in place so you know when to cut your losses if the site you hatched is just not working for you...at which time you put it up for sale at a price thats appropriate for its stats.
I hadn't thought of it that way. Thank you for the insight. What you said rang a bell with me, if you'll pardon the expression. Something else to think about and consider as I move forward....
It is important to define the words but if you are flipping a website you have more money involved then when you build your site from scratch.
To generate a good profit its best to have a site that generates revenue and then you can sell it really easy.
No matter how you start If you want to sell it you need traffic and revenue to sell it for a good price.
What if you manage to flip the site before you have even paid for it
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