Improve Your Internet Marketing

In Part 1 of Secrets to Website Flipping, we looked at the 3 “fundamentals” that determine profitability: traffic, revenue, and unique content. In Part 2 we’re going to consider initial choices and considerations when building a site to flip. Part 3 will look at selling.

Perhaps the most common ‘mistake’ when building a site to flip is to build it from a seller’s perspective. This almost guarantees a less-than-ideal sale.

All the decisions should be made from a buyer’s perspective: what niche to enter, monetization method, etc.

There are generally two types of buyers - “business buyers” who are looking to buy a business to run, somewhat like a franchise buyer, and “portfolio buyers” who are looking to add to an existing ‘portfolio’ of sites. Both of them however want a site that requires as little care & feeding as possible. The closer the site is to ‘Autopilot’, the more potential buyers there will be.

For this reason, sites that require physical fulfillment, as in shipping a product, are harder to sell. An exception to this is a product sales site using dropshippers - sometimes.

The ‘best’ monetization methods, therefore, are advertising and digitally-delivered products such as ebooks or software. Membership sites sell well, however concerns over attrition will limit the number of potential buyers. Also, if membership fees are paid through Paypal, it means the membership must re-sign up after the sale, which will almost certainly reduce membership considerably.

Although unique content is potentially one of the most valuable assets, when building a site from scratch, traffic and/or revenue are the main concerns. Pay per click (PPC) is a viable option since it lets you generate traffic and sales almost immediately. Just be sure to keep records of PPC spending.

Generally speaking, you will want to have at least 3 months of performance before selling. While newer sites do sell, price is significantly lower for a site with too little history.

Avoid putting too much of “you” into the site; anything dependent on you reduces the chances of an optimal sale. This includes content unique to you, such as a newsletter or blog, and vendor accounts that require industry-specific qualifications.

Make sure everything is easily and legally transferrable, including licenses or vendor agreements, and entirely legal in terms of content and images.

Once you have a site that can be easily moved and transferred, and you have at least 90 days of at least some verifiable traffic and sales, it’s time to find a buyer.

Part 3 will look at where and how to flip your site, pricing, and other considerations.